Canacol Energy Ltd. Tests 46.3 MMSCFPD (8,123 BOEPD) from 8th Consecutive Colombian Gas Discovery at Toronja 1 Validating New Commercial Shallow Gas Play - Seite 2

Toronja 1 Gas Discovery

VIM 21 Exploration and Production ("E&P") Contract

CNE Oil and Gas S.A.S., 100% Operated Working Interest

The Toronja 1 exploration well was spud on May 28, 2017 and reached a total depth of 7,200 feet measured depth ("ft md") in six days. The well encountered gas between 4,875 to 6,256 ft md (4,775 to 5,956 feet true vertical depth) with average porosity of 20% within the primary Porquero sandstone reservoir target.

Two different zones were completed and flow tested within the Porquero. The first zone tested was perforated between 4,865 to 4,884 ft md and flowed at a final stabilized rate of 24.4 million standard cubic feet per day ("MMscfpd") of dry gas at a flowing tubing head pressure of 813 pounds per square inch ("psi") and 70/64-inch choke with no water over a 44 hour test period. The second zone tested was perforated between 6,249 to 6,257 ft md and flowed at a final stabilized rate of 21.9 MMscfpd of dry gas at a flowing tubing head pressure of 818 psi and 70/64-inch choke with no water over a 37 hour test period. Work is underway to tie the Toronja 1 well into the Corporation's gas processing facility at Jobo approximately 3 kilometers ("kms") to the south.

Pandereta 1 Gas Exploration Well

VIM 5 Exploration and Production Contract

CNE Oil and Gas S.A.S., 100 % Operated Working Interest

The Pandereta 1 exploration well is located approximately 10 kms to the east of the Clarinete and Oboe fields on the VIM 5 contract. The Pandereta prospect is a normal faulted three-way anticline imaged on 3D seismic data. The objective of the well are proven sandstones of the Cienaga de Oro ("CDO") reservoir, productive in the Clarinete and Oboe gas discoveries. The well will be spud in early October 2017 and is expected to be drilled and tested five weeks after spud.

Gaitero 1 Gas Exploration Well

VIM 5 Exploration and Production Contract

CNE Oil and Gas S.A.S., 100% Operated Working Interest

Upon completion of the testing of the Pandereta 1 well, the rig will be mobilized approximately 6 kms to the north to drill the Gaitero 1 exploration well. The Gaitero prospect is a normal faulted three-way anticline imaged on 3D seismic data. The objective of the well are proven sandstones of the CDO reservoir. The well will spud in mid November 2017 and is expected to be drilled and tested five weeks after spud.