CALGARY, Alberta, Dec. 09, 2025 (GLOBE NEWSWIRE) -- Canacol Energy Ltd. (TSX:CNE) (OTCID: CNNEQ) (BVC: CNEC) ("Canacol" or the "Company") announces that it has entered into an agreement with an ad hoc group of holders of the Company's 5.75% senior unsecured notes due 2028 (the "DIP Credit Agreement") for debtor-in-possession financing (the "DIP Financing"), comprised of a U.S.$45 million delayed-draw new-money term loan (the "Term Loan Tranche") with capacity to obtain additional commitments to issue up to U.S.$22 million in letters of credit to renew and/or replace certain existing letters of credit (the "LC Tranche"). The DIP Financing will bear customary DIP interest and fees, will mature on June 30, 2026 (with a three-month extension option subject to conditions), and, subject to court approval, will be secured by a court-ordered super-priority charge over all of the Company's and its operating subsidiaries' assets, subject only to a court-ordered super priority administration charge granted in the CCAA (as defined below) proceedings.

Proceeds of the DIP Financing will be used to fund ongoing operations and restructuring costs and, with proceeds from the LC Tranche, to facilitate the renewal or replacement of required letters of credit, all in accordance with cash flow forecasts as approved by the DIP Lenders and subject to the other terms and conditions of the DIP Credit Agreement. Initial funding of U.S.$15 million of the Term Loan Tranche will be available subject to customary conditions precedent, including entry of a DIP approval order by the Court of King's Bench of Alberta and recognition of such order by the US Bankruptcy Court in the Company's Chapter 15 proceedings in the United States. Availability of the remaining U.S.$30 million of the Term Loan Tranche is ...