Canacol Energy Commences Drilling for Oso Pardo 1 Shale Oil Exploration Well in Colombia

Canacol Energy Ltd. ("Canacol" or the "Corporation") CNECNEC is pleased to announce the commencement of drilling operations for the Oso Pardo 1 exploration well being drilled on the Santa Isabel Exploration and Production ("E&P") contract located in the Middle Magdalena Valley of Colombia. Pursuant to the terms of the agreements between Canacol and ConocoPhillips Colombia Ventures Ltd., a wholly-owned subsidiary of ConocoPhillips Company ("ConocoPhillips") COP, Canacol will hold a 30% operated working interest in the deep Cretaceous section of the contract, with ConocoPhillips holding 70% working interest. Canacol retains a 100% contractual interest in the shallow Tertiary section of the Concession Contract. The formalization of the aforementioned working interest remains subject to the official approval of the Agencia Nacional de Hidrocarburos.The well is situated approximately 12 kilometers west of the recently drilled Mono Arana 1 discovery located on the adjacent VMM2 E&P contract, in which Canacol has a 20% non-operated working interest. As previously disclosed, the Mono Arana 1 well encountered oil in both the Tertiary Lisama sandstone and naturally fractured shales of the Cretaceous La Luna Formation. Canacol holds approximately 253,000 net acres of the prospective shale oil trend across five See full press release