This presentation may include certain forward looking statements. - - PowerPoint PPT Presentation

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This presentation may include certain forward looking statements. All statements other than statements of historical fact, included herein, including, without limitation, statements regarding future plans and objectives of Canacol Energy Ltd. (“ Canacol” or the “ Corporation” ), are forward-looking statements that involve various risks, assumptions, estimates, and uncertainties. These statements reflect the current internal projections, expectations or beliefs of Canacol and are based on information currently available to the Corporation. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. All of the forward looking statements contained in this presentation are qualified by these cautionary statements and the risk factors described above. Furthermore, all such statements are made as of the date this presentation is given and Canacol assumes no obligation to update or revise these statements. An investment in Canacol is speculative due to the nature of the Corporation's business. The ability of the Corporation to carry out its growth initiatives as described in this confidential presentation is dependent on Canacol obtaining additional capital. There is no assurance that the Corporation will be able to successfully raise the capital required or to complete each of the growth initiatives

• described. Investors must rely upon the ability, expertise, judgment, discretion, integrity, and good faith of the Management of the

Corporation. Barrels of Oil Equivalent Barrels of oil equivalent (boe) is calculated using the conversion factor of 5.7 Mcf (thousand cubic feet) of natural gas being equivalent to one barrel of oil. Boes may be misleading, particularly if used in isolation. A boe conversion ratio of 5.7 Mcf:1 bbl (barrel) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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Definition Prospective resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance

• f discovery and a chance of development.

Cautionary Statement There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources Further Cautionary Statement for Risked Prospective Resources These are partially risked prospective resources that have been risked for chance of discovery, but have not been risked for chance

• f development. If a discovery is made, there is no certainty that it will be developed or, if it is developed, there is no certainty as to

the timing of such development.

(1 ) Pre-royalty 2P reserves + deemed volumes and pre-tax NPV-1 0 as of Jun ‘1 3 and Dec ‘1 3 (D&M reserve reports). These figures do not reflect production volumes since the date of D&M’s reserve reports (2) Management’s estimate for net risked recoverable prospective resources

4

Diversified base production

Portfolio 5 basins / 8 fields Enterprise value US $ 723 million 2P reserves + DV 41 MMboe / US $ 846 million(1

)

Long reserve life ~9 years

Exploration upside

Portfolio 23 contracts / 1 .8 million net acres Prospective resources ~21 0 MMboe(2) World-class partners ConocoPhillips, ExxonMobil, Shell

56 gross wells (39 remaining) + 1 3 workovers

Diversified across 5 basins in Colombia and Ecuador ~$44 million capex in calendar 1 Q ‘1 4(1

)

43 gross development wells (28 remaining)

Calendar ‘1 4e 1 2,500-1 3,500 boepd(2) Y/Y growth 40-50% ~65%

• il / ~25%

gas Calendar ’1 4 exit ~1 7,000 boepd(2)

1

3 gross exploration wells (1 1 remaining)

~85%

• f exploration capex committed around existing fields

‘1 4e: Targeting prospective resources 89 MMboe / 31 MMboe(3)

(1 ) Excludes business acquisition (2) Pre-royalty average net production (2) Management’s estimate for net unrisked / risked recoverable prospective resources

5

1 0,000 20,000 30,000 40,000 50,000 '1 3a '1 4e '1 5e '1 6e '1 7e '1 8e '1 9e '20e

Nearly triple production from existing 2P reserves over the next 3 years

Calendar year average production positioned on x-axis labels Pre-royalty avg net production (boepd)

$581 $723 $1 ,546 $265 $708 $1 90 $81 $- $500.0 $1 ,000.0 $1 ,500.0 $2,000.0 $2,500.0

Proven Probable Possible EV Upside

Exploration upside

2P reserves + DV

41 MMboe / US $ 846 million

Prospective resources

~21 0 MMboe / US $2.3 billion

6

Pre-royalty 2P reserves + deemed volumes and pre-tax NPV-1 0 as of Jun ’1 3 and Dec ‘1 3 (D&M reserve reports). These figures do not reflect production volumes since the date of D&M’s reserve reports Management’s estimate for net risked recoverable prospective resources

