C&C Scraps Sale, Opts for Growth

Oil exploration and production company C&C Energy has scrapped the sale of its Colombia properties, deciding instead to invest in expanding exploration and production assets, says a source in the Canada-based company. Scotia Waterous had been advising the company, which in July was producing some 3,500 barrels of oil per day (boepd) and expects to increase that to about 4,600 boepd by the end of the year. The source tells LatinFinance that the company received “8 or 9” bids but none were to acquire the whole company, which was C&C’s aim. “We’ll be aggressive in acquiring new blocks and investing in developing infrastructure,” he says. The source adds that the company, which has hedged oil prices at “$65 or $66 boepd” for 2009, expects its cash flow to increase to $60m in 2010, based on a projection of $68-$70 per barrel, from $40m in 2009 and $33m in 2008.