Canacol Energy Ltd. Reaffirms FY 2012 Production Guidance

Canacol Energy Ltd. announced for calendar year 2012, it expects to achieve strong base production and cash flow growth from drilling and re-completion programs at its Rancho Hermoso field; 2) to access potential near-term light oil production and cash flow from the LLA 23 contract, which is located immediately north of and on trend with the Rancho Hermoso field; and 3) to execute on a large exploration program which targets heavy oil in the Putumayo- Caguan basin and light oil in the Putumayo and Middle Magdalena basins. Of the Corporation's 2012 exploration budget of $88 million, approximately 60% is targeted for light oil exploration programs and approximately 40% is targeted for heavy oil programs. In December 2011, the Corporation set an overall $150 million capital program for calendar year 2012 and average production guidance of 14,000 to 16,000 bopd for the same period.