Guidance ~1 3,000 boepd for calendar year ‘1 4e 8 fields ~$62 / barrel netbacks at LLA 23

Pre-royalty avg net production (boepd) Corp avg netback (/boe) Producing

7

Rancho Hermoso tariff oil Gas

$- $5 $1 $1 5 $20 $25 $30 $35 $40 $45

• 2,000

4,000 6,000 8,000 1 0,000 1 2,000

Operated 80% WI Strong $62/barrel netback Accelerate production and reserves growth Up to 9 wells left in ‘1 4 Up to 6 development 3 exploration (Tigro-1 , Pointer-1 , Maltes-1 ) 1 ‘08

Rancho Hermoso Field

13 for 13

~1 5,000 net bopd at peak 2 ‘1

2

Labrador Field

4 for 4

Spud Lab-4 on April 30 3 ‘1

3

Leono Field

2 for 2

Set to spud Leono-3 4 ‘1

4

Pantro Field

1 for 1

Tigro-1 5 M M bls(1

)

LLA 23

~50 MMbls pursuit(1

)

Rancho Hermoso

Fault Oil fields Leads

8

Pointer-1 2 M M bls(1

) (1 ) Management’s estimate of net unrisked recoverable prospective resources

Labrador Leono Pantro

3D 3D

2 1 3 4

Maltes-1 2 M M bls(1

)

Barco Gacheta Ubaque Mirador C7

20 straight successful wells at 4 fields Rancho Hermoso Labrador Leono Pantro

Dec ‘09 Dec ‘1 2 Dec ‘1 3 May ‘1 4 1 3 4 2 1 6 3 4 5 Field Discovery Wells Reservoirs

Source ANH: Digitally reproduced stratigraphic column for the Eastern Llanos basin (Casanare) Shales Sandstones

Tested 2,930 bopd Tested 1 ,038 bopd Guadalupe

LLA 23

9

LLA 23

1

Lab

4-for-4 at Labrador

Tests 1 ,800 bopd Lab-4 results imminent

Stacked pay mitigates risk Pointer/Maltes coming soon $62/bbl netback

P A-1 ST L-5 L-2 L-3 L-4 L-6c A M -1 P Pointer-1 2 MMbls(1

)

A Lab-4 Lab-2

G,U

Lab-3

C 7,G,U

Lab-5

C 7,G

A-1 ST

C 7,G,U

Lab-6c M altes-1 2 MMbls(1

) Agueda pad Pointer pad 2km (1 ) Management’s estimate

80% WI 3 confirmed reservoirs

C7, G, U 2 displayed: C7 and G

P-1

Leono-2 Leono-3 Leono-1 Pantro-2 Tigro-2c Pantro-3 Tigro-3c L-3 P-1 P-2 P-3 T-2c T-3c L-1 L-2

2km

Pantro-1

Tigro pad Lanceros pad

L T Tigro-1 5 MMbls(1

)

L T

Leono Pantro Tigro 80% WI 4 confirmed reservoirs

M, B, G, U 2 displayed: B, G

6 month

payback/well

OWC @ 1 0,346 ft OWC @ 9,446 ft

1 1

4 solid results

Test rate Leono-1(B) 1 ,490 net bopd Leono-2(B) 2,406 Pantro-1

(G)

2,344 Pantro-1

(M)

830

(1 ) Management’s estimate

Tigro-1

LLA 23 Pantro Leono

LLA 23

Las Maracas Macarenas Heredia Saimiri Zopilote Cravo E Cravo S Mateguaia Fault Oil fields Leads

1 2

In Jun ‘1 4, shoot 400 sq km

• f 3D seismic to firm up ‘1

5 and ‘1 6 drilling locations 1 1 5k gross acres One of the largest E&P contracts 1 0x the 3D seismic coverage

