General Announcement::Canacol Energy Ltd. Achieves 169% 2P Reserve Replacement Ratio Increasing 2P Reserves to 652 Bcfe

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
21-Mar-2023 19:34:11
Status
New
Announcement Sub Title
Canacol Energy Ltd. Achieves 169% 2P Reserve Replacement Ratio Increasing 2P Reserves to 652 Bcfe
Announcement Reference
SG230321OTHRG3UN
Submitted By (Co./ Ind. Name)
Canacol Energy
Designation
Canacol Energy
Description (Please provide a detailed description of the event in the box below)
Canacol Energy Ltd. Achieves 169% 2P Reserve Replacement Ratio Increasing 2P Reserves to 652 Bcfe with a Before Tax Value of US$1.9 Billion

CALGARY, ALBERTA - (March 21, 2023) - Canacol Energy Ltd. ( Canacol or the Corporation ) (TSX:CNE; OTCQX:CNNEF; BVC:CNEC) is pleased to report its conventional natural gas and light/medium crude oil reserves for the fiscal year end December 31, 2022. The Corporation s conventional natural gas reserves are located in the Lower Magdalena Valley basin, Colombia. Newly discovered light/medium crude oil reserves are located in the Middle Magdalena Valley basin, Colombia.
Canacol Energy Ltd Gross Conventional Natural Gas and Light/Medium Crude Oil Reserves Summary(1)(5)



Highlights
Conventional Natural Gas and Light/Medium Crude Oil Proved + Probable Reserves ( 2P ):
- Increased by 7.5% since December 31, 2021, totaling 652 billion standard cubic feet equivalent ( Bcfe ) at December 31, 2022, with a before tax value discounted at 10% of US$1.9 billion, representing both CAD$76.67 per share of reserve value, and CAD$53.79 per share of 2P net asset value (net of US$578.2 million of net debt)
- Reserve replacement of 169% based on calendar 2022 conventional natural gas and light/medium crude oil reserve additions of 79.5 Bcf and 5.7 MMBbls, respectively, totaling 112 Bcfe
- 2P Finding and Development Cost ( F&D ) of US$1.87 / Mcfe for the three-year period ending December 31, 2022
- Recycle ratio of 1.7x for the year ended December 31, 2022 (calculated based on the natural gas netback of US$3.68 / Mcf for the year ended December 31, 2022)
- Recycle ratio of 1.9x for the three-year period ending December 31, 2022 (calculated based on the weighted average natural gas netback of US$3.55 / Mcf for the years ended December 31, 2022, 2021 and 2020)
- Reserves life index ( RLI ) of 10.0 years based on annualized fourth quarter 2022 conventional natural gas production of 177,985 thousand standard cubic feet per day ( Mscfpd ) or 31,225 barrels of oil equivalent per day ( BOEPD )
- RLI of 8.7 years based on conventional natural gas production guidance of 206,000 Mcfpd for calendar 2023 (high end 2023 production guidance as announced December 20, 2022)



Conventional Natural Gas and Light/Medium Crude Oil Total Proved Reserves ( 1P ):
- Decreased by 7.9% since December 31, 2021, totaling 339 Bcfe at December 31, 2022, with a before tax value discounted at 10% of US$1.0 billion, representing both CAD$39.32 per share of reserve value, and CAD$16.43 per share of 1P net asset value (net of US$578.2 million of net debt)
- Reserve replacement of 56% based on calendar 2022 conventional natural gas and light/medium crude oil reserve additions of 31.5 Bcf and 1.0 MMBbls, respectively, totaling 37 Bcfe
- Concurrent drilling operations through to year end resulted in discoveries at Chimela on the VMM45 block, Saxofon on the VIM5 block, and Dividivi on the VIM33 block. However, by the December 31, 2022 effective date of the report, limited production testing could occur impacting 1P reserve bookings.
- 1P F&D of US$2.60 / Mcfe for the three-year period ending December 31, 2022
- RLI of 5.2 years based on annualized fourth quarter 2022 conventional natural gas production of 177,985 Mcfpd or 31,225 BOEPD
- RLI of 4.5 years based on conventional natural gas production guidance of 206,000 Mcfpd for calendar 2023 (high end 2023 production guidance as announced December 20, 2022)
Conventional Natural Gas and Light/Medium Crude Oil Total Proved + Probable + Possible Reserves ( 3P ):
- Increased by 14.3% since December 31, 2021, totaling 1,088 Bcfe at December 31, 2022, with a before tax value discounted at 10% of US$3.1 billion, representing both CAD$124.36 per share of reserve value, and CAD$101.48 per share of 3P net asset value (net of US$578.2 million of net debt)
- Reserve replacement of 304% based on calendar 2022 conventional natural gas and light/medium crude oil reserve additions of 124.8 Bcf and 13.6 MMBbls, respectively, totaling 202 Bcfe.
- 3P F&D of US$1.05 / Mcf for the three-year period ending December 31, 2022
- RLI of 16.8 years based on annualized fourth quarter 2022 conventional natural gas production of 177,985 Mcfpd or 31,225 BOEPD
- RLI of 14.5 years based on conventional natural gas production guidance of 206,000 Mcfpd for calendar 2023 (high end 2023 production guidance as announced December 20, 2022)

Attachments

21.03.2023 - Canacol Energy Ltd. Achieves 1.69 2P Reserve Replacement Ratio Increasing 2P Reserves to 652 Bcfe.pdf
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