CNE Canacol Energy Ltd

Canacol Energy Ltd. ("Canacol" or the "Corporation") (TSX:CNE) (OTCQX:CNNEF)
(BVC:CNEC) is pleased to announce the successful appraisal of the Oso Pardo
light oil discovery made by Canacol in 2013 with the Morsa 1 well located on its
operated Santa Isabel Exploration and Production ("E&P") Contract in the Middle
Magdalena Basin of Colombia, which production tested 832 barrels of oil per day
gross ("bopd") (832 bopd net) of light oil. 


Charle Gamba, President and CEO of the Corporation, commented "Our drilling
program continues to deliver in 2014, with Morsa 1 marking the successful
appraisal of the Oso Pardo light oil discovery that we made within Tertiary aged
sandstones on the Canacol operated Santa Isabel contract in 2013. The
Corporation also made an important Tertiary sandstone oil discovery at Mono
Arana on the VMM2 contract located next door in 2013, and these consecutive oil
discoveries prove up a very promising shallow light oil play within the Tertiary
sandstones on these blocks that we are aggressively appraising and bringing onto
production throughout the remainder of calendar 2014 and 2015. Our assets in the
Middle Magdalena Basin are contributing meaningful low decline light oil
production and reserves growth to the Corporations diverse portfolio in
Colombia. Canacol currently has 6 rigs under contract and is drilling the
Pointer 1 oil exploration well on the LLA23 contract in the Llanos Basin, the
Palmer 1 gas exploration well on the Esperanza contract in the Lower Magdalena
Basin, and development and appraisal wells in the producing Pantro, Capella, and
Libertador oil fields located in the Llanos, Caguan - Putumayo, and Oriente
Basins respectively."


Morsa 1 Well and Test Results

The Morsa 1 well was spud on May 27, 2014 and reached a total depth of 5,944
feet measured depth ("ft md") on June 19, 2014 with good oil and gas shows
encountered while drilling through the primary Umir sandstone reservoir target.
The well encountered a total of 66 feet ("ft") of net oil pay in 2 separate
sandstone reservoirs within the Tertiary Umir Formation with an average porosity
of 17%.


The Umir reservoir was perforated from 3,504 to 3,725 ft md and is currently
flowing at a gross rate of 832 bopd (832 bopd net) of 25 degrees API oil with
0.1% water cut and 160 thousand standard cubic feet of gas per day ("mscfpd")
using a progressive cavity pump ("PCP") over the course of a 9 day flow period.


Forward Plans on Santa Isabel

Upon completion of the production test at Morsa 1 the Corporation plans to leave
the well on long term production test from the Umir sandstone, subject to the
approval of the Agencia Nacional de Hidrocarburos. The rig will spud the Oso
Pardo 2 well, designed to test the southwestern extent of the Umir discovery, in
the last week of July 2014. Upon the completion of the drilling and testing of
the Oso Pardo 2 well, which will take approximately 3 weeks, the Corporation
plans to use the drilling rig to do a remediation and install a PCP into the Oso
Pardo 1 discovery well which was damaged while drilling in order to increase its
production rate to levels similar to the Morsa 1 well. The Oso Pardo 1 discovery
well has been on long term production test since September 2013, and in its
damaged state is currently producing 120 bopd and 27 mscfpd using a jet pump.


The Corporation will provide updates when relevant information becomes available.

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.


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. The well test results obtained and
disclosed in this press release are not necessarily indicative of long-term
performance or of ultimate recovery. The reader is cautioned not to unduly rely
on such results as such results may not be indicative of future performance of
the well or of expected production results for the Corporation in the future. 


FOR FURTHER INFORMATION PLEASE CONTACT: 
Canacol Energy Ltd.
Investor Relations
800-352-0555
IR@canacolenergy.com
www.canacolenergy.com

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