Canacol Energy Ltd. report the start of its heavy oil exploration drilling program on its Portofino and Cedrela Exploration and Production (E&P) contracts located in the Caguan - Putumayo Basin in Colombia.

The Corporation has a 100% working interest and is operator of the Cedrela, Sangretoro, and Tamarin contracts, which represent approximately 773,070 net acres, and a 40% working interest in the Portofino contract, which represents approximately 103,472 net acres.

The Corporation has executed a contract with Estrella International Energy Services Ltd for the Estrella 552 rig, which is currently being mobilized to Colombia from Peru. Canacol plans to drill six stratigraphic wells which include four wells on the Portofino contract and two wells on the Cedrela contract in a back to back drilling campaign that will commence in late July 2012 and end in early 2013.

Tags: Canacol Energy Inc.