An anonymous director reports

CANACOL ENERGY LTD. PROVIDES GAS SALES AND DRILLING UPDATE

Canacol Energy Ltd. is offering a gas sales and drilling operations update.

October gas sales of 170 million cubic feet per day

Realized contractual natural gas sales (which are gas produced, delivered and paid for) were 170 million standard cubic feet per day for October, 2023. As previously announced, 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 has since executed a number of successful remedial measures and is finalizing other ones in order to bring production back to normal levels by the end of November. The corporation continues to expect that it will be able to make up lost sales volumes by year-end and meet its average production and financial targets and therefore reiterates that it does not expect this situation to have a material impact on its overall operations and results for the year.

Near-term drilling program

The corporation completed the drilling of the Pandereta 9 and Nelson 15 development wells, which encountered 134 and 138 feet true vertical depth of net gas pay within the main Cienaga de Oro sandstone target. The wells are currently being tied into the Jobo gas treatment facility and will both be on production within one week.

The corporation anticipates spudding the Pandereta 10 development well within one week, which will be followed by the Clarinete 10 development well to be completed prior to the end of 2023.

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 of America, and the Colombia Stock Exchange under ticker symbol CNE, CNNEF and CNEC, respectively.

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