Canacol Energy Closes Initial Advance Under DIP Financing

Executive Summary

• Canacol Energy confirmed receipt of the U.S. $15 million initial advance under its DIP Commitment Letter.
• The company is targeting a second DIP advance of U.S. $30 million, expected as early as Jan 30 2026 and to be completed no later than Feb 15 2026, subject to satisfaction or waiver of conditions precedent.
• Material non‑public information related to the DIP financing has been posted on the Monitor’s website for stakeholder review.

Key Details

• The DIP Financing and associated Commitment Letter were approved by the Alberta Court of King’s Bench (Canadian Court) on Dec 11 2025 and recognized by the U.S. Bankruptcy Court (Southern District of New York) on Dec 18 2025 under Chapter 15 proceedings.
• Net proceeds from the initial U.S. $15 million advance have been received following satisfaction/waiver of all conditions precedent.
• The DIP Commitment Letter provides for a second advance of U.S. $30 million, with funding targeted for Jan 30 2026 and completion required by Feb 15 2026, contingent on meeting the applicable conditions precedent.
• Canacol is working with its court‑appointed Monitor (KPMG Inc.) and DIP lenders to satisfy remaining conditions for subsequent advances.
• Material non‑public information (MNPI) disclosed to DIP lenders has been posted at https://kpmg.com/ca/canacol for public access via the Monitor’s website.
• Ongoing updates regarding the CCAA and Chapter 15 proceedings will be published on the Monitor’s site; stakeholders are advised to monitor it for further material information.

Notable Quotes

(No direct quotes were provided in the release.)