An anonymous director reports

CANACOL ENERGY LTD. ENCOUNTERS 230 FEET OF NET GAS PAY IN THE LULO 2 WELL AND PROVIDES A GAS SALES UPDATE

Canacol Energy Ltd. has provided the following information concerning the Lulo 2 well and May, 2023, natural gas sales.

May gas sales of 189 million standard cubic feet per day

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

Lulo 2 encounters 230 feet of net gas pay

The Lulo 2 appraisal well, located on the 100 per cent 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 per cent 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 50 metres 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 Pina Norte 1 exploration well, located approximately 300 metres to the southwest of the Jobo production facility. Pina Norte 1 is also located on the 100-per-cent-operated VIM21 E&P contract. The Pina Norte prospect, like Lulo, is one of five exploration prospects targeting the middle and lower CDO sandstone reservoir at depths of approximately 9,000 feet, located 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.

Pina Norte 1 will be followed by the drilling of the Cereza 1 exploration well located approximately one kilometre to the north of the Jobo production facilities.

The corporation is currently drilling the Clarinete 8 development well located on its 100-per-cent-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 Nino season in the second half of 2023, when gas demand is anticipated to be high.

About Canacol Energy Ltd.

Canacol is a natural gas exploration and production company with operations focused in Colombia.

We seek Safe Harbor.