Canacol Energy Ltd. Provides Gas Sales and Drilling Update CALGARY, ALBERTA – (August 3, 2023) - Canacol Energy Ltd. ("Canacol" or the "Corporation") (TSX:CNE; OTCQX:CNNEF; BVC:CNEC) is pleased to provide the following gas sales and drilling operations update. July Gas Sales of 197 MMscfpd 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 Piña 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 Niño phenomena. The Corporation spud the Piña Norte 1 exploration well located on its 100% operated VIM21 Exploration and Production (“VIM 21 E&P”) contract on June 26, 2023. The well is located approximately 500 meters to the west of the Jobo production facility. The well encountered an over pressured zone in a very shallow reservoir and due to drilling difficulties had to be plugged and abandoned. The twin offset Piña 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 Piña 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 kilometers 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% operated VIM 21 E&P contract. The well is located approximately 500 meters 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 4 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% 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.

 

 Best Rgds,

R ................Been wondering about recent share price strength so

                     perhaps 4 rigs plowing the 100%VM21 Field close to the

                    JOBO barn is the reason.