INTRODUCTIONINTRODUCTION
~2.5 years ago, raised CDN $3mm to form a private Canada‐based oil & gas company focused on Colombia
Dual‐listed on the TSX Venture Exchange and the Colombia Stock Exchange under ticker symbol CNE and CNEC, respectively
Raised CDN $140mm during trailing 14 months
Today, Canacol has a $670mm market capitalization with $~ CDN $65mm in cash
Trailing 14 Months:Startup: Today:
Raised >CDN $140mmCDN $3mm CDN $670mm market capitalization
$1.20
$1.40
$1.60
$0 40
$0.60
$0.80
$1.00
$‐
$0.20
$0.40 Based on transaction closing date:
Convertible debentureEquity
The Power of 3The Power of 3
- Part Resource Capture Strategy- Part Resource Capture StrategyCountriesCountries Part Resource Capture StrategyPart Resource Capture StrategyCountriesCountriesColombia
Guyana
Development
Appraisal & Development
Exploration UpsideBrazil
Million Net Acres of High Impact ExplorationMillion Net Acres of High Impact ExplorationExposure to >12 billion barrels of net unrisked conventional oil in place
IntroductionProven Portfolio BuildersIntroductionProven Portfolio Builders
3.1mm3 000
3,500
19 Blocks19 Blocks2,000
2,500
3,000
B il 19 Blocks(7 producing / 12 exploration)
3.1mm net acres
19 Blocks(7 producing / 12 exploration)
3.1mm net acres500
1,000
1,500 1.6mm acres of heavy oil
BrazilGuyanaColombia
Net acres in 000s
‐
'07 '08 '09 '10
>1 9 billion barrels>1 9 billion barrelsGuyana
Brazil 4
>1.9 billion barrelsRisked NAVCDN $2.4b
>1.9 billion barrelsRisked NAVCDN $2.4b
957
$5.50/share$5.50/shareNet 2P + prospective unrisked resourcesPre‐tax NAV
Colombia1,020
bbls in mm
2010Production & Total Wells2010Production & Total Wells
6 000
7,000 7,000e7,000e
2009a vs. 2010e+164% organic growth
2009a vs. 2010e+164% organic growth
4 000
5,000
6,000
4 200in net productionin net production
2 000
3,000
4,000 4,200
2,650
Net BOPD2,000
'09A Exit Current '10 Exit
‘10‘10
7 wells left7 wells left
1014 Wells
1014 Wells
77
Appraisal & Appraisal & DevelopmentDevelopment
1212 7 wells leftRancho Hermoso 3
Capella 3
7 wells leftRancho Hermoso 3
Capella 3
7 Wells Left
7 Wells Left
1212
Appraisal & Appraisal & DevelopmentDevelopment
Guyana 1Guyana 1ExplorationExploration
22
66
ExplorationExploration11
2010US$51mm in Capex2010US$51mm in Capex
By Country
Guyana$9mm / 18%
Colombia$42mm / 82%
Fully fundedFully funded
Excludes any future discoveries
By Strategy
Development & Appraisal$32mm / 63%
Exploration Upside$19mm / 37%
Canacol EnergyCanacol EnergyPursuit to Enhance Shareholder Value
Canacol EnergyCanacol EnergyPursuit to Enhance Shareholder ValueShareholder ValueShareholder Value
Short/Medium Term Long Term
Investing in Rancho Hermoso field to increase net production and cash flow ‘10 exit rate
7,000 bopd, net
Guyana exploration upside
7,000 bopd, net
Prove up 616mmblsGuyana exploration upside p(net unrisked)
Heavy oil exploration upside Prove up 900mmbls(net unrisked)
Development of Capella oil field‘15 exit rate
100,000 bopd, gross
Build exploration portfolioFuture of LA
canacol’scanacol’s revaluationrevaluationcanacol’scanacol’s revaluationrevaluationcanacolscanacols revaluation revaluation
higher in 50 dayshigher in 50 days
canacolscanacols revaluation revaluation
higher in 50 dayshigher in 50 days
Guyana Ri k dRi k dGuyana
K-2
RiskedNPV-10
$504mm
