An anonymous director reports

CANACOL ENERGY LTD. TESTS 22 MMSCFPD FROM LULO 1, DRILLING LULO 2 APPRAISAL WELL

Canacol Energy Ltd. has provided the following information concerning the new Lulo 1 gas discovery and near-term drilling plans.

Lulo 1 tests 22 million standard cubic feet per day

As announced on May 3, 2023, the Lulo 1 exploration well, located on the 100-per-cent-operated VIM21 exploration and production (E&P) contract, encountered 207 feet of net gas pay within the Cienaga de Oro (CDO) sandstone reservoir.

Lulo 1 was permanently tied in and production tested through the Jobo gas processing facilities located 50 metres away at an average rate of approximately 17 million standard cubic feet per day for seven days. The well was tested at various rates ranging from 3.9 million standard cubic feet per day to 22.2 million standard cubic feet per day, with the choke varying between 19/128ths inch and 39/128ths inch and a final tubing head pressure of 2,042 pounds per square inch at the rate of 22.2 million standard cubic feet per day and is currently producing at a controlled rate of approximately 17 million standard cubic feet per day.

Lulo 2 drilling ahead

The corporation commenced drilling of the Lulo 2 appraisal well on May 17, 2023, with the well anticipated to be completed and placed on production by the end of May, 2023. It is anticipated that, should Lulo 2 prove successful, the Lulo discovery, announced on May 3, 2023, will be capable of producing at a total rate of between 30 million standard cubic feet per day and 40 million standard cubic feet per day by early June, 2023.

Near-term exploration plans

Upon completion of the Lulo 2 well, the corporation will mobilize the rig to commence drilling of the Pina Norte 1 exploration well, located approximately 300 metres to the southwest of the Jobo production facility. The Pina Norte prospect, like Lulo, is one of five exploration prospects identified within the middle to lower CDO sandstone reservoir within very close proximity to the corporation's 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 Pina Norte 1 by mid-July, 2023, following which the corporation plans to drill the Cereza 1 exploration well, located approximately one kilometre to the north of the Jobo production facility.

Canacol's near-term drilling focus is to increase productive capacity ahead of the coming El Nino season to ensure the adequate supply of natural gas to the Caribbean market.

About Canacol Energy Ltd.

Canacol is a natural gas exploration and production company with operations focused in Colombia. The corporation's common stock trades on the Toronto Stock Exchange, on the OTCQX in the United States and on the Colombia Stock Exchange under ticker symbols CNE, CNNEF and CNEC, respectively.

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