Canacol Energy Ltd. Announces Closing of $75 Million Senior Secured Term Loan – Canacol Energy (OTC:CNNEF)

CALGARY, Alberta, Sept. 3, 2024 (GLOBE NEWSWIRE) — Canacol Energy Ltd. (“Canacol” or the “Corporation”) CNECNNEFCNEC)) is pleased to announce that on September 3, 2024, it entered into a US$75 million, 24-month senior secured term loan agreement (the “Agreement”) with Macquarie Group (“Macquarie”).

The initial amount of the financing is expected to be US$50 million, with an additional commitment of US$25 million available over a twelve-month period if certain production metrics are met. The facility bears interest at an annual rate of SOFR + 8.0% on amounts drawn and 2.4% on undrawn amounts during the commitment period. The Corporation expects to enter into a SOFR hedge agreement with Macquarie fixing the interest rate. The facility matures on September 3, 2026 and has a twelve-month principal payment grace period. No prepayments may be made during the first twelve months. The facility is secured by all of the Corporation's material assets.

The covenants under the facility have been largely harmonized with the Corporation's existing covenants under its 2028 senior unsecured notes and its senior unsecured revolving credit facility due February 2027.

As of June 30, 2024, the Corporation had $43 million in cash and a leverage ratio of 2.69x, well below its existing leverage ratio commitments of 3.25x (incurrence) and 3.5x (maintenance).

Canacol intends to use the proceeds from the Facility for general corporate purposes.

In connection with the Facility, 1,888,448 common share purchase warrants (the “Warrants”) will be issued to Macquarie, each of which will entitle Macquarie to purchase one common share of the Corporation at an exercise price equal to the five (5) day volume weighted average trading price of the common shares ending on the date hereof. The Warrants will expire three (3) years from the date of issuance. The Warrants remain subject to final approval by the Toronto Stock Exchange.

The complete Credit and Guarantee Agreement will be published in www.sedarplus.ca

Gas sales update

Realized natural gas contractual sales (which are gas produced, delivered and paid for) averaged approximately 161 million standard cubic feet per day (“MMscfpd”) during July 2024, and approximately 167 MMscfpd during August 2024.

About Canacol

Canacol is a natural gas exploration and production company with operations focused in Colombia. The Corporation's common shares are listed on the Toronto Stock Exchange, the OTCQX in the United States of America and the Colombian Stock Exchange under the symbols CNE, CNNEF and CNE.C, respectively.

Forward-looking information and 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,” “target,” “intend,” “believe,” “anticipate,” “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur, including, but not limited to, statements relating to estimated production rates from the Corporation's properties and anticipated work programs and associated schedules. 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 can give no assurance 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 undertakes no obligation to revise or update them to reflect new circumstances, except as required by law. The information and guidance provided herein supersede and replace any forward-looking information provided in previous disclosures. Prospective investors should not place undue reliance on forward-looking statements. These factors include the risks inherent in the exploration 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 the risks associated with dealing with foreign governments, as well as the country risk associated with conducting international activities, and other factors, many of which are beyond the Corporation's control. Other risks are described in more detail in the Corporation's most recent Management Discussion and Analysis (“MD&A”) and Annual Information Form, which are incorporated herein by reference and are filed on SEDAR at www.sedar.comAverage production figures for a given period are obtained by arithmetic averaging fluctuating historical production data for the entire period indicated and, accordingly, do not represent a constant rate of production for such period nor are they an indicator of future production performance. The Corporation provides detailed information regarding monthly production at the fields operated by the Corporation in Colombia to the Colombian Ministry of Mines and Energy and the Ministry publishes it on its website; a direct link to this information is provided on the Corporation's website.

For more information, please contact:
Investor Relations
South America: +571.621.1747 IR-SA@canacolenergy.com
Global: +1.403.561.1648 IR-GLOBAL@canacolenergy.com