RiskedNPV-10
$504mm
128mmbls128mmbls128mmbls128mmbls
US $; risked after‐tax NPV‐10 to Canacol’s working interestUS $; risked after‐tax NPV‐10 to Canacol’s working interest
Colombia is HotColombia is Hot“And they are not making “And they are not making y gany more of it [land]”
y gany more of it [land]”
20032003
4% Licensed
Today
60% Licensed% ce sed %
Vintage map
Licensed% of total basin area
LicensedSource: ANH
60% Licensed includes officially licensed land and management’s discretion
PORTFOLIOPORTFOLIO
Llanos Llanos -- Light/Medium OilLight/Medium Oil Working InterestWorking Interest
1 Rancho Hermoso Production 100%
2 Entrerrios Production 60%
CaguanCaguan--Putumayo Putumayo -- Heavy OilHeavy Oil3 Ombu (Capella) Production / Appraisal 10%
4 Pacarana Exploration 100%
Rancho Hermoso>90% of ’10 exit rate production
5 Tamarin Exploration 100%
6 Cedrela Exploration 100%LlanosUpperMagdalena
Caguan-Upper Magdalena Upper Magdalena -- Light/Medium OilLight/Medium Oil
7 COR‐11 Exploration 100%
8 COR‐39 Exploration 100%Capella2.2 billion bbls
gPutumayo
ColombiaColombiaRancho Hermoso (“RH”)ColombiaColombiaRancho Hermoso (“RH”)
RH 3Highlights
RH‐3
RH‐3STGame Changer – significant boost to near term cash flowRH‐5In Dec09, RH‐5 well tested >8,000 BOPD from 2 new oil bearingreservoirs (Los Cuervos and Guadalupe)
Top Mirador Depth (ft SS)
RH‐4
RH‐1
RH‐6In Jul10, RH‐6 well encountered a total of 115 feet of net oil pay in 5different reservoirs
Tested at >12 800 BOPD from three reser oirs RH‐4
RH‐7
Tested at >12,800 BOPD from three reservoirs
RH‐7Testing the well today
RH‐6RH‐2P
RH‐10
RH‐5
RH
3 wells left for 2010 3 wells left for 2010
‘10 wells
‘09 wells RH‐9
RH‐8
RH
(RH-8, 9, 10)
2nd rig to arrive in November
(RH-8, 9, 10)
2nd rig to arrive in November
Rancho Rancho HermosoHermosoBy ZoneRancho Rancho HermosoHermosoBy Zone
Barco-GuadalupeBarco-Guadalupe UbaqueUbaqueMiradorMirador
RH-4RH-11
August 201035 feet of net payTested at 6,205 gross bopd35◦ API
RH-7+
RH-3STRH-3ST
RH 1RH 1
RH-4Future re‐completion targetRH‐6 Ubaque
RH-6
December 201024 feet of net payTested at 4,434 gross bopd36◦ API
RH-6
RH-12
RH-1RH-1
RH 2
RH-5
RH-13
RH-2RH-2
Future re‐completion targetsMirador/Carbonera
Future re‐completion targetsRH‐6, 7 BarcoRH‐5 Guadalupe
RH 8
Existing wellFuture well
RH 14
Existing wellFuture well
RH-9
Existing well
RH-10RH-10
RH-8Future well
RH-14 Future wellFuture well
341 682 1,023
Meters
Rancho Rancho HermosoHermosoSummary & Untested UpsideRancho Rancho HermosoHermosoSummary & Untested Upside
Initial production zone
RH 7 B
Initial production zone
RH 11 UbaqueRH‐7 BarcoRH‐8 GuadalupeRH‐9 UbaqueRH‐10 Mirador
RH‐11 UbaqueRH‐12 UbaqueRH‐13 UbaqueRH‐14 Ubaque
Proven producing oil zones
C‐7
Los Cuervos
Mirador Mirador
C 7
and beyond…
Gacheta
BarcoGuadalupe Guadalupe
LC‐Barco
Ubaque
Commingling of Barco & Guadalupe
When gross oil ≤ 1,000 bopd, Ubaque
Untested upside
g , p ,plan to re‐complete them as Ubaque wells with IPR of 3,000 bopd
Rancho Rancho HermosoHermosoFacilities UpgradesRancho Rancho HermosoHermosoFacilities Upgrades
Road to RH‐5
Pools for production water treatment
All upgrades complete byAll upgrades complete by
Pools for production
complete by March 2011complete by March 2011
New process vessels
pwater treatment
2
Man
ifold
