Canacol Energy Ltd. provide the following update concerning its Mono Arana 1 exploration well drilled on the VMM2 Exploration and Production (E&P) contract located in the Middle Magdalena Valley of Colombia. Subject to the completion of the formal assignment process with the ANH, Canacol holds a 20% non-operated working interest in the E&P contract, with ExxonMobil Exploration Colombia holding a 70.1% working interest and Vetra Exploracion y Produccion Colombia (Vetra) holding the remaining 9.9% operated working interest. The recognition of the aforementioned working interests has been submitted for the approval of the Agencia Nacional de Hidrocarburos (ANH).

The Mono Arana 1 well was spud on September 23, 2012, and was designed to test the oil potential of both the shallow conventional Tertiary Lisama sandstone reservoir and deeper shale and carbonate reservoirs within the La Luna and Tablazo oil source rocks. The well has been drilled and cased to a depth of 9,942 feet measured depth ("ft md") within the Cretaceous La Luna Formation. Approximately 760 feet of La Luna were encountered, with good oil and gas shows noted throughout the entire interval while drilling.

Tags: Canacol Energy Inc.