General Announcement::Canacol Energy Ltd. Encounters 230 Feet of Net Gas Pay in the Lulo 2 Well

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
06-Jun-2023 20:00:21
Status
New
Announcement Sub Title
Canacol Energy Ltd. Encounters 230 Feet of Net Gas Pay in the Lulo 2 Well
Announcement Reference
SG230606OTHRFOMV
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. Encounters 230 Feet of Net Gas Pay in the Lulo 2 Well and Provides a Gas Sales Update

CALGARY, ALBERTA (June 6, 2023) - Canacol Energy Ltd. ("Canac ol" or the "Corporation") (TSX:CNE; OTCQX:CNNEF; BVC:CNEC) is pleased to provide the following information concerning the Lulo 2 well and May 2023 natural gas sales.

May Gas Sales of 189 MMscfpd

Realized contractual natural gas sales (which are gas produced, delivered, and paid for) were 189 million standard cubic feet per day for May 2023.

Lulo 2 encounters 230 feet of net gas pay

The Lulo 2 appraisal well, located on the 100 percent operated VIM21 Exploration and Production ( E&P ) contract, reached total depth of 7,112 feet measured depth on June 1, 2023. The well encountered 230 feet true vertical depth of net gas pay with average porosity of 20 percent within the primary Cienaga de Oro ( CDO ) sandstone reservoir.

The Corporation is preparing to case and complete the well and will then tie it directly into permanent production via the Jobo gas treatment facility located only fifty meters from the Lulo drilling platform.

Near term drilling plans

After completion of the Lulo 2 well the Corporation will mobilize the rig to commence drilling of the Pi a Norte 1 exploration well, located approximately 300 meters to the southwest of the Jobo production facility. Pi a Norte 1 is also located on the 100 percent operated VIM21 E&P contract. The Pi a Norte prospect, like Lulo, is one of 5 exploration prospects targeting the Middle and Lower CDO sandstone reservoir at depths of approximately 9,000 feet located within very close proximity to the Corporations main production facilities at Jobo. If successful, as is the case for Lulo, these near field exploration prospects can each provide new commercial production within weeks of discovery. The Corporation expects results from Pi a Norte 1 by mid-July 2023.

Pi a Norte 1 will be followed by the drilling of the Cereza 1 exploration well located approximately 1 kilometer to the north of the Jobo production facilities.

The Corporation is currently drilling the Clarinete 8 development well located on its 100% operated VIM5 Exploration and Exploitation Contract. Clarinete 8 is expected to be completed and tied into permanent production by the end of June 2023.

Canacol s current drilling program is focused on adding extra natural gas production capacity that will be available to consumers ahead of the El Ni o season in the second half of 2023 when gas demand is anticipated to be high.

Attachments

06.06.2023 - Canacol Energy Ltd Encounters 230 Feet of Net Gas Pay in the Lulo 2 Well and Provides a Gas Sales Update.pdf
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