Canacol Energy Ltd. reported pro forma basis production results for the month ended December 2012. The company reported average production for the month of December 2012 was 8,366 boepd before royalties, stated on a pro forma basis to include the results of the recently acquired production assets of Shona Energy Company Inc.

For the year 2013, the company provided its 2013 capital program and production guidance. The Corporation plans to spend gross capex of $67 million in calendar 2013 on drilling, work overs, seismic, production facilities, and pipelines in Colombia and Ecuador, and anticipates net average production before royalties of between 7,500 and 8,500 barrels of oil equivalent per day. Net before royalty gas production from the Esperanza field located in Colombia is anticipated to average approximately 3,000 boepd.

In calendar 2013, the company plans to drill 8 gross exploration wells on its blocks in Colombia targeting a management estimate of 316 million net barrels unrisked (48 million barrels risked) of mean prospective oil resource. Light oil exploration drilling activities for 2013 will focus on the Corporation's LLA 23 block in the Llanos Basin, and the Santa Isabel, VMM2 and VMM3 blocks in the Middle Magdalena Basin, where the Corporation has recently experienced exploration success (the Labrador discovery on LLA23, and the Mona Arana discovery on VMM2). ExxonMobil Exploration Colombia and Shell Colombia will be carrying the cost of one exploration well on each of VMM2 and VMM3 respectively in 2013. Conventional heavy oil exploration efforts will focus on the Corporation's blocks located in the Caguan - Putumayo Basin of Colombia. The Corporation plans to drill 7 gross development wells and workover 16 existing producing wells in its fields located in Colombia and Ecuador. The Corporation plans to spend approximately $46 million gross capex on its activities in Colombia, and approximately $21 million gross capex on its activities in Ecuador. Funding for the 2013 capital program is expected to come from existing working capital, operating cash flows and debt facilities.