CALGARY, Alberta, Nov. 07, 2025 (GLOBE NEWSWIRE) — Canacol Energy Ltd. (“Canacol” or the “Company”) announces that it has been notified of a decision rendered in internal arbitration proceedings initiated by VP Ingenergía SASESP at the Center for Arbitration and Conciliation of the Bogotá Chamber of Commerce and Industry.
The arbitration considered the termination of three natural gas supply contracts that were terminated by Canacol due to contractual violations by VP Ingenergía, including failure to provide contractual guarantees and non-payment for gas supplied. During the proceedings, the connection of these facts with the occurrence of force majeure circumstances faced by Canacol in 2023 was also considered.
The arbitral tribunal decided to accept Canacol's arguments regarding the invalidity of the guarantees provided by VP Ingenergía and VP Ingenergía's mishandling of the proceeds from the sale of gas, on the other hand partially satisfying VP Ingenergía's claims regarding force majeure. The end result of the tribunal's decision against each party is that Canacol must pay approximately US$22 million. This decision has not yet been finalized, as it is subject to clarification and addition, in connection with which the decision will come into force on November 20, 2025.
Accordingly, the Company is reviewing this decision in light of the bills that VP Ingenergía still owes, as well as payment orders against VP Ingenergía in favor of Canacol issued by various Colombian judges totaling approximately US$25 million.
In addition, Canacol is filing a claim in an international arbitration court in which VP Ingenergía is the defendant and in which amounts are claimed in excess of US$76 million, while VP Ingenergía does not have any economic claims against Canacol. Canacol's case before the international tribunal is supported by the national tribunal's acknowledgment that the contracts were terminated by Canacol for good reason and the Company therefore expects a positive outcome in such a process, which is estimated to be completed in the first half of 2026.
Likewise, Canacol will submit the domestic arbitration decision to the Attorney General's Office because it has been proven that the guarantees provided by VP Ingenergía did not guarantee the contracts entered into with Canacol, and that VP Ingenergía breached its duties of good faith by carrying out the unjustified withdrawal of trust funds that were intended to pay VP Ingenergía's obligations in favor of Canacol. The above will have a direct impact on the criminal cases brought against the directors and shareholders of VP Ingenergía, in particular Mr. Alvaro Augusto Vargas Bravo (owner of VP Ingenergía SASESP), Patricia Peña (his wife) and Darlene Yesenia Neira (legal representative of the company), against whom the country's Attorney General's Office has filed charges together with a request for preventive detention measures for various offenses, including fraud and aggravated corruption, for acts and facts directly related to differences between the parties in domestic arbitration proceedings, which were decided in favor of Canacol by the national arbitral tribunal, as noted above.
We reiterate that Canacol is currently reviewing the full contents of the arbitration award and will evaluate the potential filing of any appeals or legal action if necessary.
Canacol insists it will continue to rely on the Colombian justice system.
About Kanakol
Canacol is a natural gas exploration and production company based in Colombia. The Corporation's shares are traded on the Toronto Stock Exchange under the symbol CNE, on the OTCQX in the United States under the symbol CNNEF, and on the Bolsa de Valores de Colombia under the symbol CNEC.
This press release contains certain forward-looking statements within the meaning of applicable securities laws. Forward-looking statements are often characterized by words such as “plan,” “anticipate,” “project,” “target,” “intend,” “believe,” “anticipate,” “estimate,” and other similar words, or statements that certain events or conditions “may” or “will” occur, including, without limitation, statements regarding expected rates of production at the Corporation's facilities, as well as anticipated work programs and related timing. Forward-looking statements are based on management's opinions and estimates as of the date they 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 guarantee 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 undertakes no obligation to revise or update them to reflect new circumstances, except as required by law. The information and recommendations provided herein supersede any forward-looking information provided in previous disclosures. Prospective investors should not place undue reliance on forward-looking statements. Additional information regarding the risks and uncertainties associated with Canacol and its securities can be found in Canacol's disclosure documents filed with the securities regulatory authorities, available at: www.sedar.com th www.superfinanciera.gov.co.
