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Canacol Energy Closes Shona Energy Transaction

Canacol Energy Ltd. (CNE.TO) announced the formal closing of the Shona Energy Company, Inc. transaction.

Under the terms of the arrangement, Canacol acquired 100% of the issued and outstanding class "A" common shares of Shona in exchange for 0.10573 of a post-consolidation common share of Canacol and $0.0896 cash for each Shona common share, and 100% of the issued and outstanding series "A" preferred shares of Shona in exchange for US$100 cash for each Shona preferred share. The consideration represents a value of approximately $0.56 per Shona common share.

Charle Gamba, CEO and President of Canacol, stated: "The Shona assets bring Canacol 17 million standard cubic feet per day of net gas production (2,700 barrels per day of oil equivalent) under long term contracts, 95 billion cubic feet of net proved plus probable reserves (15.8 million barrels of oil equivalent) and significant gas and conventional heavy oil upside on four exploration contracts in Colombia, making Canacol the fifth largest public exploration and production company in Colombia on a reserves basis."

CNE shares fell 8% to $2.95.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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