Sandstones Shales Limestones

Conventional Unconventional Umir La Luna Simiti Tablazo Paja Rosablanca Colorado Mugrosa Esmeraldas La Paz Lisama

1 3

VMM 2

VMM 3 Santa Isabel

M A-1

MA-1 40% WI shallow 20% WI deep

VMM 2

VMM 2 Jan ‘1 3, Mono Araña-1 discovery at VMM 2

Shallow conventional

WI 40% Operator Vetra E&P Net oil pay (Lisama) 85 ft Up and Low Lisama tests 703 / 727 gross bopd, 21

• Comingled test

1 ,043

Deep unconventional

Same source rock as prolific Maracaibo basin (250 b barrels) 3-6x the thickest shale basin in the world (Vaca Muerta) WI 20% Operator Exxon Net oil pay (La Luna) 230 ft LT production test of La Luna

pipeline

1 km Top Lisama depth (3) Represents comingled gross production test results for ~ 1 mo Management’s estimate of gross / net production

1 00 mmbls OOIP(1

)

25 / 1 0 mmbls prospective resources(2)

MA-1 A next…

2 for 2 at MA

3 6 4 1 2

VMM 2 40% WI ‘1 4e activities Drill 3 development wells

5

1 4

MA-1 MA-2

72 ft pay U Lisama 1 72 ft pay B Lisama 85 ft pay U+ L Lisama 21

API

Tested 1 k bopd(3)

(1 ) Management’s estimate for Basal Lisama only (2) Management’s estimate of gross / net recoverable prospective resources for Basal Lisama only

Esperanza 1 00% WI Solid LT gas contracts + strong pricing / netback + minimal development capital Asset ranks in the top 5% in Colombian reserve life 2P reserves 22.6 mmboe(1

)

Current producction ~3,000 boepd Reserve life 20-yrs Exploration upside Jun ‘1 4e activities Commence 3 exploration wells 20.3 / 1 0.4 mmboe prospective resources(2) Existing contract ‘1 4’21 e 2,800 boepd @ ~$4/mmbtu 2 new contracts will triple production in Dec ‘1 5e ’1 5e’20e 6,1 40 boepd @ $5.40/mmbtu >8,900 boepd in Dec ‘1 5e

Corozo Palmer Cañandonga 1 3 2

Nispero

Prospects Leads Producing fields

Katana

Nelson

Arianna

Cana Flecha Jobo station Pipeline to mine

(1 ) Reserve report effective Dec ‘1 3 (2) Management’s estimate for net unrisked/risked recoverable prospective resources

pipeline

Esperanza

1 5

A

Palmer-1 (P-1 ) exploration

B C

P-1

A B C

N-3 N-2 N-4

Max closure at 6600ft ss Upper Porquero Upper Cienaga de Orgo

(1 ) Reserve report effective Jun ’1 3 (2) As of Mar ‘1 4, the Corporation had spent ~$45 million

Mature fields w/ 1 5-yr risked service contract Producing > 30 years / >1 30 wells Partners Tecpetrol, Schlumberger, Sertecpet Terms Incremental oil + exploration Insensitive to oil prices $38.54/bbl above base curve State pays all opex Gross/net capital $334 mm / $93 mm(2) New wells + workovers 31 + >40 Facilities + waterflood pilot Current net production ~1 ,800 bopd Remaining ‘1 4e activities Drill 6 development 5 workovers 1 exploration

• 2,000

4,000 6,000 8,000 1 0,000 1 2,000 1 4,000 1 6,000 1 8,000

Jan-12 Jan-14 Jan-16 Jan-18 Jan-20 Jan-22 Jan-24 Jan-26

2P deemed volumes of 4 mmbls(1

)

