An anonymous director reports

CANACOL ENERGY LTD. PROVIDES DRILLING OPERATIONS UPDATE

Canacol Energy Ltd. is providing the following update concerning its continuing drilling and testing operations in Colombia.

LLA23 exploration and production contract (Llanos basin -- Canacol operated)

The Pantro 2 exploration well encountered oil pay within the C7, Gacheta and Ubaque sandstone reservoirs, with good oil shows encountered while drilling through the reservoir intervals. The corporation is testing 26 feet of net oil pay in the C7 sandstone reservoir, which is currently producing 848 barrels of oil per day gross (763 barrels of oil per day net) of 35-degree API oil with 5-per-cent water cut using an electro-submersible pump set to a frequency of 40 hertz during a 14-day flow period. The corporation plans to leave the Pantro 2 appraisal well on long-term production test from the C7 sandstone reservoir, subject to approval by the Agencia Nacional de Hidrocarburos.

The corporation has completed the drilling of the Pointer 1 exploration well with good oil shows encountered while drilling through the primary reservoir targets and has run casing in advance of production testing several different oil-bearing sandstone reservoir intervals within the next week. The corporation has spudded the Tigro 1 exploration well and anticipates reaching total depth within one week. Canacol plans to drill an additional six wells on LLA23 throughout the remainder of calendar 2014, which includes the Maltes 1 exploration well, subject to approval by the ANH.

Santa Isabel exploration and production contract (Middle Magdalena basin -- Canacol operated)

The Oso Pardo 2 exploration well encountered 149 feet of net potential oil pay within the Tertiary Umir and Basal Lisama sandstone reservoirs, with excellent oil and gas shows encountered while drilling through both reservoir intervals. The corporation plans to complete production tests within both the Umir and Basal Lisama sandstones within the next two weeks.

The corporation plans to spud the Oso Pardo 3 exploration well in mid-September, 2014, subject to the approval of the ANH. The Oso Pardo 3 exploration well will target production from the Umir sandstone reservoir. Based upon the positive results achieved by the Morsa 1 and Oso Pardo 2 exploration wells, the corporation plans to drill an additional exploration well, Hambron 1, prior to year-end calendar 2014 subject to the approval of the ANH.

Esperanza exploration and production contract (Lower Magdalena basin -- operated by Geoproduction Oil and Gas Co. of Colombia, 100 per cent owned by Canacol)

The Palmer 1 exploration well reached a total depth of 9,317-foot measured depth and encountered 87 feet of potential gas pay within the primary target of the Cienaga de Oro sandstone reservoir, with excellent gas shows encountered while drilling through the primary reservoir target. Canacol is planning to commence production testing of the Cienaga de Oro reservoir within the next three days. Upon the completion of the testing at Palmer 1, the corporation plans to spud the second of three planned exploration wells targeting the Cienaga de Oro reservoir, Corozo 1, in early October, 2014, subject to approval by the Agencia Nacional de Hidrocarburos. The corporation plans to commence the drilling of the third exploration well, Canandonga 1, in December, 2014.

The corporation will provide updates when relevant information becomes available.

We seek Safe Harbor.