Canacol Energy Ltd. Provides Sales and Operations Update, Announces Discovery at Siku 1

CALGARY, Alberta, Dec. 06, 2021 (GLOBE NEWSWIRE) — Canacol Energy Ltd. (“Canacol” or the “Corporation”) (TSX:CNE; OTCQX:CNNEF; BVC:CNEC) is pleased to provide the following information concerning its November 2021 natural gas sales, the Siku 1 exploration well, and drilling plans for the remainder of 2021.

Gas sales averaged 182 MMscfpd for November 2021

Realized contractual natural gas sales (which are gas produced, delivered, and paid for) were 182 million standard cubic feet per day (“MMscfpd”) for November 2021.

Siku 1 exploration well encounters 33 feet of net gas pay

The Siku 1 exploration well was spud on November 12, 2021 and reached a total depth of 8,825 feet measured depth on November 20, 2021. The well encountered 33 feet true vertical depth of net gas pay with an average porosity of 20% within the primary Cienaga de Oro sandstone reservoir target. The Corporation has completed casing the well and will return with a workover rig in early 2022 to complete and tie the well into permanent production.

Remaining 2021 drilling program

The rig is currently mobilizing to drill the Clarinete 6 development well. Clarinete 6 is targeting gas bearing sandstones within the CDO sandstone reservoir, the main producer within the Clarinete gas field. Clarinete 6 is anticipated to take approximately 5 weeks to drill and complete, and will be tied into permanent production by late January 2022.

Normal course issuer bid

On May 25, 2021, the Corporation began actively buying its shares back for cancellation under the terms of its Toronto Stock Exchange-approved normal course issuer bid and automatic share purchase program, which limits the maximum daily share purchases to 60,132 shares per day as outlined in a Dec. 21, 2020, press release. During November 2021, the Corporation repurchased 205,000 shares at an average price of $3.18 per share. Since May 25, 2021 the Corporation has repurchased a total of 2,978,700 shares at an average price of $3.25 per share.

About Canacol

Canacol is a natural gas exploration and production company with operations focused in Colombia. The Corporation’s common stock trades on the Toronto Stock Exchange, the OTCQX in the United States of America, and the Colombia Stock Exchange under ticker symbol CNE, CNNEF, and CNE.C, respectively.

Forward-Looking Statements

This news release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. All statements other than statements of historical fact contained in this news release may be forward-looking statements. Such statements can generally be identified by words such as “may,” “target,” “could,” “would,” “will,” “should,” “believe,” “expect,” “anticipate,” “plan,” “intend,” “foresee” and other similar words or phrases. In particular, forward-looking statements herein include, but are not limited to, statements relating to the expectations regarding the use of proceeds of the proposed offering. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in the forward-looking statements. Canacol believes that the expectations reflected in such forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. The forward-looking statements are expressly qualified in their entirety by this cautionary statement. The forward-looking statements are made as of the date of this news release and Canacol assumes no obligation to update or revise them to reflect new events or circumstances, except as expressly required by applicable securities law. Further information regarding risks and uncertainties relating to Canacol and its securities can be found in the disclosure documents filed by Canacol with the securities regulatory authorities, available at www.sedar.com.

CONTACT: For more information please contact:

Investor Relations
South America: +571.621.1747 IR-SA@canacolenergy.com
Global: +1.403.561.1648 IR-GLOBAL@canacolenergy.com