2 25,000 barrel storage tanks New
process vessels
25,000 barrel storage tanks
Existing storage tanks
New truck parking
Enter
Areas of the Caguan‐Putumayo Basin were formerly a demilitarized zone of Colombia
With the cleanup of Colombia by Uribe & administration, opportunities were created and the basin was no longer handicapped
Canacol’s quest began with the successful farm‐in to the Ombu block (now Capella oil field)
Tremendous undrilled opportunities awaitCaguan‐ Tremendous undrilled opportunities await…PutumayoBasin
Contract Summary
Ombu (Capella Field)Contract Summary
Ombu (Capella Field)
Contract type E&PHeavy oil (25% discount)Heavy oil (25% discount)
Royalty 8 – 23%
Working interest 10%2.2 billion
barrels2.2 billion
barrels Working interest 10%
Reservoir Engineer DeGolyer & MacNaughton
Operator Sinochem Group
barrelsbarrels
p p
Gross acres 74,105Caguan‐PutumayoBasin
ColombiaColombiaCapellaColombiaColombiaCapella
Capella
Net After Royalty Reserves and NPV-10 Summary and Comparison
Proven + Probable
2 1
Possible
1 4R ( bl )
2009Total
3 5
Proven + Probable
4 2
Possible
5 7
2010Total
9 9
Proven + Probable
100
Possible
297
% ChangeTotal
1792.1$20
1.4$5
Reserves (mmbls)NPV‐10 ($mm)
3.5$25
Netherland Sewell Reserve Report as of 6/30/09DeGolyer & MacNaughton Reserve Report as of 6/30/10
4.2$65
5.7$118
9.9$183
100227
2972,402
179644
Assumes only primary or “cold” production and excludes additional reserve recovery related to secondary
2010 ContingentLow
4.6$26
Reserves (mmbls)NPV‐10 ($mm)
gBest
7.2$58
High
10.7$89
DeGolyer & MacNaughton Report as of 6/30/10
ColombiaColombiaCapellaColombiaColombiaCapella
Highlightsg gDrilled 9 wells into Capella discovery to date (8 verticals / 1 horizontal)
Most recent FH‐10 well tested at 437 BOPD, significantly higher than the previous 7 vertical wells
Field is currently producing at 1,069 gross bopd / 107 net f 6 f 9 ll d l t t t
Romero‐1G‐9
Catalysts
from 6 of 9 wells under long term test
Steam Injector A‐1
G 9
3 wells left in 2010 (2 horizontals / 1 vertical)Currently completing G‐9Double gross es mated ul mate recovery: 222 → 444mmbls Capella
L‐11
Steam Injector C‐5
Preliminary forward development plan, ‘11 – ’15Construction of 250km pipelineDrill up to 300 wells (1)Peak gross production of 60,000 bopd cold flow by ’15 (vertical) or 100,000 bopd (horizontal and steam)G f $1 2 billi
FH‐10
(1) Assumes vertical well development
Gross capex of $1.2 billion
CapellaCapellaCyclic Steam StimulationCapellaCapellaCyclic Steam Stimulation
Injection phase(Days to weeks)
Shut‐in phase(Days to weeks)
SOAKHUFF Production phase(Weeks to months)
PUFF
Dissipating heat oil thins
Viscous (thick) oil
Viscous (thick) oil
Viscous (thick) oil
Depleted reservoir
Heat zone
Heat zone
Condensed Steam (hot water)
Injected Steam
Condensed steam (hot water)Heated Zone
Condensed steam and thinned oil
Area heated by convection from
hot water
Conservative estimate: Increase recovery
Capella Cyclic Steam Program
Conservative estimate: Increase recovery rates from 10% to 20%
C‐5 well: First pilot cyclic steam injection resulted in a 330% in gross production
Heavy OilHeavy OilEnhanced Oil Recovery AlternativesHeavy OilHeavy OilEnhanced Oil Recovery AlternativesHeavy OilHeavy OilScreening for Enhanced Oil Recovery Methods
