/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN
THE U.S./
CALGARY, May 27, 2014 /CNW/ - Canacol Energy Ltd. ("Canacol" or the
"Corporation" - TSX:CNE; OTCQX:CNNEF; BVC:CNEC) is pleased to announce
that it has closed a bought deal equity financing announced on May 6,
2014. The Corporation issued 15,823,000 common shares of Canacol (the
"Common Shares") at a price of $7.90 per Common Share for gross
proceeds of $125,001,700 (the "Offering"). The Offering was
underwritten by a syndicate of underwriters led by Canaccord Genuity
Corp. and including TD Securities Inc., CIBC, Cormark Securities Inc.,
Desjardins Securities Inc., GMP Securities L.P. and Mackie Research
Capital Corporation (collectively, the Underwriters").
The Corporation granted the Underwriters an option to purchase up to 15%
additional Common Shares (the "Over-Allotment Option"), exercisable for
a period of 30 days following the date of closing to cover
over-allotments, if any.
Canacol plans to use approximately $62.9 million of the net proceeds
from the Offering to expand its calendar 2014 capital program,
including two additional exploration wells and seven additional
development wells on the Corporation's LLA-23 and Santa Isabel E&P
contracts, while the remainder is expected to be used for future
capital expenditure activities, working capital and general corporate
expenses.
The securities offered have not been and will not be registered under
the U.S. Securities Act of 1933, as amended, and may not be offered or
sold in the United States absent registration or an available exemption
from the registration requirements thereof. This press release shall
not constitute an offer to sell or the solicitation of an offer to buy
nor shall there be any sale of the securities in any jurisdiction in
which such offer, solicitation or sale would be unlawful.
About Canacol Energy Ltd.
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, the OTCQX in the United States of America, and
the Colombia Stock Exchange under ticker symbol CNE, CNNEF, and CNE.C,
respectively.
Forward-Looking Statements
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.
SOURCE Canacol Energy Ltd.
