Canada-based Canacol Energy has encountered 130ft of net oil pay at its Rancho Hermoso 11 well in the Llanos Basin of Colombia.

Drilled to a depth of 10,189ft, the cased well will be brought to permanent production from the Ubaque reservoir within the next two weeks.

This is the first of a four-well drilling programme being undertaken by the company this year at its Rancho Hermoso field.

The well encountered oil pay within six different reservoir intervals: C7, Mirador, Los Cuervos, Barco, Guadalupe and Ubaque.

Canacol will use $15m to fund all of its development and exploration programmes until the end of 2012.