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Canacol Energy Ltd. Provides Operations Update

T.CNE

Marketwire

CALGARY, ALBERTA--(Marketwired - Nov. 5, 2013) - Canacol Energy Ltd. ("Canacol" or the "Corporation") (TSX:CNE)(BVC:CNEC) is pleased to provide the following update on Corporate production and its drilling plans for the Leono 1 exploration well located on the LLA23 Exploration and Production ("E&P") contract which the Corporation plans to spud next week.

Average net Corporate production before royalties for the month of October 2013 was approximately 9,642 barrels of oil equivalent per day ("boepd") which consisted of approximately 6,612 barrels of oil per day ("bopd") and approximately 17.3 mmscfd (3,030 boepd) of gas.

The Corporation plans to spud the Leono 1 exploration well located on the LLA23 E&P contract in the second week of November 2013. Leono 1 will be the second exploration well drilled on the LLA23 E&P contract following the Corporations Labrador oil discovery late in 2012. The Leono prospect is located approximately 12 kilometers to the north of the Labrador oil field, and is situated on the same fault trend that forms both the Rancho Hermoso and Labrador oil fields. The Leono 1 well is anticipated to be drilled to a depth of approximately 11,900 feet measured depth and will take approximately 45 days to drill and production test. Leono 1 is targeting all of the producing reservoirs the Corporation is familiar with at the Rancho Hermoso and Labrador fields located along trend to the south.

Canacol is an exploration and production company with operations focused in Colombia and Ecuador. The Corporation's common stock trades on the Toronto Stock Exchange and the Colombia Stock Exchange under ticker symbol CNE and CNE.C, respectively.

This press release contains certain forward-looking statements within the meaning of applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur, including without limitation statements relating to estimated production rates from the Corporation's properties and intended work programs and associated timelines. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Corporation cannot assure that actual results will be consistent with these forward looking statements. They are made as of the date hereof and are subject to change and the Corporation assumes no obligation to revise or update them to reflect new circumstances, except as required by law. Prospective investors should not place undue reliance on forward looking statements. These factors include the inherent risks involved in the exploration for and development of crude oil and natural gas properties, the uncertainties involved in interpreting drilling results and other geological and geophysical data, fluctuating energy prices, the possibility of cost overruns or unanticipated costs or delays and other uncertainties associated with the oil and gas industry. Other risk factors could include risks associated with negotiating with foreign governments as well as country risk associated with conducting international activities, and other factors, many of which are beyond the control of the Corporation. Data obtained from the initial testing results at the well identified in this press release, including barrels of oil produced and levels of water-cut, should be considered to be preliminary until a further and detailed analysis or interpretation has been done on such data.

Canacol Energy Ltd.
Investor Relations
888-352-0555
IR@canacolenergy.com
www.canacolenergy.com



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