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Canacol Power Ltd. (“Canacol” or the “Firm”) declares that it has been notified of the choice issued within the home arbitration proceedings initiated by VP Ingenergía S.A.S. E.S.P. earlier than the Arbitration and Conciliation Heart of the Bogotá Chamber of Commerce.
The arbitration addressed the termination of three pure gasoline provide contracts, which had been terminated by Canacol as a result of VP Ingenergía’s contractual breaches, together with the failure to offer the contractually required ensures and the failure to pay for gasoline delivered. Through the proceedings, the connection between these info and the incidence of a drive majeure occasion skilled by Canacol in 2023 was additionally examined.
The arbitral tribunal determined to just accept Canacol’s arguments relating to the invalidity of the ensures supplied by VP Ingenergía and the irregular method through which VP Ingenergía dealt with proceeds from the sale of gasoline, whereas however partially upholding VP Ingenergía’s claims with respect to the drive majeure occasions. The web impact of the tribunal’s ruling towards every of the events is that Canacol has to pay roughly USD $22 million. This choice will not be but perfected, as it’s topic to clarification and supplementation, and due to this fact the award will turn into binding on November 20, 2025.
On this regard, the Firm is reviewing this choice in mild of the invoices that VP Ingenergía nonetheless owes, in addition to the fee orders towards VP Ingenergía in favor of Canacol issued by totally different Colombian judges, totalling USD $25 million roughly.
Moreover, Canacol is pursuing a world arbitral tribunal through which VP Ingenergía is the respondent and through which quantities exceeding USD $76 million are claimed, with out VP Ingenergía having any financial declare towards Canacol. Canacol’s case within the worldwide tribunal is strengthened by the popularity of the home tribunal that the contracts had been terminated by Canacol for simply trigger, and due to this fact the Firm expects a constructive consequence in such course of, which is estimated to conclude through the first half of 2026.
Likewise, Canacol will submit the home arbitral choice to the eye of the Workplace of the Legal professional Common of the Nation, because it was proved that the ensures supplied by VP Ingenergía didn’t safe the contracts entered with Canacol and that VP Ingenergía breached its duties of fine religion by making unjustified withdrawals of the belief funds, which had been meant for the fee of VP Ingenergía’s obligations in favor of Canacol. The foregoing could have a direct impression on the prison actions being pursued towards VP Ingenergía’s administrators and shareholders, particularly Mr. Álvaro Augusto Vargas Bravo (proprietor of VP Ingenergía S.A.S. E.S.P.), Patricia Peña (his partner) and Darlyn Yesenia Neira (authorized consultant of the corporate), in relation to which prices have been filed by the Workplace of the Legal professional Common of the Nation, together with a request for preventive detention measures, for varied offenses, together with aggravated fraud and corruption, for acts and info associated on to the variations between the events within the home arbitration continuing, which had been determined in favour of Canacol by the home arbitration tribunal as famous above.
We reiterate that Canacol is at present reviewing the total content material of the arbitral choice and can analyse the potential submitting of any appeals or authorized actions as acceptable.
Canacol insists that it’ll proceed to depend on the Colombian justice system.
About Canacol
Canacol is a pure gasoline exploration and manufacturing firm with operations centered in Colombia. The Company’s shares are traded on the Toronto Inventory Trade underneath the image CNE, the OTCQX in the US of America underneath the image CNNEF, the Bolsa de Valores de Colombia underneath the image CNEC.
This press launch accommodates sure forward-looking statements throughout the which means of relevant securities legislation. Ahead-looking statements are incessantly characterised by phrases similar to “plan”, “count on”, “venture”, “goal”, “intend”, “consider”, “anticipate”, “estimate” and different related phrases, or statements that sure occasions or situations “might” or “will” happen, together with with out limitation statements regarding estimated manufacturing charges from the Company’s properties and meant work applications and related timelines. Ahead-looking statements are based mostly on the opinions and estimates of administration on the date the statements are made and are topic to quite a lot of dangers and uncertainties and different components that might trigger precise occasions or outcomes to vary materially from these projected within the forward-looking statements. The Company can’t guarantee that precise outcomes might be according to these forward-looking statements. They’re made as of the date hereof and are topic to vary and the Company assumes no obligation to revise or replace them to replicate new circumstances, besides as required by legislation. Data and steering supplied herein supersedes and replaces any ahead trying info supplied in prior disclosures. Potential traders shouldn’t place undue reliance on ahead trying statements. Additional info relating to the dangers and uncertainties associated to Canacol and its securities could be discovered within the disclosure paperwork filed by Canacol with the securities regulatory authorities, out there at www.sedar.com y www.superfinanciera.gov.co
For extra info please contact Investor Relations: South America: +571.621.1747 IR-SA@canacolenergy.com World: +1.403.561.1648 IR-GLOBAL@canacolenergy.com http://www.canacolenergy.com
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