Canacol Energy announces three gas discoveries in Colombia

Canacol Energy, a natural gas exploration and production company with operations in Colombia, affiliated with the Colombian Association of Petroleum and Gas (ACP), provides information on three discoveries and its short-term drilling program:

Saxofón 1 – 338 feet of gross thickness gas container within the Porquero and Ciénaga de Oro reservoirs

Canacol began drilling the exploration well Saxofón 1, located in the Lower Magdalena Basin, on December 2, 2022. This well reached a total depth of 9,416 feet measured depth (md) on January 7, 2023, and found: a gross gas column of 290 feet true vertical depth (tvd) within the Porquero sandstone reservoir, between depths of 4,385 and 4,675 feet md; and a gross gas column of 48 feet tvd within the primary sandstone reservoir Ciénaga de Oro between 7,560 and 7,608 feet md. The well is currently being completed, and the Company plans to mobilize a workover rig to complete and test the Ciénaga de Oro reservoir. The development plan for Saxofón will include drilling additional evaluation and development wells once a new 3D seismic study over that area of the block is acquired by the end of 2023.

Dividivi 1 – 89 feet of gross thickness gas container within the Ciénaga de Oro and Cicuco reservoirs

The drilling of the exploration well Dividivi 1, located in the Lower Magdalena Basin, began on December 20, 2022. The well reached a total depth of 4,692 feet md on January 2, 2023, and found a gross gas column of 89 feet tvd within the primary sandstone reservoirs Ciénaga de Oro and limestone Cicuco between depths of 2,184 and 2,273 feet md. Canacol is currently conducting a flow test of the well in order to formulate a commercial development plan for the discovery, which is located approximately 35 kilometers west of the TGI pipeline, which currently has approximately 260 MMscfpd of available transportation capacity into Colombia.

Chimela 1 – 85 feet of net thickness oil and gas container within the Lisama reservoir

The Company began drilling the exploration well Chimela 1, located in the Magdalena Medio Basin, on November 13, 2022. This well reached a total depth of 14,101 feet md on December 16, 2022, and found multiple oil and gas bearing zones within the primary sandstone reservoirs Lisama Superior and Lisama Basal between depths of 12,410 and 13,694 feet md. Currently, Canacol is demobilizing the drilling rig and preparing to mobilize a workover rig to complete and test the well's production.

Natilla 1 – Sidetracking

The company drilled the exploration well Natilla 1 on December 1, 2022. This well targets gas-bearing sandstones within the Ciénaga de Oro and Porquero sandstone reservoirs; it was drilled to a depth of 11,848 feet md within the Porquero sandstone interval before encountering drilling-related issues. Currently, the well is being sidetracked, and the company anticipates reaching a planned total depth of 16,609 feet md within 6 weeks.

Short-term drilling program

Canacol plans to drill the exploration well Lulo 1, located less than 1 kilometer east of the Jobo production plant, in mid-March 2023. This targets gas-bearing sandstones of the Ciénaga de Oro sandstone reservoir. It is expected to take four weeks to drill and complete.