Canacol Energy has secured a 100% operated working interest in three new conventional gas exploration contracts in Colombia.

The company secured the blocks as part of a bid administered by Colombia’s hydrocarbon regulatory agency, the Agencia Nacional de Hidrocarburos (ANH).

Under the company’s fully owned subsidiary CNE Oil & Gas, Canacol received conventional exploration contract VIM 33, which is spread across 155,310 acres in the Lower Magdalena Valley basin.

Two other conventional exploration contracts, namely VMM 45 and VMM 4, are located in the Middle Magdalena Valley Basin.

The VMM 45 block is spread across 12,422 acres and VMM 49 on a 148,244-acre area.

Canacol Energy Exploration senior vice-president Mark Teare said: “Our success in the bid round enables us to build out our existing land position in the Lower Magdalena Valley basin where the corporation has established itself as Colombia’s leading independent producer of conventional natural gas.

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“Furthermore, with a view to expanding our exploration portfolio, we have established a new core conventional natural gas exploration area in the Middle Magdalena Valley basin where we have won two blocks totalling 160,666 net acres.

“By extending our exploration efforts for conventional natural gas to the Middle Magdalena Valley basin, the corporation continues to execute its successful conventional gas exploration strategy to replace declining production from the mature gas fields located in the Guajira and at Cusiana-Cupiagua in the Llanos Basin.”

The blocks will increase the company’s land position for conventional natural gas in Colombia by 29% on a net acreage basis.

Canacol Energy expects to begin exploratory work on the blocks next year and aims to start drilling in 2021 and 2022.

The exploratory work programme will include geological studies, seismic and wells over a three-year phase on each block.

Upon completion of the initial phase, the company can extend the programme by another three years on each contract.