/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR
DISSEMINATION IN THE U.S./
CALGARY,
May 27, 2014 /CNW/ - Canacol Energy
Ltd. ("Canacol" or the "Corporation" - TSX:CNE; OTCQX:CNNEF;
BVC:CNEC) is pleased to announce that it has closed a bought deal
equity financing announced on May 6,
2014. The Corporation issued 15,823,000 common shares of
Canacol (the "Common Shares") at a price of $7.90 per Common Share for gross proceeds of
$125,001,700 (the "Offering"). The
Offering was underwritten by a syndicate of underwriters led by
Canaccord Genuity Corp. and including TD Securities Inc., CIBC,
Cormark Securities Inc., Desjardins Securities Inc., GMP Securities
L.P. and Mackie Research Capital Corporation (collectively, the
Underwriters").
The Corporation granted the Underwriters an
option to purchase up to 15% additional Common Shares (the
"Over-Allotment Option"), exercisable for a period of 30 days
following the date of closing to cover over-allotments, if any.
Canacol plans to use approximately $62.9 million of the net proceeds from the
Offering to expand its calendar 2014 capital program, including two
additional exploration wells and seven additional development wells
on the Corporation's LLA-23 and Santa Isabel E&P contracts,
while the remainder is expected to be used for future capital
expenditure activities, working capital and general corporate
expenses.
The securities offered have not been and will
not be registered under the U.S. Securities Act of 1933, as
amended, and may not be offered or sold in the United States absent registration or an
available exemption from the registration requirements
thereof. This press release shall not constitute an offer to
sell or the solicitation of an offer to buy nor shall there be any
sale of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful.
About Canacol Energy Ltd.
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 of America, and the Colombia
Stock Exchange under ticker symbol CNE, CNNEF, and CNE.C,
respectively.
Forward-Looking Statements
This press release contains certain
forward-looking statements within the meaning of applicable
securities law. Forward-looking statements are frequently
characterized by words such as "plan", "expect", "project",
"intend", "believe", "anticipate", "estimate" and other similar
words, or statements that certain events or conditions "may" or
"will" occur, including without limitation statements relating to
estimated production rates from the Corporation's properties and
intended work programs and associated timelines. Forward-looking
statements are based on the opinions and estimates of management at
the date the statements are made and are subject to a variety of
risks and uncertainties and other factors that could cause actual
events or results to differ materially from those projected in the
forward-looking statements. The Corporation cannot assure that
actual results will be consistent with these forward looking
statements. They are made as of the date hereof and are subject to
change and the Corporation assumes no obligation to revise or
update them to reflect new circumstances, except as required by
law. Prospective investors should not place undue reliance on
forward looking statements. These factors include the inherent
risks involved in the exploration for and development of crude oil
and natural gas properties, the uncertainties involved in
interpreting drilling results and other geological and geophysical
data, fluctuating energy prices, the possibility of cost overruns
or unanticipated costs or delays and other uncertainties associated
with the oil and gas industry. Other risk factors could include
risks associated with negotiating with foreign governments as well
as country risk associated with conducting international
activities, and other factors, many of which are beyond the control
of the Corporation.
SOURCE Canacol Energy Ltd.