Breva 1 Gas Exploration Well

VIM 21 Exploration and Production Contract

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

The Breva 1 exploration well is located approximately 1.5 kilometers north of the Toronja 1 Porquero gas discovery announced by the Corporation in June 27, 2017.

Toronja 1 encountered approximately 14 feet true vertical depth (“ft TVD”) of net gas pay within the Middle Porquero sandstone reservoir, and tested at a rate of 24.4 million standard cubic feet per day (“MMscfpd”) of dry gas with no water.

Nelson 6, the Corporation’s first discovery in the shallow Porquero sandstone play, encountered 39 ft TVD of net gas pay and tested 23 MMscfpd of gas.

Using the Pioneer 302 drilling rig, Breva 1 was spud on April 29, 2018, and reached a total depth of 7,560 feet measured depth in 13 days.

The well encountered 29 feet true vertical depth of net gas pay with average porosity of 27% within the primary Porquero sandstone reservoir target.

The well has been completed and cased, and the Corporation is currently mobilizing a work over rig to perforate and production test the well.

The work over rig is anticipated to arrive in 2 weeks, and the testing program is anticipated to take approximately 1 week to complete.

After Nelson 6 and Toronja 1, Breva 1 represents the third consecutive discovery in the emerging and important new Porquero play type in the Corporation’s exploration portfolio.

By means of the application of the AVO methodology proven to be so successful locating gas-charged reservoir sandstones in the Cienaga de Oro play type, the Corporation has demonstrated the same relationship between gas and reservoir sandstones in the Porquero Formation.

Going forward, the successful outcome of the three exploration wells in the Porquero sets up at least five exploration and appraisal locations on the VIM 21 concession. It also provides critical technical information regarding the AVO methodology enabling Canacol’s exploration team to investigate the potential for the Porquero play type across the Corporation’s expansive acreage position (1.1 mm net acres) in the Lower Magdalena Valley Basin.

2018 Drilling Program Update

The drilling rig meanwhile has been mobilized to drill the Borojo 1 exploration well, located on the 100% operated Esperanza E&E contract.  Borojo 1 is targeting gas bearing reservoirs of the Cienaga de Oro sandstones, and is anticipated to spud the first week of June 2018.

The well will take approximately 4 weeks to drill and complete, and like Breva 1, will be perforated and tested with a workover rig approximately 1 week after the drilling rig moves off to drill the Canahuate Este exploration well.

The Corporation will provide regular updates on drilling results as they become available.

Source: Company Press Release.