General Announcement::Canacol Energy Ltd Provides Exploration Drilling Update

Issuer & Securities

Issuer/ Manager
CANACOL ENERGY LTD.
Securities
CANACOLENE US$500M5.75%281124A - US134808AD63 - PNTB
CANACOLENE US$500M5.75%281124R - USU13518AC64 - YW0B
Stapled Security
No

Announcement Details

Announcement Title
General Announcement
Date &Time of Broadcast
14-Jul-2025 22:19:07
Status
New
Announcement Sub Title
Canacol Energy Ltd Provides Exploration Drilling Update
Announcement Reference
SG250714OTHR9PFH
Submitted By (Co./ Ind. Name)
Canacol Energy Ltd
Designation
SGX-SE
Description (Please provide a detailed description of the event in the box below)
CALGARY, ALBERTA (July 14, 2024) - Canacol Energy Ltd. ( Canacol or the Corporation ) (TSX: CNE; OTCQX: CNNEF; BVC: CNEC) provides the following update concerning its current drilling activities and results.
Natilla-2 ST3 Exploration Well (SSJN-7 Exploration and Production contract 100% Working Interest)
Natilla-2 ST3 reached a total depth of 15,616 feet true vertical depth ( ft TVD ) near the base of the Porquero Formation ( Porquero ), the planned intermediate casing point of the well situated just above the underlying Cienega de Oro ( CDO ) sandstone primary target. The well encountered the same over pressured gas charged Porquero sand intervals that were present in Natilla ST 1 and 2. After drilling to the intermediate casing depth of 15,750 feet measured depth ( ft MD ) without issues, a hole cleaning trip was conducted prior to running casing. During the hole cleaning trip, increased well bore instability and pressures were encountered that ultimately resulted in temporarily abandoning the well.
The rig has been released as a forward plan is being prepared to evaluate options for re-entering the current well or drilling a new Natilla-3 well targeting the gas charged sandstones encountered in the various sidetracks of the Natilla-2 well. The new drilling plan will incorporate drilling techniques to address the difficulty in running production liner across the over pressured gas charged sands encountered in the Porquero, and once addressed, continuing to deepen the well to the primary CDO sandstone reservoir target.
Borbon-1 Exploration Well (VIM-44 Exploration and Exploitation Contract, 100% Working Interest)
The Borbon-1 exploration well was spud on June 13, 2025, and reached a total depth of 10,751 ft MD on June 22, 2025. The well encountered 157 ft TVD of gas pay with an average porosity of 18 % within the primary CDO sandstone reservoir target. The well was cased and completed and will be brought on to production in early August 2025 once the flowline connecting the Sucre Norte platform, from which the Borbon, Zamia, and Palomino exploration wells are located, has been tied into the Jobo gas processing facility. Initial production from the well is anticipated to be 10 to 12 million standard cubic feet per day ( MMscfpd ) based on the performance of offsetting producing CDO wells.

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