This is a Colombian energy exploration and producing company that is very under valued at this point in time. Beaten down by the sector wide effects from crude oil's 60% free fall over the last 8 months, The company has managed the situation well by having long term contracts at fixed prices already in place before the drop in oil prices, The company made a great investment by purchasing 636,000 acres at a bargain price of $30 million from another oil company that went bankrupt. The potential natural gas reserves in this land has the potential of paying off massively with confirmed natural gas reserves already being found and contracted out. The domestic natural gas market in Columbia is tight and will be getting tighter in coming years. This has decoupled natural gas prices in the country from crude oil, and will be more supportive as Columbia will need to begin importing natural gas by 2017. The flexibility of Canacol to fill this demand makes it a good investment in a beaten down sector that is waiting for oil to rally.
Note: This company can also be traded under the ticker CNNEF
Note: This company can also be traded under the ticker CNNEF