Canacol Energy Ltd. ("Canacol") (TSX: CNE; OTCQX: CNNEF; BVC: CNEC) is pleased to provide the following update regarding scheduled interest payment, termination of Fitch Ratings coverage, and exploration drilling program.
Interest Payment
On May 24, 2024, Canacol paid its scheduled semi-annual interest payment of US $14.375 million on its November 2028 Senior Notes.
Rating Agency Update
On Tuesday, May 21, 2024, the Corporation informed Fitch Ratings that it was terminating its contract for the provision of ratings coverage. The Corporation retains the services of both Moody’s and S&P Ratings.
Cardamomo-1 Exploration Well
The Corporation is preparing to drill the Cardamomo-1 exploration well located in the northern part of its 100% operated VIM-5 Exploration and Production (“E&P”) contract situated approximately 25 kilometers to the north of its Jobo gas processing facility. The Cardamomo-1 exploration well will target potential gas bearing sands within the Cienaga de Oro (“CDO”) reservoir, in a large well defined structural closure identified on the Redoblante 3D seismic survey acquired in 2023. Similar to all of the other large discoveries the Corporation has made in the past, including the Clarinete, Nelson, Aguas Vivas, and Pandereta gas fields, the Cardamomo prospect exhibits a well-defined AVO attribute, a seismic characteristic commonly associated with the presence of gas within the CDO reservoir. The Corporation plans to spud the well in late July 2024, and anticipates that it will take 3 to 4 weeks to drill and complete the well. Given success, the Cardamomo field will be tied into the Alboka flowline located approximately 12 kilometers to the south.
The Cardamomo prospect is one of 14 CDO exploration prospects identified on the newly acquired Redoblante 3D seismic survey, and should it prove successful will open up a new productive gas area for the Corporation within the northern part of the VIM-5 E&P contract.