Exploration & Production | Finance & Investing | Capital Markets

Canacol Expands 2014 Capital Program

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Canacol Energy Ltd. has announced that it has entered into an agreement with a syndicate of underwriters led by Canaccord Genuity Corp. on behalf of a syndicate of underwriters, which have agreed to purchase, on a bought deal basis, 15,823,000 common shares of Canacol at a price of $7.90 per Common Share for gross proceeds of $125,001,700.

The Corporation will grant the Underwriters an option to purchase up to 15% additional Common Shares, exercisable for a period of 30 days following the date of closing to cover over-allotments, if any.

Canacol Energy will use the net proceeds from the Offering to expand the Corporation's capital program and for general corporate purposes.

The Common Shares will be offered by way of a short form prospectus to be filed in of British Columbia, Alberta and Ontario and such other Canadian provinces and territories (excluding Quebec) as the Underwriters and the Corporation may agree, acting reasonably. The Offering will also be sold in the United States on a private placement basis to Qualified Institutional Buyers pursuant to Rule 144A and in Europe and other eligible foreign jurisdictions in accordance with applicable regulations such that no prospectus, registration statement or similar document is required to be filed in any jurisdiction outside of Canada.

Closing of the Offering is expected to occur on or about May 27, 2014 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Exchange.