CALGARY, Alberta, May 09, 2024 (GLOBE NEWSWIRE) -- Canacol Energy Ltd. ("Canacol" or the "Corporation") (TSX:CNE, OTCQX:CNNEF, BVC:CNEC)) is pleased to report its financial and operating results for the three months ended March 31, 2024. Dollar amounts are expressed in United States dollars, with the exception of Canadian dollar unit prices ("C$") where indicated and otherwise noted. Highlights for the three months ended March 31, 2024 Adjusted funds from operations increased 29% to $42.2 million for the three months ended March 31, 2024, compared to $32.7 million for the same period in 2023, mainly due to an increase in EBITDAX combined with a decrease in current income tax expense. Adjusted EBITDAX increased slightly to $61.0 million for the three months ended March 31, 2024, compared to $60.9 million for the same period in 2023. The increase is mainly due to an increase of natural gas operating netback, offset by a decrease in realized contractual natural gas and LNG sales volume. The Corporation's natural gas and LNG operating netback increased 22% to $4.90 per Mcf for the three months ended March 31, 2024, compared to $4.01 per Mcf for the same period in 2023. The increase is largely due to a 19% increase in average sales prices of firm long-term fixed-priced contracts to $6.04 per Mcf for the three months ended March 31, 2024, compared to $5.09 per Mcf for the same period in 2023. Total revenues, net of royalties and transportation expenses for the three months ended March 31, 2024 increased 5% to $77.7 million, compared to $73.9 million for the same period in 2023, mainly due to higher average sales price, net of transportation expenses, offset by a decrease in realized natural gas and LNG sales volume. Realized contractual natural gas sales volume decreased 19% to 150.4 MMcfpd for the three months ended March 31, 2024, compared to 185.6 MMcfpd for the same period in 2023. However, as reported in the Corporation's April 29, 2024 news release, natural gas sales volume averaged 164 MMcfpd for the latter half of April 2024. The Corporation realized a net income of $3.7 million for the three months ended March 31, 2024, compared to a net income of $16.9 million for the same period in 2023. The decrease in net income for the three months ended March 31, 2024 is driven by a non-cash deferred income tax expense of $0.5 million as compared to a deferred income tax recovery of $17.4 million in 2023. Net cash capital expenditures for the three months ended March 31, 2024 was $35.9 million compared to $47.1 million for the same period in 2023. As at March 31, 2024, the Corporation had $25.1 million in cash and cash equivalents and $11.2 million in working capital deficit. Annual General Meeting of Shareholders The Corporation will hold its Annual General Meeting of Shareholders ("AGM") at 8:00 am (EST) on June 27, 2024 in Bogota, Colombia, at the Hotel NH Collection Teleport. The Corporation will provide a toll free dial-in for participants to attend the AGM. Outlook The Corporation's long-term plan is focused on a) maintaining and growing Canacol's reserve base and production from its core assets in the Lower Magdalena Valley Basin ("LMV"), targeting the full use of existing transportation infrastructure; b) exploring high impact exploration opportunities in the Middle Magdalena Valley Basin ("MMV"); c) strategic entrance into the gas market in Bolivia, and d) continue to develop and improve in the area of ESG. For 2024, the Corporation remains focused on the following objectives: 1)  In line with maintaining and growing Canacol's reserves and production in its core gas assets in the LMV, the Corporation is executing comprehensive development and exploration programs. The Corporation aims to optimize its production and increase reserves by drilling up to five development wells, install new compression and processing facilities, and workover operations of producing wells in the Corporation's key gas fields. The Corporation has completed the drilling of two successful exploration wells, Pomelo-1 and Chondaturo-1, and two successful development wells, Clarinete-10 and Chontaduro-2. The Chontaduro-2 well was recently completed and tested at 12 MMcfpd, and is currently producing into the Jobo gas treatment facility. Through these above mentioned activities, the Corporation managed to stabilize its gas sales at an average rate of 150 MMcfpd during Q1 of 2024, and lifted gas sales to approximately 169 MMcfpd by the end of April 2024. The Corporation expects to drill the higher impact Cardomomo-1 exploration well in mid-summer of 2024. These development and exploration activities are planned to support Canacol's robust EBITDA generation and allow the Corporation to capitalize on strong market dynamics in 2024. 2)  Maintaining a low cost of capital, cash liquidity and balance sheet flexibility to invest for the long term. In a year of expected, highly supportive gas market dynamics, the Corporation is tactically prioritizing investments in the LMV and has therefore decided to postpone drilling of the Pola-1 exploration well located in the MMV to 2025. On April 26, 2024, the Corporation sold its non-core investment in Arrow for gross proceeds of $13.8 million to add additional liquidity. As at April 30, 2024, the Corporation had a cash balance of approximately $30 million, not including the Arrow share sale proceeds, which trade settled on May 3, 2024. 3)  Bolivia: achieve the government's approval of a fourth E&P contract that covers an existing gas field reactivation, to begin development operations with a view to adding reserves and production and commencing gas sales in 2025. 4)  Continue with the Corporation's commitment to its environmental, social and governance strategy. FINANCIAL & OPERATING HIGHLIGHTS(in United States dollars (tabular amounts in thousands) except as otherwise noted) Financial Three months endedMarch 31, 2024 2023 Change Total revenues, net of royalties and transportation expense 77,691 73,913 5% Adjusted EBITDAX(1) 61,041 60,928 —% Adjusted funds from operations(1)