Canacol Energy Ltd.

Canacol Energy Ltd.

April 24, 2009 19:46 ET

Canacol Energy Ltd. Announces Renewal of Short-Term Loan

CALGARY, ALBERTA--(Marketwire - April 24, 2009) - Canacol Energy Ltd. ("Canacol" or the "Corporation") (TSX VENTURE:CNE) is pleased to announce that it has today renewed a short-term loan (the "Loan") in the amount of $535,000. The Loan bears interest at a rate of 15% per annum, compounded annually. The Loan will become payable in full on June 4th, 2009 ("Maturity Date"). The Lender will received a bonus of common shares of Canacol equivalent to 10% of the value of the Loan based upon the closing price of such shares on the day immediately preceding the date of renewal the Loan. Further, in the event that Canacol does not repay the loan on the Maturity Date, the Lender will be issued common shares of Canacol equivalent to 16% of the value of the Loan based upon the closing price of such shares on the Maturity Date. As part of the Loan, the Corporation will pay a 5% commission by way of cash and common shares in the Corporation to a firm who is an arm's-length party to the Corporation.

This press release may contain statements within the meaning of safe harbour provisions as defined under Securities Laws and Regulations. The above statements are based on the current expectations and beliefs of Canacol's management and are subject to a number of risks and uncertainties that may cause the actual results to differ materially from those described above.

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. 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. A barrel of oil equivalent (boe) is derived by converting gas to oil in the ratio of six thousand cubic feet of gas to oil and may be misleading, particularly if used in isolation. A boe conversion is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead, especially in various international jurisdictions.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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