Canacol Energy Ltd. Announces New Gas Sale Contract, Lifts Forecast Gas Sales to 14,560 BOEPD in 2015 in Colombia - Seite 2

After the successful drilling and testing of the Palmer 1 exploration well, which is currently being tied into the operated Bretana substation, the Corporation is currently mobilizing the rig to commence the drilling of the Corozo 1 exploration well, the second gas exploration well in its planned three well exploration program on the Esperanza block. The Corozo 1 well is anticipated to spud the first week of October 2014, with results anticipated in early November 2014. The Corozo 1 well is targeting the same Cienaga de Oro sandstone reservoir encountered at the Palmer 1 discovery, which flowed 15.5 mmscfpd of dry gas on test, as announced in August 2014. Upon completion of the Corozo 1 exploration well the drilling rig will be mobilized to drill the Canandonga 1 exploration well, subject to the approval of the ANH, which is anticipated to spud in early December 2014 and is also targeting gas within the Cienaga de Oro sandstone reservoir. Any gas discovered at either the Corozo and/or the Canandonga prospects will be tied back into the Canacol operated Jobo gas processing facility.

Canacol is an exploration and production company with operations focused in Colombia and Ecuador. The Corporation's common stock trades on the Toronto Stock Exchange, the OTCQX in the United States of America, and the Colombia Stock Exchange under ticker symbol CNE, CNNEF, and CNEC, respectively.

This press release contains certain forward-looking statements within the meaning of applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur, including without limitation statements relating to estimated production rates from the Corporation's properties and intended work programs and associated timelines. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Corporation cannot assure that actual results will be consistent with these forward looking statements. They are made as of the date hereof and are subject to change and the Corporation assumes no obligation to revise or update them to reflect new circumstances, except as required by law. Prospective investors should not place undue reliance on forward looking statements. These factors include the inherent risks involved in the exploration for and development of crude oil and natural gas properties, the uncertainties involved in interpreting drilling results and other geological and geophysical data, fluctuating energy prices, the possibility of cost overruns or unanticipated costs or delays and other uncertainties associated with the oil and gas industry. Other risk factors could include risks associated with negotiating with foreign governments as well as country risk associated with conducting international activities, and other factors, many of which are beyond the control of the Corporation.