Heavy OilHeavy OilScreening for Enhanced Oil Recovery MethodsRecovery MethodsRecovery Methods
Cyclic Steam Stimulation
Steam Assisted Gravity Toe‐to‐Heal Air
Vapor Extraction STAR Heavy‐to‐Light Stimulation
(CSS) Drainage (SAGD)
Injection(THAI) Process (VAPEX)
STAR Oil (HTL)
Cyclic Steam Stimulation
(CSS)
We continue to evaluate alternatives…
We continue to evaluate alternatives…
OmbuOmbu AreaAreaStratigraphyOmbuOmbu AreaAreaStratigraphy
CapellaCapellaMirador Reservoir IntervalCapellaCapellaMirador Reservoir Interval
F-7 F-10 B-2 E-8
Colombia Colombia —— Appraisal & DevelopmentAppraisal & DevelopmentCapella Field AnaloguesColombia Colombia —— Appraisal & DevelopmentAppraisal & DevelopmentCapella Field Analogues ColombiaColombia
VenezuelaVenezuelaFaja del OrinocoFaja del Orinoco
BrazilBrazil
CapellaCapella
RubialesRubiales
Field CAPELLA RUBIALES FAJA DEL ORINOCO
Formation Mirador Basales Oficina
Development Cold flow Cold flow Cold flowHorizontal wells Vertical & horizontal wells Horizontal wellsActive water drive Active water drive
Avg. EUR per well 0.7mmbls 1.0mmbls 1.5mmbls≤ 2.5mmbls
IP 550 bopd 1‐3,000 bopd 1‐2,000 bopdIP 550 bopd 1 3,000 bopd 1 2,000 bopd
Net pay ≤ 120 ft. 26‐50 ft. 328‐492 ft.
Well length 1,500 (horizontal) 1,200 ft. (horizontal) 3‐5,000 ft.
Spacing 80 acres 50‐80 acres 50‐80 acres
Depth 3,200 FT. TVD 2,400‐2,900 FT. TVD 1,476‐2,133 FT. TVD
Porosity 28% 26% 31%Porosity 28% 26% 31%
Permeability 1‐10,000mD 3‐5,000mD 5‐15,000mD
Oil Gravity 11°API 13°API 8‐10°API
New PipelineNew PipelineServicing Capella & Adjacent AcreageNew PipelineNew PipelineServicing Capella & Adjacent Acreage
Hupecol
Hupecol
Hupecol
Si
Capella Field
Tamarin E&P
Sino
Pacarana TEA
EcopetrolCedrela E&Ppipeline?pipeline?
TransAndinoPipeline
250km pipeline complete by year end 2013
250km pipeline complete by year end 2013
Contract Summaries
Heavy OilContract Summaries
Heavy Oil
Contract type/ Pacarana TEA (Jul09) Award date Tamarin E&P (Aug09)Award date Tamarin E&P (Aug09)
Cedrela E&P (May10)
Working interest 100%TamarinTamarin
Royalty 8 – 23%
Operator Canacol
PacaranaPacaranaCedrelaCedrela
Net acres 1.6mm
Colombia Heavy Oil Colombia Heavy Oil Extending the TrendColombia Heavy Oil Colombia Heavy Oil Extending the Trend
Tamarin E&P — 100%
1 billion barrels (OOIP) / 100 million barrels (EUR) (1)
Another Capella heavy oil prospectFault trend present at Capella extends to
VenezuelaVenezuela
OOIP, in billion barrelsRubiales 4.2OOIP, in billion barrelsRubiales 4.2
RubialesRubiales
Tamarin
Pacarana TEA — 100% QuifaQuifa
Rubiales 4.2Quifa 1.4Capella 2.2
Rubiales 4.2Quifa 1.4Capella 2.2
RubialesRubiales
CPE‐6CPE‐6
CapellaCapella
Llanos BasinLlanos Basin4 billion barrels (OOIP) / 400 million barrels (EUR) (1)
Identified 2 large structures similar to C ll
PacaranaPacaranaCedrelaCedrela
TamarinTamarin
Caguan‐Caguan‐
Capella
Cedrela E&P — 100%PutumayoBasinPutumayoBasin
4 billion barrels (OOIP) / 400 million barrels (EUR) (1)
Identified 2 large structures similar to UnriskedUnrisked RiskedRiskedIdentified 2 large structures similar to Capella
(1) Management estimate
UnriskedNPV-10$6.5b
UnriskedNPV-10$6.5b
RiskedNPV-10
$600mm
RiskedNPV-10
$600mm
ColombiaColombiaValidating Canacol’s Heavy Oil Acreage?ColombiaColombiaValidating Canacol’s Heavy Oil Acreage?
