Canacol Energy Ltd. Provides Corporate Update
May 27 2024 - 3:30PM
Canacol Energy Ltd. ("Canacol" or the "Corporation") (TSX: CNE;
OTCQX: CNNEF; BVC: CNEC) is pleased to provide the following update
regarding scheduled interest payment, termination of Fitch Ratings
coverage, and exploration drilling program.
Interest Payment
On May 24, 2024, Canacol paid its scheduled
semi-annual interest payment of US $14.375 million on its November
2028 Senior Notes.
Rating Agency Update
On Tuesday, May 21, 2024, the Corporation
informed Fitch Ratings that it was terminating its contract for the
provision of ratings coverage. The Corporation retains the services
of both Moody’s and S&P Ratings.
Cardamomo-1 Exploration
Well
The Corporation is preparing to drill the
Cardamomo-1 exploration well located in the northern part of its
100% operated VIM-5 Exploration and Production (“E&P”) contract
situated approximately 25 kilometers to the north of its Jobo gas
processing facility. The Cardamomo-1 exploration well will target
potential gas bearing sands within the Cienaga de Oro (“CDO”)
reservoir, in a large well defined structural closure identified on
the Redoblante 3D seismic survey acquired in 2023. Similar to all
of the other large discoveries the Corporation has made in the
past, including the Clarinete, Nelson, Aguas Vivas, and Pandereta
gas fields, the Cardamomo prospect exhibits a well-defined AVO
attribute, a seismic characteristic commonly associated with the
presence of gas within the CDO reservoir. The Corporation plans to
spud the well in late July 2024, and anticipates that it will take
3 to 4 weeks to drill and complete the well. Given success, the
Cardamomo field will be tied into the Alboka flowline located
approximately 12 kilometers to the south.
The Cardamomo prospect is one of 14 CDO
exploration prospects identified on the newly acquired Redoblante
3D seismic survey, and should it prove successful will open up a
new productive gas area for the Corporation within the northern
part of the VIM-5 E&P contract.
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
www.canacolenergy.com
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