CALGARY, ALBERTA--(Marketwire - March 30, 2012) - Canacol Energy Ltd. ("Canacol" or the "Corporation") (TSX:CNE)(BVC:CNEC) reports that C&C Energia Ltd. (the "Operator") has finished the drilling and testing of the Tardigrado-1 well in the Andaquies Exploration & Production ("E&P") contract located in Colombia and has subsequently abandoned the well. The Tardigrado-1 well encountered 60 feet of sandstone from the Caballos reservoir with an average porosity of 19%. The Caballos reservoir was perforated and tested in the intervals from 4,413 to 4,430 feet and between 4,442 to 4,445 feet. Swab tests from both intervals produced fresh water with slight traces of oil.

The Tardigrado-1 well data indicates that oil shows from the Caballos reservoir may represent a residual oil accumulation in a structure that was flushed by fresh water after the original oil was trapped in the structure. After evaluation of all drilling and seismic data, the Operator and Canacol will determine the future exploration plans for the Andaquies E&P contract.

The Tardigrado-1 well is the second exploration well on the Andaquies E&P contract (114,875 gross acres) located in the northern Putumayo Basin in Colombia. Canacol has a 36% non-operated working interest in the contract.

Canacol is a Canadian-based international oil and gas corporation with operations focused onshore in Colombia and Ecuador. Canacol is publicly traded on Toronto Stock Exchange (TSX:CNE) and the Bolsa de Valores Colombia (BVC:CNEC). The Corporation's public filings are available at [ www.sedar.com ].

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, including without limitation statements relating to estimated production rates from the Corporation's properties and intended work programs and associated timelines. 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.

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