Capella Field
June 2010
Pacific Rubiales secured the largest acreage position in the Capella Field
Colombia’s largest discovery in 25 years
Putumayo Basin during the June 2010 Bid Round“Pacific Rubiales visualizes the continuation of the heavy oil belt to the southeast of the Rubiales and Quifa fields”
Work commitment comparison: Canacol vs. Pacific Rubiales
Tamarin E&P
Amount $/AcreCAG 5, CAG 6, PUT 9 $118mm $80
Cedrela, Pacarana, Tamarin $13mm $8
Pacarana TEACedrela E&P
Canacol shares Pacific Rubiales vision and was a first mover Last year, Canacol secured approximately 1.6mm acres adjacent to Rubiales new blocks
CAG 6
CAG 5
3Q 20115 well continuous
3Q 20115 well continuous5 well continuous drilling program
5 well continuous drilling program
PUT 9 Pacific Rubiales
Pacific Rubiales
Heavy OilHeavy OilCaguan BasinHeavy OilHeavy OilCaguan Basin
Capella Field
Capella Field
Cedrela
Tamarin
PacaranaSurface lineaments
2D seismic scheduleTamarin Nov10 ~30kmCedrela Dec10 ~250kmPacarana Jan/Feb11 ~300km
Mirador levelfaults
Structural highs identified on Aerogeophysics
CAG 5
CapellaCapella vs. vs. TamarinTamarinSeismic ComparisonCapellaCapella vs. vs. TamarinTamarinSeismic Comparison
Capella Field
Tamarin E&P
Capella Field Tamarin E&P
MiradorMiradorMi dMi d
Fractured ConglomerateFractured
Conglomerate
MiradorMirador
ConglomerateConglomerate
Upper Magdalena valleyUpper Magdalena valleyUpper Magdalena valleyUpper Magdalena valleyUpper Magdalena valleyUpper Magdalena valleyUpper Magdalena valleyUpper Magdalena valley
2010 Bid Round2010 Bid RoundCOR-11 & COR-392010 Bid Round2010 Bid RoundCOR-11 & COR-39
Upper magdalena valley
Strategy
COR-39
New exploration core area
Multiple play types COR 39Multiple play types
Available data – identifiable leads
Range of resource potential –5 to 50 mmbo EUR
COR-11Light to medium gravity crude oil potential
Established infrastructure
Bid at 100% and operatep
Farmout
COR-39COR-39 Area 38,487 hectares2011 90 km 2D seismic acquisition, $3.6mm2012 2 x A3 wells, $6mm/well
Caciqueb
, $ /UnriskedEUR 24 mmbo
Giradot
1.5 mmbo EUR
5.5 mmbo EUR
S.E. Conchitas6 b EURGladiator W
7 mmbo EUR6 mmbo EUR
Gladiator Deep
Abanico Field20 mmbo EUR
Gladiator Deep4 mmbo EUR
Guando FieldGuando Field120 mmbo EUR
COR-39COR-39
Girardot
Prospect
Abanico Field20 mmbo EUR
BLOCK LEAD NAME PLAY TYPE RESERVOIR Unrisked EUR (MMbbl) COS Estimated TD (ft MD)COR 39 Padrino West Subcrop Monserrate 5 48 0 41 3500COR 39 Padrino West Subcrop Monserrate 5.48 0.41 3500COR 39 Gladiador Deep Subcrop Caballos 3.84 0.24 6800COR 39 Gladiador West Subcrop Caballos 7.20 0.21 6200COR 39 Conchitas SE Subthrust Monseratte 5.93 0.23 3800COR 39 Cacique West Subcrop Monserrate 1.42 0.23 3500
COR-11COR-11 Area 71,595 hectares2011 155 km 2D seismic acquisition, $6.2mm2012 1 x A3 wells, $6mm/wellUnriskedEUR 84 mmbo
Archangel53 mmbo EUR
Archangel W31 mmbo EUR
NW SECOR-11COR-11
archangel
Prospect
BLOCK LEAD NAME PLAY TYPE RESERVOIR UnRisked Mean EUR (MMbbl) Estimated TD (ft MD)COR 11 Archangel Subthrust Guadalupe 52.77 6700COR 11 Archangel West Subthrust Guadalupe 31.69 6900
