Canacol Energy Ltd. reported on the conventional natural gas prospective resources for its Esperanza, VIM-21, VIM-5, VIM-19, VIM-33, VIM-44 and SSJN-7 exploration blocks located in the Lower Magdalena Valley basin, and VMM-45, VMM-47 and VMM-49 exploration blocks located in the Middle Magdalena Valley basin of Colombia. Prospective resources are based on a new independent resources audit prepared by Gaffney, Cline & Associates, effective December 31, 2020. Canacol is a natural gas focused exploration and production company, and the largest independent gas producer in Colombia. Using 3D seismic, the Corporation continues to achieve a high success rate with its gas exploration program. In the Lower Magdalena valley basin, the application of the Amplitude Versus Offset (AVO) methodology to investigate the presence of gas-charged reservoir sandstones has significantly reduced the risk on the outcome of gas exploration wells in both the Corporation’s key play types in the Cienaga de Oro Formation (“CDO”) and in the Porquero Formation. In the Middle Magdalena Valley basin, the Corporation continues to build out its gas exploration portfolio by means of the successful acquisition of an additional exploration block (VMM-47) at the 2020 bid round (Proceso Permanente de Asignación de Areas Ciclo 3) administered by Colombia’s hydrocarbon regulatory authority, the Agencia Nacional de Hidrocarburos. The Corporation also secured the VIM-44 block adjacent to its core operating area in the Lower Magdalena Valley basin. At present, the Corporation has embarked on an expansive exploratory program comprising the acquisition of 3D seismic and continued drilling activity to further assess the significant prospective resource for conventional natural gas across its large acreage position. GaffneyCline was commissioned to conduct an independent prospective resources audit of Canacol’s internal estimates of prospective resources for the Corporation’s 100% Working Interest position in exploration blocks Esperanza, VIM-21, VIM-5, VIM-19, VIM-33 and VIM-44 and its 50% Working Interest position in SSJN-7 in the Lower Magdalena Valley basin, and the Corporation’s 100% Working Interest position in exploration blocks VMM-45, VMM-47 and VMM-49 in the Middle Magdalena Valley basin (the “Audited Areas”) effective December 31, 2020. Of primary importance in the Lower Magdalena Valley basin is the resource potential of the CDO comprised of up to 5000 feet of deltaic and marginal marine sandstones and shales. The CDO play is characterized by structural features such as faulted horst blocks and faulted three-way dip anticlinal closures. Specific prospects are identified and mapped using 3D seismic, and technical risk is further mitigated by the application of seismic attribute analysis to investigate the presence of gas-charged sandstones. Since 2014, the Corporation has enjoyed significant success in both its exploration and development drilling program with the CDO play, with 23 out of 27 exploration and appraisal wells encountering gas (85% GCoS), and 10 out of 10 development wells encountering gas. In addition, the Corporation has further investigated the emerging play type in the turbiditic sandstone reservoirs of the shallow Porquero Formation. As for the CDO play, Porquero exploration prospects are identified and mapped using 3D seismic, and technical risk is further mitigated by the application of seismic attribute analysis to investigate the presence of gas-charged sandstones. Since 2016, the Corporation has achieved noted success in its exploration drilling program with the Porquero play, with 5 out of 5 exploration and appraisal wells encountering gas (100% GCoS). In addition, the Corporation has further investigated the emerging play type in the turbiditic sandstone reservoirs of the shallow Porquero Formation. As for the CDO play, Porquero exploration prospects are identified and mapped using 3D seismic, and technical risk is further mitigated by the application of seismic attribute analysis to investigate the presence of gas-charged sandstones. Since 2016, the Corporation has achieved noted success in its exploration drilling program with the Porquero play, with 5 out of 5 exploration and appraisal wells encountering gas (100% GCoS). For the exploratory opportunity on the recently acquired exploration blocks in the Middle Magdalena Valley basin, the Corporation has identified conventional natural gas plays it anticipates to mature by means of investigative geological studies, the reprocessing of existing 2D and 3D seismic, seismic acquisition and drilling over the next three years. Historically, the Corporation has successfully secured sales contracts for its existing production. It is confident of its ability to secure future contracts in an expanding market along the Caribbean coast and the Colombian interior. Since 2012, the Corporation has demonstrated its ability to manage other contingencies such as legal, regulatory, political, social license, internal and external approvals, and access to project finance to ensure the timely execution of its exploration and field development plans with respect to achieving existing production levels for natural gas in northern Colombia. Appropriate levels of capital investment are anticipated to ensure future full field development including drilling, tie-in, infrastructure buildout for facilities and flow-lines, and abandonment and reclamation. The Corporation has prepared a realistic time and capital schedule for the execution of its proposed exploration campaign over the next three years to ensure compliance with its contractual obligations during the exploratory phase of each block while accounting for additional time for follow- up appraisal and development drilling, installation of flow-lines, and plant expansion as required. Future field development will be for conventional natural gas. The Corporation does not expect undue challenges related to HPHT (High Pressure High Temperature) reservoirs in its go forward exploration and development programs. Any discovery will be developed using existing industry technology with standard gas completions in the well-bores, and standard surface treatment and compression facilities in the same manner as the seventeen operated fields presently tied-in and under production (Nelson, Palmer, Clarinete, Oboe, Chirimia, Acordeon, Ocarina, Pandereta, Nispero, Trombon, Toronja, Breva, Arandala, Canahuate, Ariana, Canaflecha, and Katana).