Net incremental 1 0.5 mmbls over contract life

Base Incremental

’1 6e peak ~2,500 net to Canacol

bopd

1 7 Oct’1 2 ’1 4e ’1 6e ’1 8e ’20e ’22e ’24e ’26e Current 1 8,1 32 bopd gross

25% JV equity interest

3 2 1 4 6 COR 4 COR 1 2 VMM 3 VMM 2 COR 1 1 COR 39 Santa Isabel 5 7

N

N S

The motivation is crystal clear

‘93 ‘1 2, Colombia’s oil reserve life has decreased from 1 9 7 years Shale solution to Colombia’s reserves

Canacol has the 2nd largest shale land position in Colombia Objective: Repeat North farm-out performance in the South

S

COR 62 $263/acre

1 8

‘1 4e: 1 1 wells 5 fracs $240 mm capex ’1 6e >25,000 bopd defined shale oil area(1

) Proposed wells (1 ) ~1 .5 mm acres of prospective La Luna shale oil in the Middle Magdalena Basins, EIA Jun ‘1 3

1 9 La Luna Totumal 1

• 5

Produced 800k bbls La Luna Olivo-1 Tested 6,400 bopd Catalina-1 Tested 7,820 bopd

Santa Isabel VM M 3 VM M 2

Buturama 1

• 4

Produced 500k+ bbls

Mono Araña-1 LT test

Rosablanca OP-1 El Cejudo-1 Pico Plata-1

Multiple shale zones Sweet spot

Santa Isabel discoveries (Lisama & Umir) VMM 2 discoveries (Lisama & La Luna)

OP-1 MA-1 Tested 590 bopd 21

API

W E

20

Conventional production test of thick, tectonically-induced fractured shale Expansive volume of unfractured shale best suited for frac-induced technology

Santa Isabel VMM 3

VMM 2 MA-1

OP-1

ROSA ROSA + LUNA LUNA

Development

LLA 23 (Labrador, Leono, Pantro) VMM 2 Ecuador Capella Rancho Hermoso

(1 ) Management’s estimate of net unrisked/risked recoverable prospective resources (2) Represents net average production before royalties

21

‘1 4e guidance 43 development wells 1 3 workovers 1 2,500 – 1 3,500 boepd(2)

Exploration upside

‘1 4e T

• tal

HEAVY

Capella: Chipo 1 3.3/0.8

Q 3 ‘1 4e Q 4 ‘1 4e Q 2 ‘1 4e SHALE

VMM 3: Picoplata 1 54.8/1 3.7 VMM 2

GAS

Esperanza: Palmer, Corozo, Canandonga 3 20.3/1 0.4 1 1 89/31 mmboe

LIGHT

LLA 23: Pointer, Tigro, Maltes 3 8.3/4.7 mmbls CLT: Guepardo 1 1 .3/0.7 Santa Isabel: Morsa 1 0.3/0.2 Ecuador: Secoya Oeste 1 1 .0/0.4

Wells Pros pective Res

• urces

(1 ) Advantage

22

TSX (CNE), BVC (CNEC), OTCQX (CNNEF) Team with > 50-yr combined operating history in Colombia Calendar ‘1 4e 1 2,500 - 1 3,500 boepd Targeting 89 mmboe / 31 mmboe(4) Diverse platform 5 basins / 8 fields 2P reserves + DV 41 mmboe(5) Prospective resources ~21 0 mmboe(6) World class partners ConocoPhillips, Exxon, Shell

Investment summary

(1 ) Excludes anti-dilutive securities based on current market price CDN $7.22/share 1 01 .9 mm fully diluted securities: 90.2 mm common shares + 3.7 mm warrants + 8.0 mm options (2) Converted using CDN USD exchange rate (0.91 92) as of 5/1 5/1 4 (3) As of March 31 , 201 4

28% 32% 1 8% 22% In mm Shares outstanding 90.2 Dilutive securities 2.7 92.9 USD in mm Market capitalization $61 6.4 Net debt 1 06.7 Enterprise value $723.1 Diversified ownership

(1 ) (2) (4) Management’s estimate for net unrisked/risked recoverable prospective resources (5) Reserve reports effective Jun ‘1 3 and Dec ‘1 4 (6) Management’s estimate of net risked recoverable prospective resources (3)