Contract Summary
TakutuContract Summary
Takutu Contract type Takutu PPLLight oil
Working interest 65%25% (Sagres Energy)10% (Groundstar)
Operator Groundstar Resources
Gross acres 1.85mm
C i 2 ll b M 2011Commitments 2 wells by May 2011
Key terms 50% state takeFull cost recovery from 75% of first productionTakutu 75% of first production
No royalties or taxes
Takutu
Guyana
TakutuGuyana
Takutu
Rewa High
Karanambo‐1K‐2Georgetown
Pirara River
?300km pipeline
Takutu
Karanambo-1 has de-risked K-2 (mmbls) High
281217
Mean
128133
Unrisked Recoverable
K‐2Pirara River
NetHigh
183141
Mean
8386Karanambo‐1 K‐2 estimate
Days to drill 45 50FTD (feet measured depth) 9,268 9,840Discovery date ’82 Mid Dec ‘10API (degree) 42 42
d (b d)K‐2 Coming Up (October ‘10 spud date)…
217450
948
133171
432
Pirara RiverRewa High
Gaffney, Cline & Associates Resource Report as of 12/31/09
141293
617
86111
280
Tested rate (bopd) 411 600‐1,200Theoretical productivity (bopd) >1,200Drill/test cost (US$) $32mm $9.5mmWTI annual avg. oil price (/bbl) $31.83 $75.00
If successful, K‐2 will be put on a long term production test to establish the deliverability and performance of the reservoir
K‐2 threshold = 25mmbls gross unrisked recoverable to determine pipeline feasibility (vs. 128mmbls mean target)
KK--22Path To Proving Up 128mmblsKK--22Path To Proving Up 128mmbls
Rig MobilizationUS i M
S i
US via Manaus
Services
Trucked to Boa Vista
Trinidad via Georgetown
Manaus
CampColombia via Manaus
GuyanaGuyanaK-2 Top Apoteri StructureGuyanaGuyanaK-2 Top Apoteri Structure Karanambo‐1K‐2
Rewa High
Pirara River
Top Fractured Basalt Reservoir
Proposed K-2 BHL
K-2 Pad K-1
p
UnriskedNPV-10
$781mm
UnriskedNPV-10
$781mm
RiskedNPV-10
$500mm
RiskedNPV-10
$500mm
K-2
128mmbls128mmbls
StructuralStructural
spill point
2 km
Guyana
K-2 Well SchematicGuyana
K-2 Well Schematic1 inch = 800
meters
13.375in conductor
Scale 1
9.625in casing surface
Easting (m)
h (m
)
1.97◦/30m No
Target 1 Rev BO
Target 2 Rev BO
BHL Rev bo
e Ve
rtical Dep
torthing (m
)
g v O
True
7in casing intermediate
K‐2 wellhead
7in casing intermediate
0.00◦/30m5in liner
Target 1 Rev BO
target 2 Rev BO
BHL Rev bo 9,840 FT MD9,840 FT MD
Vertical Section (m)
GuyanaGuyanaPirara RiverGuyanaGuyanaPirara River Karanambo‐1K‐2
Rewa High
Pirara RiverLine 79-11
Pirara RiverWell Trajectory
A i V l iApoteri Volcanics
NESW
UnriskedNPV-10
$540mm
UnriskedNPV-10
$540mm
RiskedNPV-10
$155mm
RiskedNPV-10
$155mm
Surface location givesflexibility of
$540mm$540mm $155mm$155mm
133mmblsflexibility of
bottomhole target
GuyanaGuyanaRewa B & CGuyanaGuyanaRewa B & C Karanambo‐1K‐2
Rewa High
Pirara River
Rewa B
Rewa C
Rewa B Drill May 2011
UnriskedNPV-10
$798mm
UnriskedNPV-10
$798mm
RiskedNPV-10
$100mm
RiskedNPV-10
$100mm
90-17
171mmbls
90-07
90-17
SUMMARYSUMMARY
140%
+134%
Performance
Canacol vs. Colombia E&P IndexPerformance
Canacol vs. Colombia E&P Index
120%+134%
80%
100%
60%
80%
40%
20%+25%
0%
‐20%
Jan‐10 Feb‐10 Mar‐10 Apr‐10 May‐10 Jun‐10 Jul‐10 Aug‐10 Sep‐10 Oct‐10
