Aguas Vivas 2 Appraisal Well Encounters 229 Feet of Net Gas Pay

Source: 8/2/2021, Location: South America

Canacol Energy Ltd. is pleased to provide the following information concerning its July 2021 natural gas sales, the Aguas Vivas appraisal drilling program, and the Corporations share buy back program.

Gas sales averaged 190 MMscfpd for July 2021
Realized contractual natural gas sales (which are gas produced, delivered, and paid for) were 190 million standard cubic feet per day (“MMscfpd”) for July 2021, up from 175 MMscfpd in June 2021.

Aguas Vivas 2 appraisal well encounters 229 feet of net gas pay
The Aguas Vivas 2 appraisal well was spud on June 12, 2021 and reached a total depth of 8,728 feet measured depth on July 27, 2021. Drilling operations were suspended for approximately one month due to covid restrictions and the effects of the national strike. The well encountered 229 feet true vertical depth of net gas pay with an average porosity of 24% within the Cienaga de Oro sandstone reservoir, thus confirming a significant gas discovery at Aguas Vivas. The Corporation is currently casing the well in preparation of tying the well into permanent production. Upon completion of the Aguas Vivas 2 well the Corporation plans to immediately spud the Aguas Vivas 3 appraisal well to continue proving up the extent of this significant new gas discovery.

Normal course issuer bid
On May 25, 2021, the Corporation began actively buying its shares back for cancellation under the terms of its Toronto Stock Exchange-approved normal course issuer bid and automatic share purchase program, which limits the maximum daily share purchases to 60,132 shares per day as outlined in a Dec. 21, 2020, press release. During the period July 1 to July 31, 2021, the Corporation repurchased 980,000 shares at an average price of $3.26 per share. Since May 25 2021 the Corporation has repurchased a total of 2,060,000 shares at an average price of $3.31 per share.

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