General Announcement::Canacol Energy Ltd. Provides Gas Sales and 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
05-Sep-2023 20:00:06
Status
New
Announcement Sub Title
Canacol Energy Ltd. Provides Gas Sales and Drilling Update
Announcement Reference
SG230905OTHREONJ
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. Provides Gas Sales and Drilling Update

CALGARY, ALBERTA (September 5, 2023) - Canacol Energy Ltd. ("Canacol" or the "Corporation") (TSX:CNE; OTCQX:CNNEF; BVC:CNEC) is pleased to provide the following gas sales and drilling operations update.

August Gas Sales of 178 MMscfpd

Realized contractual natural gas sales (which are gas produced, delivered, and paid for) were 178 million standard cubic feet per day for August 2023.

Commencing the second week of August 2023 the Corporation experienced unusual and unexpected production capacity restrictions at some of its gas fields as a result of issues at the Jobo gas treatment facility as well as certain of its producing wells. As a result of the foregoing the Corporation has had to restrict gas deliveries under certain supply contracts dedicated to supplying non-essential gas demand, all in accordance with applicable Colombian regulations and in consultation with the relevant authorities. The Corporation is presently working on remediating this short-term disruption and expects to have production back to normal levels shortly.

Near Term Drilling Program

The Corporation spud the Cereza 1 exploration well on August 9, 2023 and reached a TD of 7,650 feet measured depth on August 20, 2023. The well encountered noncommercial quantities of gas within the Cienaga de Oro ( CDO ) sandstone reservoir and was plugged and abandoned.

The Corporation is currently drilling the Fresa 2 appraisal well targeting sandstones of the CDO reservoir that are productive in the offsetting Fresa 1 exploration well drilled in 2021. The Corporation anticipates completing the drilling of the well within the next two weeks.

Two drilling rigs are currently being mobilized to drill the Agua Vivas 4 and Pandereta 9 development wells, with expected spud dates of the second week of September 2023 and the first week of October 2023 respectively. Both are infill development wells, and each will take approximately 4 weeks to drill and complete.

The Corporation is focusing on infill development drilling and workover opportunities to meet anticipated high gas demand during the El Ni o season which is anticipated to start in fourth quarter 2023. The company will return to exploration drilling prior to year end.

Attachments

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