Benzinga | Sep 2, 2021 08:10AM EDT

Canacol Energy Reports Gas Sales, Aguas Vivas 3 Appraisal Results

Canacol Energy Ltd. ("Canacol" or the "Corporation") (TSX:CNE, OTCQX:CNNEF, BVC:CNEC))) is pleased to provide the following information concerning its August 2021 natural gas sales, drilling program, and share buy back.

Gas sales averaged 186 MMscfpd for August 2021

Realized contractual natural gas sales (which are gas produced, delivered, and paid for) were 186 million standard cubic feet per day for August 2021.

Aguas Vivas 3 appraisal well encountered 378 feet true vertical depth of net gas pay

The Aguas Vivas 3 appraisal well was spud on August 11, 2021 and reached a total depth of 8,000 feet measured depth on August 17, 2021. The well encountered 378 feet true vertical depth ("ft TVD) of net gas pay with an average porosity of 22% within the Cienega de Oro ("CDO") sandstone reservoir, the primary target. The Aguas Vivas 2 and 3 appraisal results confirm a significant gas accumulation at Aguas Vivas. The Corporation will now integrate these drilling results with the existing 3D seismic to better define the extent of the accumulation at Aguas Vivas and define additional development locations for future drilling.

Upon the completion and tie in to production of the Aguas Vivas 3 well, the Corporation will mobilize the rig to drill the San Marcos exploration well, which will target gas within the CDO sandstone reservoir. The Corporation anticipates that the well will take approximately 4 weeks to drill and complete.

Normal course issuer bid

On May 25, 2021, the Corporation began actively buying its shares back for cancellation under the terms of its Toronto Stock Exchange-approved normal course issuer bid and automatic share purchase program, which limits the maximum daily share purchases to 60,132 shares per day as outlined in a Dec. 21, 2020, press release. During the period August 1 to August 31, 2021, the Corporation repurchased 713,700 shares at an average price of $3.10 per share. Since May 25 2021 the Corporation has repurchased a total of 2,773,700 shares at an average price of $3.26 per share.