Canacol Energy Ltd has announced an update of its prospective oil-bearing resources in Guyana as efforts continue for likely second quarter 2010 drilling in the Takutu basin in the Rupununi.

The Calgary, Alberta-based company has a 65% non-operated working interest in the block.

A Marketwire release said yesterday that in November last year the Corporation announced contingent resources for the Takutu Block Karanambo discovery which tested 411 barrels of light oil per day by Home Oil in 1982. This contingent figure was based on a report prepared by Gaffney Cline & Associates (“GCA”) dated July 2008.

The Corporation has received an updated report from GCA and is amending this contingent resource estimate previously provided by GCA. The updated data relates to Karanambo, Apoteri and the Rewa and Pirara areas.

The joint venture operator, Groundstar Resources Ltd., is currently tendering for a drilling rig and associated services in order to drill the K-2 exploration well in the second quarter next year. “The bottom hole location for the K-2 well will be approximately 400 meters northwest of the Karanambo 1 discovery well, and will target the same productive reservoirs that tested light oil in 1982. The joint venture to date has completed the construction of the drilling pad, access roads, and staging areas in preparation of drilling”, the release said. In addition, the joint venture has purchased the tubulars and wellheads for the drilling of up to 3 wells, which are now in country in preparation of drilling the K-2 well.