Canacol Energy Ltd. Announces Revised 2024 Capital Program, Comments on 2024 Guidance and Provides Drilling Update

Canacol Energy Ltd. (“Canacol” or the “Corporation”) (TSX: CNE; OTCQX: CNNEF; BVC: CNEC) announces that it has revised its 2024 capital program, comments on 2024 guidance and provides drilling update.

Revised 2024 Capital Program

The Corporation has revised its capital program to now drill a total of 11 wells in 2024, with an estimated capital spend of $138 million. The 11-well program includes five exploration wells, and six development/appraisal wells. Canacol’s original 2024 capital budget, as announced on February 5, 2024, had included a range of $138 million (four exploration wells and three development/appraisal wells) to $151 million (four exploration wells and five development/appraisal wells). Drilling program efficiency initiatives have contributed significantly to planning for increased drilling activity without increases in total capital program costs.

The Corporation currently anticipates 2024 EBITDA to be in the mid to higher range of its previously announced guidance of $250 million to $290 million, with its natural gas and oil sales volumes anticipated to average approximately 167 million cubic feet equivalent per day.

The revised 2024 capital program has been designed to achieve corporate production and reserve addition targets. To date the Corporation has drilled six wells, which include five successful wells that are currently on production (Clarinete-10, Pomelo-1, Chontadura-1, 2 and 3) and the unsuccessful Cardamomo-1 well.

Cardomomo 1 Exploration Well

The Cardomomo 1 exploration well, located on the VIM5 Exploration and Production (E&P) contract, was drilled to a total depth of 11,591 feet measured depth targeting the Cienaga de Oro Formation. The well encountered 203 feet true vertical depth of net porous sandstones within the CDO with non commercial amounts of natural gas. The Cardomomo 1 well has now been abandoned.

Go Forward Drilling Program

For the remainder of 2024, the Corporation plans to drill 3 appraisal wells in producing gas fields and 2 exploration wells.

The Nispero 2 appraisal well will target gas bearing sandstones of the CDO Formation within the Nispero gas field which the Corporation discovered in 2016. The Corporation anticipates spudding the well in early October 2024, with the well entering production in late October 2024.

The Natilla 2 exploration well is targeting a large natural gas prospect within the SSJN7 E&P contract. The primary target of the Natilla 2 exploration well are sandstones of the CDO Formation, with secondary sandstone targets in the overlying Porquero Formation. The Corporation anticipates spudding Natilla 2 in early October 2024 and anticipates that the well will take approximately 2 months to drill.

The Siku 2 appraisal well will target gas bearing sandstones within the CDO Formation in the Siku and Oboe gas fields, which the Corporation discovered in 2016. The Corporation anticipates spudding the well in early November 2024, with the well entering production in late November 2024.

The Kite 1 exploration well is targeting sandstones of the CDO Formation in a prospect located between the Palmer gas field discovered in 2014 immediately to the south, and the Pomelo and Chontaduro gas fields discovered in early 2024 immediately to the north. The Corporation anticipates spudding the well in early October 2024, with results by late October 2024. If successful, the Kite 1 well will be immediately tied into production.

The Lulo 3 appraisal well is targeting gas bearing sandstones of the CDO Formation within the Lulo gas field discovered in early 2023. The Corporation anticipates spudding the well in early December 2024, with the well entering production in late December 2024.

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 Information and Statements

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”, “target”, “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. Information and guidance provided herein supersedes and replaces any forward looking information provided in prior disclosures. 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. Other risks are more fully described in the Corporation’s most recent Management Discussion and Analysis (“MD&A”) and Annual Information Form, which are incorporated herein by reference and are filed on SEDAR at www.sedar.com. Average production figures for a given period are derived using arithmetic averaging of fluctuating historical production data for the entire period indicated and, accordingly, do not represent a constant rate of production for such period and are not an indicator of future production performance. Detailed information in respect of monthly production in the fields operated by the Corporation in Colombia is provided by the Corporation to the Ministry of Mines and Energy of Colombia and is published by the Ministry on its website; a direct link to this information is provided on the Corporation’s website.

For more information please contact:
Investor Relations
South America: +571.621.1747 [e-mail]
Global: +1.403.561.1648 [e-mail]
http://www.canacolenergy.com