Canacol Energy Ltd. Announces Filing of Final Prospectus for Bought Deal Prospectus Offering

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Canacol Energy Ltd. ("Canacol" or the "Corporation") (TSX:CNE)(BVC:CNEC) is
pleased to announce that it has filed with the applicable Canadian securities
regulators the final prospectus for its previously announced short form
prospectus offering (the "Bought-Deal Offering") in respect of an underwritten
bought-deal financing for aggregate gross proceeds of $125,001,700. The
Bought-Deal Offering is being led by Canaccord Genuity Corp. and includes a
syndicate of underwriters consisting of TD Securities Inc., CIBC, Cormark
Securities Inc., Desjardins Securities Inc., GMP Securities L.P. and Mackie
Research Capital Corporation (collectively, the "Underwriters"). A total of
15,823,000 common shares of the Corporation ("Common Shares") will be issued
under the Bought-Deal Offering at the offering price of $7.90 per Common Share.
The Corporation has also granted an over-allotment option to the Underwriters
for the purchase of up to an additional 2,373,450 Common Shares (representing
15% of the total Bought-Deal Offering) at the offering price of $7.90 per Common
Share exercisable until 30 days from the closing of the Bought-Deal Offering for
additional gross proceeds of up to $18,750,255. The prospectus has been filed in
each of the Provinces of Canada other than Quebec and the Corporation expects
that the Bought-Deal Offering will be completed on or about May 27, 2014. 


The net proceeds to the Corporation from this Bought-Deal Offering, prior to the
exercise of the Over-Allotment Option, are estimated to be $119,126,623.50 after
deducting the Underwriters' fee of $5,625,076.50 and the estimated expenses of
this Bought-Deal Offering of $250,000. The Corporation intends to use the net
proceeds from the Bought-Deal Offering to fund future capital expenditure
activities in Colombia and for general corporate and working capital purposes.
The Corporation's on-going capital expenditures are expected to be incurred in
connection with drilling, completion and equipping operations by the
Corporation, as well as land, seismic, facilities construction and property
purchases, all relating to the Corporation's capital exploration and development
program.


The following is an approximate breakdown of the proposed use of the net
proceeds of the Bought-Deal Offering: 




Activity                                                            Cost ($)
----------------------------------------------------------------------------
2014 capital expenditure activities: two exploration wells     62,900,000.00
 and seven development wells on the LLA 23 E&P and Santa                    
 Isabel contracts                                                           
Future unallocated capital expenditure activities, working     56,226,623.50
 capital and general corporate expenses                                     
                                                            ----------------
Total                                                        $119,126,623.50



The securities offered have not been and will not be registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold in the United
States absent registration or an available exemption from the registration
requirements thereof. This press release shall not constitute an offer to sell
or the solicitation of an offer to buy nor shall there be any sale of the
securities in any jurisdiction in which such offer, solicitation or sale would
be unlawful.


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, including statements relating to the
Bought-Deal Offering. 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 the closing of the Bought-Deal Offering. 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 capital market transactions, 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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Canacol Energy Ltd.
Investor Relations
888-352-0555
[e-mail]
www.canacolenergy.com