An anonymous director reports

CANACOL ENERGY LTD. ANNOUNCES REVISED 2024 CAPITAL PROGRAM, COMMENTS ON 2024 GUIDANCE AND PROVIDES DRILLING UPDATE

Canacol Energy Ltd. has revised its 2024 capital program, commented on 2024 guidance and provided a drilling update.

Revised 2024 capital program

The corporation has revised its capital program to now drill a total of 11 wells in 2024, with an estimated capital spend of $138-million. The 11-well program includes five exploration wells and six development/appraisal wells. Canacol's original 2024 capital budget, as announced on Feb. 5, 2024, had included a range of $138-million (four exploration wells and three development/appraisal wells) to $151-million (four exploration wells and five development/appraisal wells). Drilling program efficiency initiatives have contributed significantly to planning for increased drilling activity without increases in total capital program costs.

The corporation currently anticipates 2024 EBITDA (earnings before interest, taxes, depreciation and amortization) to be in the mid to higher range of its previously announced guidance of $250-million to $290-million, with its natural gas and oil sales volumes anticipated to average approximately 167 million cubic feet equivalent per day.

The revised 2024 capital program has been designed to achieve corporate production and reserve addition targets. To date the corporation has drilled six wells, which include five successful wells that are currently on production (Clarinete-10, Pomelo-1, and Chontadura-1, 2 and 3) and the unsuccessful Cardamomo-1 well.

Cardomomo 1 exploration well

The Cardomomo 1 exploration well, located on the VIM5 exploration and production (E&P) contract, was drilled to a total depth of 11,591 feet measured depth targeting the Cienaga de Oro formation. The well encountered 203 feet true vertical depth of net porous sandstones within the CDO with non commercial amounts of natural gas. The Cardomomo 1 well has now been abandoned.

Go forward drilling program

For the remainder of 2024, the corporation plans to drill three appraisal wells in producing gas fields and two exploration wells.

The Nispero 2 appraisal well will target gas-bearing sandstones of the CDO formation within the Nispero gas field which the corporation discovered in 2016. The corporation anticipates spudding the well in early October, 2024, with the well entering production in late October, 2024.

The Natilla 2 exploration well is targeting a large natural gas prospect within the SSJN7 E&P contract. The primary target of the Natilla 2 exploration well are sandstones of the CDO formation, with secondary sandstone targets in the overlying Porquero formation. The corporation anticipates spudding Natilla 2 in early October, 2024, and anticipates that the well will take approximately two months to drill.

The Siku 2 appraisal well will target gas-bearing sandstones within the CDO formation in the Siku and Oboe gas fields, which the corporation discovered in 2016. The corporation anticipates spudding the well in early November, 2024, with the well entering production in late November, 2024.

The Kite 1 exploration well is targeting sandstones of the CDO formation in a prospect located between the Palmer gas field discovered in 2014 immediately to the south and the Pomelo and Chontaduro gas fields discovered in early 2024 immediately to the north. The corporation anticipates spudding the well in early October, 2024, with results by late October, 2024. If successful, the Kite 1 well will be immediately tied into production.

The Lulo 3 appraisal well is targeting gas-bearing sandstones of the CDO formation within the Lulo gas field discovered in early 2023. The corporation anticipates spudding the well in early December, 2024, with the well entering production in late December, 2024.

About Canacol Energy Ltd.

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

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