General Announcement::Canacol Energy Ltd. Provides 2022 Capital and Gas Sales Guidance

Issuer & Securities

Issuer/ Manager
CANACOL ENERGY LTD.
Securities
CANACOLENE US$500M5.75%281124A - US134808AD63 - PNTB
CANACOLENE US$500M5.75%281124R - USU13518AC64 - YW0B
CANACOLENE US$320M7.25%250503A - US134808AC80 - 8UAB
CANACOLENE US$320M7.25%250503R - USU13518AB81 - 8UBB
Stapled Security
No

Announcement Details

Announcement Title
General Announcement
Date &Time of Broadcast
16-Dec-2021 06:23:58
Status
New
Announcement Sub Title
Canacol Energy Ltd. Provides 2022 Capital and Gas Sales Guidance
Announcement Reference
SG211216OTHR7YPX
Submitted By (Co./ Ind. Name)
Canacol Energy Ltd.
Designation
SGX-ST
Description (Please provide a detailed description of the event in the box below)
CALGARY, Alberta (December 15, 2021) Canacol Energy Ltd. ( Canacol or the Corporation ) (TSX:CNE; OTCQX:CNNEF; BVC:CNEC) is pleased to provide its capital and gas sales guidance for 2022. Dollar amounts are expressed in United States dollars, with the exception of Canadian dollar unit prices ( C$ ) where indicated and otherwise noted.

The Corporation announces that its 2022 capital budget is between $172 million and $209 million which will be fully funded from existing cash and 2022 cash flows. Record capital spending of up to $209 million will make good on Canacol s commitment to becoming an increasingly large supplier for Colombia s gas needs. Forecast realized contractual gas sales for 2022, which include downtime, are anticipated to range between approximately 160 and 200 million standard cubic feet per day ( MMscfpd ). The Corporation s firm 2022 take-or-pay contracts alone average 160 MMscfpd net of 2022 contractual downtime. The average wellhead sales price, net of transportation costs where applicable, is expected to be approximately $4.61/Mcf to $4.74/Mcf.

Charle Gamba, President and CEO of Canacol, stated: For 2022, the Corporation is focused on the following objectives:
1) the drilling of up to 12 exploration and development wells in a continuous program targeting a 2P reserves replacement ratio of more than 200%;
2) the acquisition of the 470 square kilometers of 3D seismic on the VIM-5 block to expand the Corporation s exploration prospect inventory;
3) the purchase of rental facilities equipment and the installation of gas compression to lower opex and increase recovery factors, respectively;
4) the selection of a contractor for the new gas pipeline from Jobo to Medellin which will add 100 MMscfpd of new gas sales to the interior in late 2024, resulting in Canacol being responsible for 30% of Colombia s domestic gas supply;
5) continuing our return of capital to shareholders in the form of dividends and share buybacks; and
6) continue with our commitment of strengthening our environmental, social and governance strategy and reporting with the objective of improving the Corporation s ranking on various sustainability indices.

Please refer to the attached press release for further details.

Attachments

2021 12 15 Canacol Energy Ltd. Provides 2022 Capital and Gas Sales Guidance.pdf
Total size =130K