Mr. Richard Walls of C&C reports

C&C ENERGIA LTD. PROVIDES OPERATIONAL UPDATE ON CACHALOTE-1 WELL, ANDAQUIES BLOCK, COLOMBIA

C&C Energia Ltd. has finished the completion and testing of the Neme formation in the Cachalote-1 well in Colombia and will abandon the well. The Cachalote-1 well encountered 271 feet of Neme sandstone that contained oil shows over an interval of approximately 130 feet with average porosity of 21 per cent. The Neme reservoir was perforated in the interval from 5,676 feet to 5,718 feet and between 5,642 to 5,660 feet and, on a swab test, flowed from the lower perforations traces of oil with a gravity of 13.8-degree API and freshwater at a rate of 1,280 barrels per day. The upper perforations tested traces of oil and 1,020 barrels of freshwater per day.

The data collected from the test of Cachalote-1 indicate that the oil recovered from these excellent reservoirs most likely represents a residual oil accumulation in a structure that has been either breached or flushed by freshwater. The Cachalote-1 well is the first exploration well on the Andaquies block (114,875 gross acres) located in the northern Putumayo basin in Colombia. C&C has a 64-per-cent working interest and is the operator.

C&C and its partner Canacol Energy Ltd. plan to move the drilling rig at Cachalote-1 in the coming days to the Tardigrado prospect located on the northern portion of the Andaquies block and spud the Tardigrado-1 well within two to three weeks. The Tardigrado prospect is a three-way structural closure against a fault with potential in the Neme and Caballos formations.

We seek Safe Harbor.