An anonymous director reports

CANACOL ENERGY LTD. PROVIDES GAS SALES AND DRILLING UPDATE

Canacol Energy Ltd. has provided a gas sales and drilling operations update.

July gas sales of 197 MMscfpd (million standard cubic feet per day)

Realized contractual natural gas sales (which are gas produced, delivered, and paid for) were 197 million standard cubic feet per day for July, 2023.

Drilling program

Canacol's near-field exploration program includes the successful Lulo discovery, as well as the Pina Norte, Cereza and Mafaldine prospects. The program is targeting exploration prospects within the proven Cienaga de Oro sandstone reservoirs located close to the Jobo production facility that can be commercialized very quickly, allowing the corporation to build productive capacity in order to meet the anticipated high demand for gas associated with the upcoming El Nino phenomena.

The corporation spudded the Pina Norte 1 exploration well located on its 100-per-cent-operated VIM21 exploration and production (VIM21 E&P) contract on June 26, 2023. The well is located approximately 500 metres to the west of the Jobo production facility. The well encountered an overpressured zone in a very shallow reservoir and due to drilling difficulties had to be plugged and abandoned. The twin offset Pina Norte 2 exploration well was spud on July 18, 2023, and is currently drilling ahead. The corporation anticipates completing the well within the next two weeks.

Upon completion of the Pina Norte 2 well, the drilling rig will be mobilized to drill the Mafaldine exploration well, also located on the VIM 21 E&P contract and situated approximately 1.5 kilometres to the northwest of the Jobo production facility.

A second rig is being mobilized to drill the Cereza 1 exploration well also located on its 100-per-cent-operated VIM 21 E&P contract. The well is located approximately 500 metres to the north of the Jobo production facility. The well is anticipated to spud the second week of August, 2023, and is targeting gas charged sands of the Cienaga de Oro reservoir. The well will take approximately four weeks to drill and complete.

A third rig is being mobilized to drill the Aguas Vivas 4 development well which is also located on its 100-per-cent-operated VIM 21 E&P contract. The well is anticipated to spud the third week of August, 2023, and is targeting the CDO reservoir within the Aguas Vivas field.

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, the OTCQX in the United States and the Colombia Stock Exchange under ticker symbol CNE, CNNEF and CNEC, respectively.

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