CANACOL ENERGY LTD - CNNEF STOCK NEWS

Canacol Energy Ltd. (CNNEF) reported average natural gas sales of 189 MMscfpd for March 2022. The company is currently drilling the Chirimia 1 sidetrack well to restore production from the Cienaga de Oro sandstone reservoir, aiming for completion by mid-April 2022. Following this, the rig will proceed to drill the Cornamusa 1 exploration well, which targets potential gas-bearing sandstones. The drilling operation is expected to take approximately 5 weeks to complete and test.

Canacol Energy Ltd. reported positive financial results for Q4 and the year ended December 31, 2021. Natural gas sales volumes grew by 10% to 185.9 MMscfpd, contributing to a 10% revenue increase to $67 million in Q4. Adjusted funds from operations rose 24% to $43.7 million. Net income surged to $7 million compared to $0.9 million in Q4 2020, mainly due to reduced deferred tax expenses. However, total debt increased by 34% to $557.7 million. Natural gas reserves showed a decrease in conventional natural gas volumes, with a 4.8% drop in proved plus probable reserves to 607 Bcf.

Canacol Energy Ltd. (CNNEF) declared a dividend of CAD $0.052 per share, payable on April 19, 2022, to shareholders on record by March 31, 2022. This dividend is classified as an 'eligible dividend' for Canadian tax purposes. The Board of Directors retains discretion over future dividends. Payments for shares on the Toronto Stock Exchange will be in Canadian Dollars, while those on the Colombia Stock Exchange will be calculated based on the certified exchange rate. Shareholders are advised to complete Form NR301 to benefit from reduced withholding tax rates.

Canacol Energy Ltd. reported an average natural gas sales of 188 MMscfpd for February 2022. The company announced the cased gas discovery from the Carambolo 1 well and is mobilizing a drilling rig to conduct a sidetrack at Chirimia 1, aiming to restore production from the Cienaga de Oro sandstone reservoir. Additionally, Canacol executed a normal course issuer bid, repurchasing 5,307,700 shares at CAD$ 3.15 each in January 2022, which may enhance shareholder value.

Canacol Energy Ltd. will announce its Q4 and fiscal year 2021 financial results on March 17, 2022, post-market closure. A conference call for discussing these results is scheduled for March 18, 2022, at 8:00 a.m. MST / 10:00 a.m. ET. Investors can join via dial-in or webcast. Detailed financial results will be accessible through the Investor Relations section of Canacol's website, with a replay available until March 25, 2022. This press release contains forward-looking statements subject to risks and uncertainties.

Canacol Energy Ltd. reported its January 2022 natural gas sales, averaging 170 MMscfpd. The Toronja 2 development well, spud on January 17, encountered 29 feet of net gas pay and was placed on permanent production. A drilling rig is set to mobilize for the Carambolo 1 exploration well, expected to take about four weeks. Additionally, during January, Canacol repurchased 5,307,700 shares at CAD$ 3.15 each under its normal course issuer bid. Management believes the shares are trading at a significant discount to their net asset value.

Canacol Energy Ltd. (OTCQX: CNNEF) reported average natural gas sales of 183 MMscfpd for December 2021. The Clarinete 6 development well, spud in early December, encountered 174 feet of net gas pay and has commenced permanent production. The company is advancing its drilling program with the Toronja 2 development well expected to be completed in late January, followed by the Carambolo 1 exploration well in February. Additionally, Canacol repurchased 369,800 shares in December 2021, continuing its normal course issuer bid.

Canacol Energy Ltd. announced its 2022 capital budget, ranging from $172 million to $209 million, fully funded by existing cash and projected cash flows. The company anticipates gas sales volumes between 160 and 200 million standard cubic feet per day (MMscfpd), with an average wellhead sales price of approximately $4.61/Mcf. Key objectives include drilling up to 12 wells to achieve a reserves replacement ratio over 200%, expanding seismic acquisition, and progressing its Jobo to Medellin pipeline project to enhance gas supply. Canacol aims to maintain dividends and continues its share buyback program.

Canacol Energy Ltd. has announced a dividend of CAD$0.052 per share, scheduled for payment on January 17, 2022, to shareholders recorded by December 30, 2021. This dividend qualifies as an 'eligible dividend' for Canadian tax purposes. Shareholders trading on the Toronto Stock Exchange will receive payments in Canadian Dollars. For those on the Colombia Stock Exchange, the dividend's Colombian peso equivalent will be determined by the exchange rate from the Central Bank. Shareholders should ensure proper tax documentation to manage withholding rates.