Canacol Energy (CNE): Shift towards high-impact...

Edison Investment Research Limited Canacol Energy (CNE): Shift towards high-impact drilling 25-May-2022 / 12:38 GMT/BST London, UK, 25 May 2022 Canacol Energy (CNE): Shift towards high-impact drilling Canacol’s recent independent prospective resources audit has assigned 7.6tcf to the company’s Lower and Middle Magdalena Valley (LMV and MMV) assets, up from 1.7tcf in 2021 and with 6.6tcf sitting in the untapped MMV. This will be key to the company’s success as it looks beyond its core LMV producing area to secure its targeted reserves replacement ratio of 200% per year (on average). The company’s first test of the MMV will be the Pola-1 well spudding in Q322, targeting 470bcf of mean gross risked prospective resources. Success here would be transformational given that Canacol currently holds 607bcf of 2P reserves. We believe the share price does not reflect the exploration upside and value the company at C$6.29/share, more than double the current share price. Our total net asset value (NAV) is based on a combination of 2P reserves and additional ‘to be developed’ risked reserves that we expect to be added over the next five years. We calculate the core NAV at C$2.24/share, to which we add C$4.05/share for additional risked reserves to arrive at our valuation of C$6.29/share, more than double the current share price. We believe the share price does not fully reflect the potential upside from exploration. Click here to view the full report or here to sign up to receive research as it is published. All reports published by Edison are available to download free of charge from its website www.edisongroup.com About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached – across institutions, family offices, wealth managers and retail investors – Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings. Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison’s reports are not solicitations to buy or sell any securities. For more information, please contact Edison: James Magness [phone] [e-mail] Elaine Reynolds [phone] [e-mail] Learn more at www.edisongroup.com and connect with Edison on:  LinkedIn  www.linkedin.com/company/edison-group-/ Twitter   www.twitter.com/Edison_Inv_Res YouTube  www.youtube.com/edisonitv Dissemination of a CORPORATE NEWS, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.

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1361385 25-May-2022