Canacol Energy Ltd. Provides Jobo to Medellin Pipeline Project Update, Proposes Share Consolidation, Canadian Business Journal

CALGARY, Alberta, Oct. 24, 2022 (GLOBE NEWSWIRE) — Canacol Energy Ltd. (“Canacol” or “Corporation”) (TSX:CNE; OTCQX:CNEF; BVC:CNEC) has announced that it has formed the consortium Shanghai Engineering and Technology Corp. (“SETCO”) to build a gas pipeline 289 kilometers long and 22 inches in diameter from the Jobo gas processing facility to the city of Medellin.

Canacol President and CEO Charle Gamba said: Inland Colombia’s customers will need to help ensure clean energy sources to their customers as Colombia implements a transition to less polluting energy sources, as the Ecopetrol gas fields located there begin to decline in 2024. I am happy to play an important role. ”

SETCO is a China-based construction and pipe manufacturing consortium with experience in building major gas pipelines in Asia and the Middle East. Under the terms of the agreement, SETCO will be responsible for paying his 100% of the pipeline construction costs and will own, operate and maintain the pipeline. The Corporation will not own or pay any portion of the costs associated with any pipeline project, including construction and operation. The Corporation’s sole liability under the contract is limited to entering into a transportation contract in which the Corporation pays a fixed price for a certain amount of gas over a period of time. The Company has already executed two 12-year take or pay gas sales contracts totaling 75 million standard cubic feet per day (“MMscfpd”) through pipelines to Medellin and is currently undertaking additional long-term take or pay gas sales contracts. We are negotiating a pay gas distribution agreement. With the internal customer to ensure the new pipeline is filled to his 100 MMscfpd initial capacity. The pipeline he plans to begin operations in December 2024. The company currently has a capacity of about 250 MMscfpd and before the pipeline is put into service, it is expected that the drilling of additional wells and the execution of additional infrastructure will increase its capacity to over 300 MMscfpd. I expect.

The Company also announced that it will hold an Extraordinary General Meeting of Shareholders (“Extraordinary General Meeting”) on December 19, 2022. The Company has set the record date for the Extraordinary General Meeting of Shareholders on November 18, 2022.

The purpose of the Extraordinary General Meeting is to seek approval from our stockholders to enable the Board of Directors (“Board”) to consider a reverse stock split of our outstanding common stock (“Common Stock”) in a ratio of up to 100 times. is to ask. 5 shares before the consolidation will be 1 share after the consolidation. The Corporation’s Board also proposes several periodic amendments to the Articles of Incorporation to align with recent changes to the Business Corporations Act (Alberta).

The board’s authority to combine shares is subject to the prior approval of our stockholders and the Toronto Stock Exchange (“TSX”). Additional information, including virtual access to the Special General Assembly and voting times and procedures, will be provided at a later date. In addition, the Management Information Circular for the next Extraordinary General Meeting will be made available to shareholders and will be filed by the company with SEDAR.

About Canacor

Canacol is a Colombian-based natural gas exploration and production company. The company’s common stock trades on the Toronto Stock Exchange, his OTCQX in the United States, and the Columbia Stock Exchange under the ticker symbols CNE, CNNEF, and CNEC, respectively.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of applicable securities laws. Forward-looking statements often use words such as “plans,” “expects,” “anticipates,” “intends,” “believes,” “forecasts,” “estimates,” Characterized by a description of an event or situation. This includes, but is not limited to, statements regarding estimated production rates from our assets, intended work programs and associated timelines. Forward-looking statements are based on management’s opinions and estimates at the time the statements were made and are subject to various risks and uncertainties that could cause actual events or results to differ materially from those projected in the future. subject to other factors that may The statement you are looking for. We cannot guarantee that our actual results will match those forward-looking statements. They are made as of the date hereof, are subject to change and, except as required by law, we undertake no obligation to revise or update them to reflect new circumstances. . Future investors should not place undue reliance on forward-looking statements. These factors include the inherent risks associated with exploration and development of crude oil and natural gas properties, the uncertainties associated with interpreting drilling results and other geological and geophysical data, energy price volatility, and costs. Includes potential for overages or unexpected costs or delays. Other uncertainties associated with the oil and gas industry. Other risk factors may include risks associated with dealing with foreign governments, country risks associated with conducting international activities and other factors, many of which are beyond our control. .

Realized contractual gas sales are defined as gas revenues received from gas production and sales and named take-or-pay contracts.

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