Canacol Energy Ltd. Sets Strategic Financial and Operational Course for 2024

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Energy Sector excited Crew from Thunder Bay
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Capital Investment and Gas Sales Outlook Reflect Commitment to Growth and Market Adaptability

CALGARY, Alberta – Canacol Energy Ltd. (“Canacol” or the “Corporation”) (TSX:CNE; OTCQX:CNNEF; BVC:CNEC) is excited to outline its financial and operational roadmap for 2024, detailing a strategic vision aimed at expanding its footprint in the energy sector. All figures are presented in U.S. dollars unless stated otherwise, with Canadian dollar amounts denoted as “C$”.

The Corporation has earmarked a 2024 capital budget ranging from $138 million to $151 million. It expects its average realized contractual gas sales, accounting for downtime, to be between 160 and 177 million cubic feet per day (MMcfpd), with firm take-or-pay contracts contributing an average of 124 MMcfpd, net of contractual downtime. The wellhead sales price, after transportation deductions, is estimated at approximately $6.04/Mcf for firm contracts, with an overall average price of $6.59/Mcf when including interruptible volumes.

Key Highlights and Strategic Focus for 2024

Charle Gamba, President and CEO of Canacol, emphasized the Corporation’s commitment to enhancing its reserve base and production capabilities, particularly within the Lower Magdalena Valley Basin, alongside exploring new opportunities in the Middle Magdalena Valley and Bolivia. The focus also extends to improving Environmental, Social, and Governance (ESG) scores, reflecting a holistic approach to sustainable development.

For 2024, Canacol plans to:

  • Drive growth in reserves and production through a robust development and exploration program within its core gas assets.
  • Prioritize financial prudence, maintaining low capital costs and liquidity to support long-term investments.
  • Postpone certain explorations in the Middle Magdalena Valley Basin to 2025, aligning investment focus with market dynamics.
  • Seek approval for a new exploration and production contract in Bolivia, aiming to start development operations by 2025.

2024 Corporate Guidance and Capital Program Overview

Canacol anticipates strong EBITDA generation between $250 million and $290 million, supported by its strategic development and exploration initiatives. The capital program is designed to balance the development of existing reserves with new exploration efforts to optimize production and identify new prospects.

Financial Highlights for 2024

  • Natural gas sales volume is expected to range between 160 and 177 MMcfpd.
  • EBITDA projections range from $250 million to $290 million, with capital expenditures planned between $138 million and $151 million.
  • The Corporation aims to reduce debt while investing in key projects to leverage favorable gas market conditions.

About Canacol

Canacol Energy Ltd. is a leading natural gas exploration and production company with a strong presence in Colombia. Its shares are traded on the Toronto Stock Exchange, the OTCQX in the United States, and the Colombia Stock Exchange under the symbols CNE, CNNEF, and CNE.C, respectively.

Forward-Looking Statements Advisory

This release contains forward-looking statements regarding Canacol’s future operations, including but not limited to, gas sales, exploration results, and financial performance. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially. Canacol undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change, except as required by securities laws.

For more detailed information, please visit Canacol’s website or consult the full report at www.sedar.com.

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