OREANDA-NEWS. Canacol Energy Ltd. ("Canacol" or the "Corporation") (TSX:CNE; OTCQX:CNNEF; BVC:CNEC) is pleased to announce that Clarinete 2ST , the first appraisal well drilled in its recently discovered Clarinet e gas field on the VIM 5 Exploration and Production ;͞E&P͟Ϳ Contract, has tested at a final gross rate of 25.6 million standard cubic feet per day ( mmscfpd ) (4,491 baƌƌels of oil eƋuivaleŶt ͞ boepd ͟Ϳ of dry gas with no water from the Cienaga de Oro ;͞CDO͟Ϳ ƌeseƌvoiƌ , and at a final gross rate of 4.7 mmscfpd (825 boepd) of dry gas with 1 barrel of water from the overlying Tubara sandstone reservoir. Canacol, through its wholly owned subsidiary CNE Oil & Gas S.A.S., hol ds a 100% operated interest in the VIM 5 E&P contract.

The Clarinete-2 well was spud on August 2, 2015, and had to be si detracked on August 31, 2015 after becoming mechanically stuck in the shallow Porquero shales at a depth of approxim ately 4,300 feet, not having reached the primary Cienaga de Oro reservoir target at 5,967 feet. The Clarinete-2 ST reached tota l depth of 7,842 feet on September 16, 2015. The well encountered 127 feet of total net gas pay with an average po rosity of 23% within the same two main reservoir intervals of the Cienaga de Oro sandstone that tested a combin ed rate of approximately 44 mmscfpd in the Clarinete-1 discovery well.

The CDO sandstone reservoir was perforated in various intervals between 6,3 07 and 6,657 feet measured depth ;͞ft ŵd͟Ϳ . Flow testing of this interval achieved a final rate of 25.6 mmscfpd (4,491 boepd) using a 44 / 64 inch choke with a tubing head pressure of 2,107 pounds per square inch ;͞psi͟Ϳ with no water at the end of a 4 day test period. The final fl ow rate was registered at, and constrained by, the absolute measurement limit o f the testing equipment.

Clarinete 2ST also encountered dry gas within shallower sandstones of the overl yi ng Tubara Formation, with four separate sandstone intervals exhibiting strong gas shows while drilling. Cased hole logs identified 135 feet of gas pay with average porosity of 17 % and neutron density cross over, which is an in dication of the presence of potential gas. The Tubara was perforate d over 37 feet between 4,828 and 5,555 ft md. Flow testing of this interval ach ieved a final rate of 4.7 mmscfpd (825 boepd) of dry gas on a 26 / 64 inch choke with a tubing head pressure of 1,326 psi with 1 barrel of water at the end of a 24 hour test period. No reserves or resources are currently booked in the Tubara, and the Corporation plans to continue the flow testing in order to establish the magnitude of reserves as sociated with this shallower reservoir.

Up on completion of production testing at Clarinete 2 ST the drilling rig wil l be mobilized to the Oboe 1 site, located approximately 3 kilometers north of the Clarinete 1 discovery well. Obo e-1 is anticipated to spud in early November 2015 and will take approximately five to six weeks to drill and test.

The Corporation also reports that the expansion of its production facil ity located at Jobo is on schedule, as is construction of the Promigas pipeline expansion, allowing the Corporation to increase gas production by 65 mmscfpd (11,400 boped) in December 2015.

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 o f America, and the Colombia Stock Exchange under ticker symbol CNE, CNNEF, and CNE.C, respectively.