An anonymous director reports

CANACOL ENERGY LTD. PROVIDES GAS SALES AND DRILLING UPDATE

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

August gas sales of 178 MMscfpd

Realized contractual natural gas sales (which are gas produced, delivered and paid for) were 178 million standard cubic feet per day for August, 2023.

Commencing the second week of August, 2023, the corporation experienced unusual and unexpected production capacity restrictions at some of its gas fields as a result of issues at the Jobo gas treatment facility as well as certain of its producing wells. As a result of the foregoing the corporation has had to restrict gas deliveries under certain supply contracts dedicated to supplying non-essential gas demand, all in accordance with applicable Colombian regulations and in consultation with the relevant authorities. The corporation is presently working on remediating this short-term disruption and expects to have production back to normal levels shortly.

Near-term drilling program

The corporation spudded the Cereza 1 exploration well on Aug. 9, 2023, and reached a total depth of 7,650 feet measured depth on Aug. 20, 2023. The well encountered non-commercial quantities of gas within the Cienaga de Oro (CDO) sandstone reservoir and was plugged and abandoned.

The corporation is currently drilling the Fresa 2 appraisal well targeting sandstones of the CDO reservoir that are productive in the offsetting Fresa 1 exploration well drilled in 2021. The corporation anticipates completing the drilling of the well within the next two weeks.

Two drilling rigs are currently being mobilized to drill the Agua Vivas 4 and Pandereta 9 development wells, with expected spud dates of the second week of September, 2023, and the first week of October, 2023, respectively. Both are infill development wells, and each will take approximately four weeks to drill and complete.

The corporation is focusing on infill development drilling and workover opportunities to meet anticipated high gas demand during the El Nino season which is anticipated to start in fourth quarter 2023. The company will return to exploration drilling prior to year-end.

About Canacol Energy Ltd.

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

We seek Safe Harbor.