Canacol Energy Ltd. Provides Production and Operations Update

Canacol Energy Ltd. ("Canacol" or the "Corporation")
(TSX:CNE)(OTCQX:CNNEF)(BVC:CNEC) is pleased to provide the following update
concerning its production and drilling operations in Colombia and Ecuador.
Average net production before royalties for the period April 1 to June 30 2014
was 12,212 barrels of oil equivalent per day ("boepd"), which consisted of 9,271
barrels of oil per day ("bopd") and 16.7 million standard cubic feet per day
("mmscfpd") (2,941 boepd) of gas. This reflects an increase of 12% from the
previous quarter and an increase of 47 % year over year. Average net production
before royalties for the month of July 2014 was 13,274 boepd, which consisted of
10,102 bopd and 18.1 mmscfpd (3,172 boepd) of gas.


Esperanza E&P Contract (Lower Magdalena Basin - Colombia) 

The Corporation has completed the drilling of the Palmer 1 gas exploration well
and is preparing to run casing in preparation of production testing the primary
Cienaga de Oro sandstone reservoir objective. Upon the completion of the testing
at Palmer 1 the Corporation plans to spud the second of three planned
exploration wells targeting the Cienaga de Oro reservoir, Corozo 1, in early
September 2014 subject to approval by the Agencia Nacional de Hidrocarburos
("ANH"). The Corporation plans to commence the drilling of the third exploration
well, Canandonga 1, in November 2014.


LLA23 E&P Contract (Llanos Basin- Colombia) 

The Corporation has completed the drilling of the Pantro 2 appraisal well and is
currently production testing several reservoirs. Upon completion of the
production testing of the Pantro 2 appraisal well, the Corporation plans to spud
the Tigro 1 exploration well in mid-August 2014. The Corporation spud the
Pointer 1 exploration well on July 28, 2014, and expects results in late August
2014. The Corporation plans to drill an additional 7 wells on LLA23 throughout
the remainder of calendar 2014, which includes the Maltes 1 exploration well,
subject to approval by the ANH.


Santa Isabel E&P Contract (Middle Magdalena Basin - Colombia) 

The Corporation has completed the drilling of the Oso Pardo 2 well and is
running casing in preparation of production testing the primary Umir sandstone
reservoir objective. The Corporation plans to spud the Oso Pardo 3 appraisal
well subject to the approval of the ANH in late August 2014, which will also
target production from the Umir sandstone reservoir. Based upon the positive
results achieved by the Morsa 1 and Oso Pardo 2 wells, the Corporation plans to
drill an additional exploration well, Navarl 1, prior to year end calendar 2014
subject to the approval of the ANH.


Libertador-Atacapi Field (Oriente Basin - Ecuador) 

The Corporation completed the drilling of the Shushuqui 23 development well in
the Libertador-Atacapi field and tested 3,534 bopd gross (884 bopd net) of 30
degrees API oil with a 3% water cut from the Cretaceous T sandstone reservoir
over a 23 day flow period. The Shushuqui 23 well is the 5th of 10 planned
development wells completed in the Libertador-Atacapi field so far in calendar
2014. 


Ombu E&P Contract (Putumayo / Caguan Basin - Colombia) 

The Corporation has completed the drilling of the Capella P88H horizontal
production well located in the Capella heavy oil field and is preparing to bring
the well onto production. The well is the 11th of 20 planned development wells
drilled in Capella by the Corporation so far in calendar 2014.


The Corporation will provide updates when relevant information becomes available.

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. 


Data obtained from the initial testing results at the well identified in this
press release, including barrels of oil produced and levels of water-cut, should
be considered to be preliminary until a further and detailed analysis or
interpretation has been done on such data. The well test results obtained and
disclosed in this press release are not necessarily indicative of long-term
performance or of ultimate recovery. The reader is cautioned not to unduly rely
on such results as such results may not be indicative of future performance of
the well or of expected production results for the Corporation in the future.


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