Canacol Energy Ltd. provides update on sales, drilling operations and share buyback

CALGARY, Alta., Feb. 08 2022 (GLOBE NEWSWIRE) — Canacol Energy Ltd. (“Canacol” or the “Company”) (TSX: CNE; OTCQX: CNNEF; BVC: CNEC) is pleased to provide the following information regarding its January 2022 natural gas sales, the Toronja 2 development well, development plans short-term drilling and the Company’s normal course issuer bid.

Gas sales averaged 170 MMscfpd for January 2022

Realized contractual sales of natural gas (i.e. gas produced, delivered and paid for) were approximately 170 million standard cubic feet per day (“MMscfpd”) for January 2022.

Toronja 2 development well encounters 29 feet of net gas

The Toronja 2 development well was set on January 17, 2022 and reached a total depth of 6,899 feet measured on January 23, 2022. The well encountered a true vertical depth of 29 feet of net gas with porosity average of 28% in the primary Porquero sandstone reservoir target. The Toronja 2 well was connected to the Toronja production manifold and put into permanent production.

Mobilization of the drilling platform to drill the Carambolo 1 exploration well

The rig is currently mobilizing to drill the Carambolo 1 exploration well targeting gas-bearing sandstones in the Cienaga de Oro sandstone reservoir. Carambolo 1 should take around 4 weeks to drill, complete and test. Following the completion of Carambolo 1, the rig will be mobilized to seed the Arandala 3 development well, which the Company expects to start in March 2022. The Arandala 3 well will also take approximately 3 weeks to drill, complete and tie-in to permanent production.

Normal Course Issuer Bid

In January 2022, the Company repurchased 5,307,700 common shares for C$3.15 per share under its normal course issuer bid (“NCIB”), based on the bulk purchase exemption under OPRCA rules.

The purchase was made from an arm’s length third party through the TSX Exchange. Canacol’s management believes that Canacol’s shares are trading at a significant discount to their net asset value. Canacol has agreed to purchase its shares under its OPRCNA whenever they trade at a relevant discount to their net asset value, provided that Canacol has sufficient liquidity.

About Canacol

Canacol is a natural gas exploration and production company whose operations are concentrated in Colombia. The Company’s common shares trade on the Toronto Stock Exchange, OTCQX in the United States of America and the Colombian Stock Exchange under the symbols CNE, CNNEF and CNE.C, respectively.

Forward-looking statements

This press release contains certain forward-looking statements within the meaning of applicable securities laws. Forward-looking statements are often characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other words similar, or statements that certain events or conditions “may” or “will” occur, including, without limitation, statements relating to estimated production rates of the Company’s properties and planned work programs and associated timelines. Forward-looking statements are based on the opinions and estimates of management as of the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results actuals differ materially from those projected in the forward-looking statements. research statements. The Company cannot guarantee that actual results will be consistent with these forward-looking statements. They are established as of the date hereof and are subject to change and the Company assumes no obligation to revise or update them to reflect new circumstances, except as required by law. Potential investors should not place undue reliance on forward-looking statements. These factors include the inherent risks associated with exploring for and developing crude oil and natural gas properties, uncertainties associated with the interpretation of drill results and other geological and geophysical data, fluctuations in energy prices, the possibility of cost overruns or unforeseen costs or delays and other uncertainties associated with the oil and gas industry. Other risk factors could include risks associated with dealings with foreign governments as well as country risk associated with conducting international business, and other factors, many of which are beyond the Company’s control.

Realized contract gas sales are defined as gas produced and sold plus gas revenues from designated purchase or payment contracts.

CONTACT: For more information please contact: Investor Relations South America: +571.621.1747 [email protected] Global: +1.403.561.1648 [email protected]