Canacol Energy announces revised 2024 Capital Program

Canacol Energy has revised its 2024 capital program, comments on 2024 guidance and provides drilling update. The Corporation has revised its capital program to now drill a total of 11 wells in 2024, with an estimated capital spend of $138 million. The 11-well program includes five exploration wells, and six development/appraisal wells. Canacol’s original 2024 capital budget, as announced on February 5, 2024, had included a range of $138 million to $151 million. Drilling program efficiency initiatives have contributed significantly to planning for increased drilling activity without increases in total capital program costs. The Corporation currently anticipates 2024 EBITDA to be in the mid to higher range of its previously announced guidance of $250 million to $290 million, with its natural gas and oil sales volumes anticipated to average approximately 167 million cubic feet equivalent per day. The revised 2024 capital program has been designed to achieve corporate production and reserve addition targets. To date the Corporation has drilled six wells, which include five successful wells that are currently on production and the unsuccessful Cardamomo-1 well. The Cardomomo 1 exploration well, located on the VIM5 Exploration and Production contract, was drilled to a total depth of 11,591 feet measured depth targeting the Cienaga de Oro Formation. The well encountered 203 feet true vertical depth of net porous sandstones within the CDO with non commercial amounts of natural gas. The Cardomomo 1 well has now been abandoned. For the remainder of 2024, the Corporation plans to drill 3 appraisal wells in producing gas fields and 2 exploration wells. The Nispero 2 appraisal well will target gas bearing sandstones of the CDO Formation within the Nispero gas field which the Corporation discovered in 2016. The Corporation anticipates spudding the well in early October 2024, with the well entering production in late October 2024. The Natilla 2 exploration well is targeting a large natural gas prospect within the SSJN7 E&P contract. The primary target of the Natilla 2 exploration well are sandstones of the CDO Formation, with secondary sandstone targets in the overlying Porquero Formation. The Corporation anticipates spudding Natilla 2 in early October 2024 and anticipates that the well will take approximately 2 months to drill. The Siku 2 appraisal well will target gas bearing sandstones within the CDO Formation in the Siku and Oboe gas fields, which the Corporation discovered in 2016. The Corporation anticipates spudding the well in early November 2024, with the well entering production in late November 2024. The Kite 1 exploration well is targeting sandstones of the CDO Formation in a prospect located between the Palmer gas field discovered in 2014 immediately to the south, and the Pomelo and Chontaduro gas fields discovered in early 2024 immediately to the north. The Corporation anticipates spudding the well in early October 2024, with results by late October 2024. If successful, the Kite 1 well will be immediately tied into production. The Lulo 3 appraisal well is targeting gas bearing sandstones of the CDO Formation within the Lulo gas field discovered in early 2023. The Corporation anticipates spudding the well in early December 2024, with the well entering production in late December 2024.