Canacol Energy Ltd. Provides Gas Sales and Drilling Update

CALGARY, Alberta, Sept. 09, 2020 (GLOBE NEWSWIRE) -- Canacol Energy Ltd. ("Canacol" or the "Corporation") (TSX:CNE; OTCQX:CNNEF; BVC:CNEC) is pleased to provide the following gas sales and drilling update.

Gas Sales

Realized contractual natural gas sales for the months of July and August 2020 averaged approximately 162 million standard cubic feet per day (“MMscfpd”). In addition to the realized contractual gas sales (which are essentially gas produced, delivered, and paid for) the Corporation saw an additional 8 MMscfpd of gas sales nominations throughout July and August, which must be paid for during the remainder of 2020 for which delivery timing is at the discretion of the off taker.

Porro Norte 1 Exploration well

VIM-5 E&P Contract

CNE Oil & Gas S.A.S , 100% Operated Working Interest  

Using the Pioneer 302 drilling rig, the Porro Norte 1 exploration well was spud on July 20th, 2020 and reached 11,810 feet measured depth on August 17th, 2020.  Significant over-pressure up to 13.7 ppg was accompanied by strong gas shows encountered over an 80 feet true vertical depth (“ft TVD”) interval while drilling the primary reservoir objective in the Cicuco limestones of the Cienaga de Oro Formation.  Based on wireline logs, the well encountered 24 ft TVD of potential gas pay within the Cicuco limestone, a new play type on the VIM5 block.  The well was suspended and will be tested with a workover rig at a later date.

Remaining 2020 Drilling Program

Canacol maintains 2 drilling rigs under contract, Pioneer 53, and Pioneer 302, and plans to drill 4 additional wells during the remainder of 2020.  The Pioneer 302 rig is currently mobilizing to drill the Fresa- 1 exploration, located close to the Corporations Jobo facility.  Fresa 1 is anticipated to spud in late September 2020.  Upon completion and testing of the Fresa 1 exploration well, the Rig 302 will be mobilized to drill the Flauta 1 exploration well, which is anticipated to spud in mid-November 2020.

Rig 53 will move to Pandereta 4 appraisal well after completing the Pandereta 8 development well.  Operations at Pandereta 8 have been delayed by an outbreak of Covid in the area.  After drilling and completing the Pandereta 4 appraisal well, RIG 53 will be mobilized to drill the Siku-1 exploration well, which is expected to spud in mid-December 2020.

Canacol Energy is a 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.

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", "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.  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.

Realized contractual gas sales is defined as gas produced and sold plus gas revenues received from nominated take or pay contracts.