Canacol Energy Ltd. Announces 6,140 BOEPD in New Gas Sales Contracts and 44% Increase in 2P Gas Reserves in Colombia

Canacol Energy Ltd. ("Canacol" or the "Corporation")
(TSX:CNE)(OTCQX:CNNEF)(BVC:CNEC) is pleased to announce the execution of two new
gas sales contracts and a related 44% increase in 2P gas reserves at its 100%
operated Nelson gas field located on the Esperanza Exploration and Production
("E&P") Contract in the Lower Magdalena Basin of Colombia. The increase in
reserves is attributable to increased expected gas sales nominations with the
execution of the new gas sales contracts. Under the terms of the two new sales
contracts, Canacol will provide 35 million standard cubic feet per day
("mmscfpd") (6,140 barrels of oil equivalent per day) for a 5 year period
commencing in December 2015 at a price of US$ 5.40 / million British thermal
units ("mmbtu"). Canacol currently sells approximately 18 mmscfpd (3,158 barrels
of oil equivalent per day) to a local ferronickel producer under a 10 year
contract that expires in 2021. The Nelson field contains sufficient reserves to
satisfy both the existing and the new sales contracts for the life of the
contracts. The Corporation also announces that it plans to commence a 3 well gas
exploration program on the Esperanza E&P contract in June 2014, each of the
wells targeting large gas prospects situated close to the Nelson field and
existing pipeline and processing infrastructure.


Charle Gamba, President and CEO of Canacol, commented, "The acquisition of Shona
in 2012 is paying dividends, with the new gas contracts tripling current
expected gas production and associated cash flow by late 2015, all from the
existing reserves base we have proven up at the Nelson field and with only
minimum additional capital investment. We continue to aggressively seek new and
innovative gas contracts like these to commercialize both our existing gas
reserves base as well as potential new gas resources from our large inventory of
drill ready exploration prospects at Esperanza. With the objective of continuing
to grow our successful gas strategy in Colombia, the company plans to execute a
3 well gas exploration program around the Nelson field area starting mid-June
2014, targeting significant potential gas resources that are situated close to
Canacol operated facilities and transportation infrastructure. All of the
necessary drilling permits for this program are in hand, and civil works are
planned to commence in March."


Nelson Gas Reserves Update: http://media3.marketwire.com/docs/928626t3.pdf

The reserves evaluations, effective June 30, 2013 and December 31, 2013, were
conducted by the Corporation's independent reserves evaluators Collarini
Associates and DeGolyer and MacNaughton, respectively, and are in accordance
with National Instrument 51-101 - Standards of Disclosure for Oil and Gas
Activities. The reserves are provided on a net before royalty basis in units of
millions of barrels of oil equivalent using a forecast price deck for gas and
oil, adjusted for crude quality, in US dollars. The estimated values may or may
not represent the fair market value of the reserve estimates.


Canacol is an exploration and production company with operations focused in
Colombia and Ecuador. 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.


This press release contains certain forward-looking statements within the
meaning of applicable securities law. Forward-looking statements are frequently
characterized by words such as "plan", "expect", "project", "intend", "believe",
"anticipate", "estimate" and other similar words, or statements that certain
events or conditions "may" or "will" occur, including without limitation
statements relating to estimated production rates from the Corporation's
properties and intended work programs and associated timelines. Forward-looking
statements are based on the opinions and estimates of management at 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 to differ materially
from those projected in the forward-looking statements. The Corporation cannot
assure that actual results will be consistent with these forward looking
statements. They are made as of the date hereof and are subject to change and
the Corporation assumes no obligation to revise or update them to reflect new
circumstances, except as required by law. Prospective investors should not place
undue reliance on forward looking statements. These factors include the inherent
risks involved in the exploration for and development of crude oil and natural
gas properties, the uncertainties involved in interpreting drilling results and
other geological and geophysical data, fluctuating energy prices, the
possibility of cost overruns or unanticipated costs or delays and other
uncertainties associated with the oil and gas industry. Other risk factors could
include risks associated with negotiating with foreign governments as well as
country risk associated with conducting international activities, and other
factors, many of which are beyond the control of the Corporation. 


Boe conversion - The term "boe" is used in this news release. Boe may be
misleading, particularly if used in isolation. A boe conversion ratio of cubic
feet of natural gas to barrels oil equivalent is based on an energy equivalency
conversion method primarily applicable at the burner tip and does not represent
a value equivalency at the wellhead. In this news release, we have expressed boe
using the Colombian conversion standard of 5.7 Mcf : 1 bbl required by the
Ministry of Mines and Energy of Colombia. 


The reserves evaluations, effective June 30, 2013 and December 31, 2013, were
conducted by the Corporation's independent reserves evaluators Collarini
Associates and DeGolyer and MacNaughton, respectively, and are in accordance
with National Instrument 51-101 - Standards of Disclosure for Oil and Gas
Activities. The reserves are provided on a net before royalty basis in units of
millions of barrels of oil equivalent using a forecast price deck for gas and
oil, adjusted for crude quality, in US dollars. The estimated values may or may
not represent the fair market value of the reserve estimates. 


FOR FURTHER INFORMATION PLEASE CONTACT: 
Canacol Energy Ltd.
Investor Relations
214-235-4798
[e-mail]
www.canacolenergy.com