General Announcement::Canacol Energy Ltd. Provides 2025 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
Stapled Security
No

Announcement Details

Announcement Title
General Announcement
Date &Time of Broadcast
24-Feb-2025 21:39:18
Status
New
Announcement Sub Title
Canacol Energy Ltd. Provides 2025 Capital and Gas Sales Guidance
Announcement Reference
SG250224OTHRJ1BQ
Submitted By (Co./ Ind. Name)
Canacol Energy Ltd.
Designation
SGX-SE
Description (Please provide a detailed description of the event in the box below)
Canacol Energy Ltd. Provides 2025 Capital and Gas Sales Guidance

CALGARY, Alberta (February 24, 2025) Canacol Energy Ltd. ( Canacol or the Corporation ) (TSX:CNE; OTCQX:CNNEF; BVC:CNEC) is pleased to provide its capital and gas sales guidance for 2025. 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 2025 capital budget is between $143 million and $160 million. Forecast average realized contractual gas sales and oil sales for 2025, which include downtime, are anticipated to range between 146 and 159 million cubic feet equivalent per day ( MMcfepd ). The Corporation s firm 2025 take-or-pay natural gas contracts average 111 MMcfpd, net of contractual downtime. The average wellhead natural gas sales price (including take-or-pay and interruptible volumes), net of transportation costs, is expected to range between $7.33/Mcf and $7.65/Mcf on average.
Corporate Plan for 2025
Charle Gamba, President and CEO of Canacol, stated: In 2025 the Corporation is focused on i) maintaining and growing our reserve base and production from our core assets in the Lower Magdalena Valley Basin, targeting the full use of existing transportation infrastructure; ii) exploring higher impact gas exploration opportunities in the Lower and Middle Magdalena Valley Basin; iii) laying the groundwork to be able to commence operations in Bolivia in 2026 and iv) continue our commitment to our ESG strategy .
For 2025, the Corporation is focused on the following specific objectives:
In line with maintaining and growing our reserves and production in our core gas assets in the Lower Magdalena Valley Basin ( LMV ) we plan to optimize our production and increase reserves by drilling up to 11 exploration and 3 development wells, install new compression and processing facilities as required, and workover operations of producing wells in our key gas fields. These development and exploration activities are planned to support our robust EBITDA generation and allow us to capitalize on strong gas market dynamics in 2025.
The development wells include the Clarinete-11, Siku-2 and Lulo-3 wells, all of which have already been successfully drilled and brought on production.
The exploration drilling plan includes 10 gas exploration wells in the LMV and one gas and condensate exploration well in the Middle Magdalena Valley ( MMV ). Notable exploration wells in the LMV include continuing operations at Natilla-2 ST2, which encountered approximately 550 ft TVD gross section of interbedded sandstone and shales within the Porquero with good reservoir quality as indicated by sonic and resistivity logs collected while drilling. Formation pressures across this section of the Porquero ranged from 12,500 13,500 psi based on the PWD (Pressure While Drilling) tool, indicating gas at very high pressure, and very high mud weights of up to 18.8 pounds per gallon while drilling were required to prevent the influx of gas into the wellbore. Despite the heavy mud weights used while drilling through this section of the Porquero, total measured gas confirmed that the sandstones are gas charged. Other notable exploration wells include the Ramsay-1 which is targeting a large 4 way closure within the CDO sandstone reservoir located close to the Nelson field which we plan to spud in the second quarter, and a group consisting of 3 exploration wells (Zamia, Borbon, and Monstera) targeting 3 separate prospects within the CDO sandstone reservoir located close to our Nispero gas field, the first of which we plan to also spud in the early second quarter. While a discovery at Natilla will take approximately 9 months to bring on production due to the need to build a 15 kilometer flow line, Ramsay, Zamia, Borbon, and Monstera can be quickly brought on production if successful due to their proximity to existing flowlines. The remaining 5 exploration wells are targeting smaller structures located close to existing infrastructure that can be commercialized rapidly if successful.
Over the last several years the Corporation has assembled a significant acreage position in the MMV, and this year we plan to drill the Valiente prospect targeting a large shallow structure located approximately 5 kilometers to the south and up dip of the Opon gas field discovered in 1965 by Cities Services and later developed by Amoco in 1997. The productive sandstone reservoirs within the Tertiary La Paz Formation at Opon reached a production peak of approximately 104 MMcfpd of gas and 3,790 barrels of condensate per day in 1998, and produced a total of 54 billion cubic feet of gas and 1.2 million barrels of condensate. Valiente-1 is planned to spud in early fourth quarter and will target the same productive sandstones of the La Paz Formation that were productive at Opon, but at considerably shallower depths.
The Corporation is also continuing its efforts with respect to the Pola exploration project located in the MMV. Pola is a large prospect targeting gas within Cretaceous aged reservoirs at depths of close to 17,000 feet. Given the relatively high cost of the well, the Corporation is currently evaluating its options with respect to how to proceed with the project.
In Bolivia the Corporation is awaiting ratification and formalization by congress of three exploration contracts (Arenales, Ovai, and Florida Este) and one field redevelopment contract (Tita) in order to establish the effective date of all four contracts. The Corporation is currently preparing to apply for the environmental permit for Tita, along with formulating development plans, in order to commence field reactivation activities in 2026.

Attachments

24.02.2025 - Canacol Energy Ltd. Provides 2025 Capital and Gas Sales Guidance.pdf
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