As of 10/15/2010 closeRepresents equal weighted Colombia E&P Index: ALE, EC, GTE, HUSA, PDP, PDQ, PMG, PRE, PTA, PTV, PXT, SRN
2010
Forward Calendar2010
Forward Calendar
Q3 Q4
Rancho Hermoso – Production & Reserves Growth_ Drill RH‐8 through RH‐10 (3) wells to achieve ‘10 exit rate production of 7,000 BOPD
ia
Capella – Production & Reserves Growth_ Drill 3 wells to prep for full field development plan to commence in 2011_Cyclic steam injection pilotCo
lom
bi
Steam Pilot
Heavy Oil – Preparation_All seismic complete by Q1:11_In 2011, drill 5 wells to begin proving up 900mmbls
Guya
na
K‐2 – Upside_ Drill in October, results in mid December_Begin proving up 128mmbls
G
10/29FY end 6/30/10 results
Reserve Reports
Canacol (BVC: CNEC)
Bolsa de Valores de Colombia Canacol (BVC: CNEC)
Bolsa de Valores de Colombia
Expansion of investor baseAccess to Colombia oil & gas sector
Colombia’s people participate in Canacol’s growth
Confidence in ColombiaThe government has done an excellent job ensuring thestability of regulation in the country
With greater security, Colombia has become moreattractive for foreign investment
Next catalyst: Phase I of Colombia, Chile, and Peru stockmarket integration begins in November
Massification of capital markets$ in mm Daily Avg. (1)Colombia only $19.23 countries integrated $57.5 → up to est. $300mm
Citi is managing our upcoming non‐deal roadshowsin Chile & Peru
(1) – BVC market integration presentationavailable at its website
Canacol EnergyCanacol Energy
In mmSh di 441
Capital Structure CorporateHeadquarters Calgary, Canada
Shares outstanding 441Warrants 8Options 31
480
Fiscal year end 6/30
Employees ~80
CDN in mmMarket capitalization $670Cash (65)Debt (1) 40Enterprise value $645
Auditors Deloitte‐Canada
Analyst coverageSouth America Rest of WorldAlianza Valores CanaccordGenuityEnterprise value $645 Alianza Valores CanaccordGenuityAsesores en Valores Cormark Securities Bolsa Y Renta FirstEnergy CapCelfinCapital Jennings CapitalCorreval Mackie Research I t b l Stif l Ni l
Share capital as of 10/15/10(1) Convertible debenture
O Interbolsa Stifel NicolausSerfinco TD SecuritiesValores Bancolombia
Ownership (2)
Other I tit ti
Management &Board 10%
Institutions45%Retail
25%
C l biColombia Pension Funds 20%
(2) Fully diluted
Canacol’s Current Portfolio
Production & Cash FlowCanacol’s Current Portfolio
Production & Cash Flow
SummarySummaryBalanced approach Development & Appraisal
Exploration30 000
35,000
40,000 ~35,000 Net Risked BOPD In 2015~35,000 Net Risked BOPD In 2015
Exploration
‘10 exit rate production 7,000 BOPD
Execution focusedGuyana
Colombia
Guyana
Colombia 20,000
25,000
30,000
Fully funded
5,000
10,000
15,000
Avg. Net BOPD
‐
2010 2011 2012 2013 2014 2015
$375
$475
$575 >$475mm in Cumulative Net Risked Cash Flow In 2015
>$475mm in Cumulative Net Risked Cash Flow In 2015
Colombia
Guyana
Combined (Colombia + Guyana)
Colombia
Guyana
Combined (Colombia + Guyana)$175
$275
$375
$(25)
$75
USD in mm
$(125)
2010 2011 2012 2013 2014 2015
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