2011-05-31-2011-05-09-2011-05-09

To buy total 147,000 gross acres in Central Llanos Basin in Colombia, gaining 1,400 gross BOE/d, 2.27 MMBOE proved.

Grupo C&C Energia (Barbados) Ltd., a subsidiary of C&C Energia Ltd., Calgary, (Toronto: CZE) has acquired certain assets in Colombia from Ramshorn International Ltd., a subsidiary of Nabors Drilling USA, a unit of Nabors Industries Ltd., Hamilton, Bermuda, (NYSE: NBR) for US$89 million.

The assets are in the oily Central Llanos Basin and are comprised of a 70% operated interest in the Cachicamo E&P block covering 87,646 gross acres (61,532 net acres) and a 50% nonoperated interest in the Pajaro Pinto exploration block covering 60,080 gross acres (30,040 net acres). C&C holds the 30% interest in the Cachicamo Block that Ramshorn didn't hold and is the operator and 50% working interest owner of the Pajaro Pinto Block.

The Cachicamo Block has production of approximately 1,400 barrels of oil equivalent per day (980 barrels net to the acquired interests) of light oil and is anticipated to average 1,860 barrels per day (1,300 barrels net) for 2011. As of Dec. 31, proved reserves were 2.27 million barrels, proved and probable reserves were 2.92 million barrels and proved, probable and possible reserves were 3.74 million barrels.

The Pajaro Pinto block is southwest of the Cachicamo acreage. Up to five exploration prospects were identified and C&C plans to drill at least two prospects this year with the first well to spud in the second quarter of 2011.

C&C Energia president and chief executive Richard A. Walls says, "The acquisition of these assets is not only accretive to C&C but is also strategic to C&C's holdings in the Llanos Basin of Colombia. Cachicamo is adjacent to C&C's major producing property on the Cravoviejo E&P Block and consolidation of Cachicamo production with C&C's 100% owned Cravoviejo production facilities is expected to result in significant cost and efficiency savings over the life of the property."