An anonymous director reports

CANACOL ENERGY LTD. PROVIDES GAS SALES AND OPERATIONS UPDATE

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

Gas sales

Realized contractual natural gas sales for the fourth quarter of 2019 averaged approximately 180 million standard cubic feet per day (MMscfpd), a 23-per-cent increase compared with the 146 MMscfpd in gas sales for the third quarter of 2019.

Sales from Dec. 1, 2019, to Jan. 18, 2020, have averaged approximately 208 MMscfpd as certain scheduled long-term take or pay sales contracts came into effect on Dec. 1, 2019.

Drilling and operations

Using the Pioneer 53 drilling rig, the 2020 drilling campaign commenced with the spud of development location, Nelson 14, on Jan. 11, 2020. The well is presently drilling ahead at 6,500-foot measured depth, and once completed will be tied into the Nelson field's gathering system via the Betania substation. The drilling rig will mobilize to Clarinete 5 with anticipated spud in mid-February, 2020. Thereafter, six exploration and appraisal wells are scheduled to be drilled in a continuous program commencing with Fresa 1 followed by Porro Norte 1.

The corporation plans to drill a total of 12 exploration, development and appraisal wells in 2020. Eight of the 12 wells are planned to be drilled with the Pioneer 53 drilling rig. The corporation is currently negotiating a second drilling rig which will commence the drilling of four exploration wells commencing in May, 2020.

During Q4 2019 the corporation closed the sale of its operated Rancho Hermoso oil field to a local Colombian operator, marking its exit from the business of conventional oil production and exploration.

Canacol is an exploration and production company with operations focused in Colombia.

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