CALGARY, Alberta, Aug. 03, 2023 (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 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.

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 CNEC, respectively.

Forward-Looking 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", "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.

For more information please contact:

Investor Relations
South America: +571.621.1747 IR-SA@canacolenergy.com
Global: +1.403.561.1648 IR-GLOBAL@canacolenergy.com