OREANDA-NEWS. Canacol Energy Ltd. ("Canacol" or the "Corporation") (TSX:CNE; OTCQX:CNNEF; BVC:CNEC) is pleased to report its reserves for the fiscal year ended December 31, 2015 for it assets located in Colombia and Ecuador. Highlights include:

- Proven developed producing (DzPDPdz) reserves increased by 110% since June 30, 2015, to total 28.4 million barrels of oil equivalent (DzMMboedz) at December 31, 2015
- Proved plus probable (Dz2Pdz) reserves totaled 79.2 MMboe at December 31, 2015, with a before tax value discounted at 10% of US$ 1.3 billion, being CAN$ $9.44 per share
- Achieved a 2P reserve replacement of 1,013%, based on calendar 2015 gross reserve additions of 30.3 MMboe, being more than 10 times of those produced in the same period
- Achieved a 1P reserve replacement of 656% based on calendar 2015 gross proven reserve additions of 19.7 MMboe
- Achieved 2P finding and development costs (DzF&Ddz) of US$ 1.81/boe for its gas assets and US$ 2.85/boe as a corporate total for calendar 2015
- Achieved 2P F&D of US$ 3.78/boe for its gas assets and US$ 7.18/boe as a corporate total for the 2.5 year period ending December 31, 2015
- Recorded 2P finding, development and acquisition costs (DzFD&Adz) of US$ 2.44/boe for its gas assets and US$ 3.38/boe as a corporate total for calendar 2015
- Recorded a 2P reserves life index (DzRLIdz) of 24 years based on 2015 production, and a 10 year RLI based on expected future gas production of 90 MMscfpd upon the completion of the Promigas pipeline expansion (1P RLI being 16 years and 7 years, respectively)
- The December 31, 2015 reserve reports do not include the results of the successful Oboe 1 well which completed drilling in February, 2016 and recently tested cumulative production of 66 MMscfpd

Charle Gamba, President and CEO of Canacol, commented DzDuring a period marked by significant declines in global commodity prices, we have focused exclusively on increasing the value of our reserves base for our shareholders. Towards this end, I am pleased to report an increase in both the amount and value of our proven reserves base, largely due to the continued growth of our Colombian gas platform during the past 6 months. Since the last reserves report issued in June ͖͔͕5, Canacol’s proven developed producing reserves, the most valuable and important category of reserve, increased by 110% and total proven reserves by 3% to 28.4 million barrels of oil equivalent and 53 million barrels of oil equivalent respectively. More importantly, the before tax value discounted at 10% of Canacol’s proven reserves increased 16% to US$ 937 million, corresponding to CAN $6.32 per share. Total 2P reserves remained relatively flat over the 6 month reporting period at 79 million barrels of oil equivalent, with a before tax value discounted at 10% of US$ 1.3 billion, or CAN$ 9.44 per share.

Canacol’s management team continues to successfully execute its growth strategy with respect to high value Colombian gas, marked both by the recent success at the Oboe 1 well, and the ramp up of gas production to 90 MMscfpd by the end of March 2016. The reserves associated with the Oboe 1 well, which tested at a combined rate of 66 MMscfpd from three separate zones, are not included in this current reserves report, and will be the subject of a separate reserves report to be issued for June 2016 which will increase Canacol’s proven reserves base. Canacol estimates that gas sales will average approximately 80 MMscfpd (14,035 boepd) for calendar 2016 (including approximately 90 MMscfpd for the last three quarters of calendar 2016) at an anticipated average realized price of US$ 5.60 / thousand standard cubic feet (Dzmscfdz) (US$ 31.92/ boe), with an average netback of approximately US$ 4.56/mcf (US$ 26.00/boe), generating approximately US$ 163 million of gross revenues.

From a reserves perspective, the remainder of 2016 shall see the management team focused on growing Canacol’s Colombian gas reserves and production base through the execution of our large gas rich exploration portfolio. The management team is also negotiating the construction of a new gas pipeline which will send 100 MMscpf of new gas production to the Caribbean coast of Colombia in 2018. Meanwhile, Canacol maintains a large inventory of light oil drilling opportunities which could be rapidly executed should global oil prices recover to a reasonable level and justify capital investment.

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.