Canacol Energy Ltd. provides Colombian exploration update

Friday, Nov 02, 2012

Canacol Energy Ltd. ("Canacol" or the "Corporation") (TSX:CNE) (BVC:CNEC) is pleased to provide the following update concerning its non-operated Mono Arana 1 exploration well currently drilling on the VMM2 Exploration and Production ("E&P") Contract located in the Middle Magdalena Valley of Colombia, as well as the status of its exploration drilling programs on the Cedrela and LLA23 E&P contracts located in the Caguan - Putumayo and Llanos Basins respectively.

Charle Gamba, President and CEO of the Corporation, stated "We are very pleased with the initial results of the Mono Arana exploration well, which has confirmed oil within the shallow conventional Lisama sandstone reservoir. This has a very positive implication for our adjacent Santa Isabel contract, which we operate with 100% working interest, where we have mapped 4 similar Lisama prospects on the basis of recently acquired 3D seismic. We plan to drill the largest prospect, Oso Pardo, in the first quarter of 2013 at Santa Isabel. We are looking forward to the results from the deeper part of the Mono Arana well, where we are testing the oil potential of the shales and carbonates of the La Luna and Tablazo formations. Meanwhile, our exploration drilling programs continue elsewhere in Colombia, targeting sizeable conventional heavy oil resources in the Caguan - Putumayo Basin, and smaller light oil conventional resources in the Llanos Basin located adjacent to our Rancho Hermoso field, with results anticipated in November 2012."

Source: Marketwire

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