Canacol Energy Ltd Provides Exploration Drilling Update

CALGARY, Alberta, July 14, 2025 (GLOBE NEWSWIRE) -- Canacol Energy Ltd. (“Canacol” or the “Corporation”) (TSX: CNE; OTCQX: CNNEF; BVC: CNEC) provides the following update concerning its current drilling activities and results.

Natilla-2 ST3 Exploration Well (SSJN-7 Exploration and Production contract, 100% Working Interest)

Natilla-2 ST3 reached a total depth of 15,616 feet true vertical depth (“ft TVD”) near the base of the Porquero Formation (“Porquero”), the planned intermediate casing point of the well situated just above the underlying Cienega de Oro (“CDO”) sandstone primary target. The well encountered the same over pressured gas charged Porquero sand intervals that were present in Natilla ST 1 and 2. After drilling to the intermediate casing depth of 15,750 feet measured depth (“ft MD”) without issues, a hole cleaning trip was conducted prior to running casing. During the hole cleaning trip, increased well bore instability and pressures were encountered that ultimately resulted in temporarily abandoning the well.

The rig has been released as a forward plan is being prepared to evaluate options for re-entering the current well or drilling a new Natilla-3 well targeting the gas charged sandstones encountered in the various sidetracks of the Natilla-2 well. The new drilling plan will incorporate drilling techniques to address the difficulty in running production liner across the over pressured gas charged sands encountered in the Porquero, and once addressed, continuing to deepen the well to the primary CDO sandstone reservoir target.

Borbon-1 Exploration Well (VIM-44 Exploration and Exploitation Contract, 100% Working Interest)

The Borbon-1 exploration well was spud on June 13, 2025, and reached a total depth of 10,751 ft MD on June 22, 2025. The well encountered 157 ft TVD of gas pay with an average porosity of 18 % within the primary CDO sandstone reservoir target. The well was cased and completed and will be brought on to production in early August 2025 once the flowline connecting the Sucre Norte platform, from which the Borbon, Zamia, and Palomino exploration wells are located, has been tied into the Jobo gas processing facility. Initial production from the well is anticipated to be 10 to 12 million standard cubic feet per day (“MMscfpd”) based on the performance of offsetting producing CDO wells.

Zamia-1 Exploration Well (VIM-5 Exploration and Exploitation Contract, 100% Working Interest)

The Zamia-1 exploration well was spud on May 24, 2025, and reached a total depth of 11,454 ft MD on June 4, 2025. The well encountered 32 ft TVD of gas pay with an average porosity of 22% within the primary CDO sandstone reservoir target. The well was cased and completed and will be brought on production in early August 2025 once the flowline connecting the Sucre Norte platform has been tied into the Jobo gas processing facility. Initial production from the well is anticipated to be 8 to 10 MMscfpd based on the performance of offsetting CDO producing wells.

Palomino-1 Exploration Well (VIM-44 Exploration and Exploitation Contract, 100% Working Interest)

The Palomino-1 exploration well is expected to spud within the next week and is targeting gas charged sands of the CDO reservoir in a prospect located approximately 2 kilometers to the south of the Borbon discovery. The Corporation anticipates that the well will take approximately 3 weeks to drill and complete. If successful, the well will be brought onto production via the flowline connecting the Sucre Norte platform to the Jobo gas processing facility.

Fresa-4 Appraisal Well (VIM-21 Exploration and Exploitation Contract, 100% Working Interest)

The Fresa-4 well was spud on June 30, 2025, and is targeting gas charged sandstones within the CDO reservoirs located approximately 1 kilometer up dip and to the northwest of the recently drilled Fresa 3 appraisal well, which is producing approximately 10 MMscfpd. The Corporation anticipates that the well will take approximately 3 weeks to drill, after which it will be brought onto production immediately via the existing connection between the platform and the Jobo gas processing facility.

About Canacol

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 CNE.C, respectively.

Forward-Looking Information and Statements

This press release contains certain forward-looking statements within the meaning of applicable securities law. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “target”, “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur, including without limitation statements relating to estimated production rates from the Corporation’s properties and intended work programs and associated timelines. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Corporation cannot assure that actual results will be consistent with these forward looking statements. They are made as of the date hereof and are subject to change and the Corporation assumes no obligation to revise or update them to reflect new circumstances, except as required by law. Information and guidance provided herein supersedes and replaces any forward-looking information provided in prior disclosures. Prospective investors should not place undue reliance on forward-looking statements. These factors include the inherent risks involved in the exploration for and development of crude oil and natural gas properties, the uncertainties involved in interpreting drilling results and other geological and geophysical data, fluctuating energy prices, the possibility of cost overruns or unanticipated costs or delays and other uncertainties associated with the oil and gas industry. Other risk factors could include risks associated with negotiating with foreign governments as well as country risk associated with conducting international activities, and other factors, many of which are beyond the control of the Corporation. Other risks are more fully described in the Corporation’s most recent Management Discussion and Analysis (“MD&A”) and Annual Information Form, which are incorporated herein by reference and are filed on SEDAR at Average production figures for a given period are derived using arithmetic averaging of fluctuating historical production data for the entire period indicated and, accordingly, do not represent a constant rate of production for such period and are not an indicator of future production performance. Detailed information in respect of monthly production in the fields operated by the Corporation in Colombia is provided by the Corporation to the Ministry of Mines and Energy of Colombia and is published by the Ministry on its website; a direct link to this information is provided on the Corporation’s website.