Canacol Energy says gas sales averaged 178 MMscfpd in August

Canacol Energy provides the following gas sales and drilling operations update. Realized contractual natural gas sales (which are gas produced, delivered, and paid for) were 178 million standard cubic feet per day for August 2023. Commencing the second week of August 2023 the Corporation experienced unusual and unexpected production capacity restrictions at some of its gas fields as a result of issues at the Jobo gas treatment facility as well as certain of its producing wells. As a result of the foregoing the Corporation has had to restrict gas deliveries under certain supply contracts dedicated to supplying non-essential gas demand, all in accordance with applicable Colombian regulations and in consultation with the relevant authorities. The Corporation is presently working on remediating this short-term disruption and expects to have production back to normal levels shortly. The Corporation spud the Cereza 1 exploration well on August 9, 2023 and reached a TD of 7,650 feet measured depth on August 20, 2023. The well encountered noncommercial quantities of gas within the Cienaga de Oro sandstone reservoir and was plugged and abandoned. The Corporation is currently drilling the Fresa 2 appraisal well targeting sandstones of the CDO reservoir that are productive in the offsetting Fresa 1 exploration well drilled in 2021. The Corporation anticipates completing the drilling of the well within the next two weeks. Two drilling rigs are currently being mobilized to drill the Agua Vivas 4 and Pandereta 9 development wells, with expected spud dates of the second week of September 2023 and the first week of October 2023 respectively. Both are infill development wells, and each will take approximately 4 weeks to drill and complete. The Corporation is focusing on infill development drilling and workover opportunities to meet anticipated high gas demand during the El Nino season which is anticipated to start in fourth quarter 2023. The company will return to exploration drilling prior to year end.