Canacol Energy Ltd. and Shona Energy Company, Inc. are pleased to jointly announce that Institutional Investor Services (ISS) and Glass Lewis & CO. (GL), leading proxy advisory firms, have recommended that shareholders of Canacol and Shona vote in favour of the plan of arrangement under which Canacol will acquire all of Shona's outstanding shares.

The ISS report concludes that "in view of the expected strategic benefits and absence of any significant governance concerns, a favourable vote by shareholders for the merger is warranted".

The transaction will enable the combined company to take a leading role in Colombia's expanding energy market at a low entry price, resulting in an expanded reserves base and more diversified asset portfolio. Shona will add three conventional heavy oil exploration contracts to Canacol's extensive exploration position in the Caguan - Putumayo basin.

Tags: Canacol Energy Inc., Shona Energy Company