equivalency at the wellhead. 2 - Discovery Labrador The corporate - PowerPoint PPT Presentation

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. 2

- Discovery Labrador The corporate and Leono in LLA 23 production average has - Esperanza gas Block increase 42% over the last - Libertador & Atacapi 4 quarters: (1) field in Ecuador The guidance production for calendar 2014 has been revised upwards, from 11,500 – 12,500 boepd to 12,500 – 13,500 (1) Value calculated with average net production before royalties from 3Q – F2013 hasta el 3Q- F2014

Quarterly Average Production Before royalties tarif tarif others Corporate Netback : $43,57 Corporate Corporate Netback o: $38,44 Netback : $39,33 10,893 boepd Corporate Corporate Netback : $32,14 10,095 boepd Netback : $35,40 9,132 boepd 8,269 boepd 7,659 boepd Quarterly production, included in Financial Statements and MD&A, for each of the periods.

Increased production is reflected in : Increase in incomes: (1)  ↑61% 3Q – F2014 US $55,7 mm vs 3Q – F2013 US$34,6 mm Scaling up of funds from operations (2) ↑118%  3Q – F2014 US $32,3 mm vs 3Q – F2013 US$14,8 mm Production with higher netbakcs : (3)  3Q – F2014 $43,57/boe vs 3Q – F2013 $35,41/boe ↑23% (1) Adjusted Income from oil and gas for each period – Includes CPI Ecuador. Figures in millions of U.S. dollars (2) Operating average netback for each period.

Ingresos Totales & Opex + Transporte TOTAL INCOMES & OPEX + TRANSPORTATION Series1 Opex + transportation Opex + Transporte Total incomes $ 61,6 $ 51,6 $ 46,0 $ 41,8 $ 36,7 $ 17,6 $ 18,4 $ 17,8 $ 14,0 $ 14,8 a Mar 31 2013 a Jun 30 2013 a Sept 30 2013 a Dic 31 2013 a Mar 31 2014 Figures in millions of U.S. dollars ($) Quarterly values ​ . The date represents the end of each quarter Values ​ obtained from the Financial Statements and MD&A for each of the periods.

Fondos Provenientes de Operaciones FUNDS FROM OPERATIONS $ 32,3 $ 24,3 $ 19,1 $ 15,6 $ 14,8 a Mar 31 2013 a Jun 30 2013 a Sept 30 2013 a Dic 31 2013 a Mar 31 2014 Figures in millions of U.S. dollars($) Quarterly values ​ . The date represents the end of each quarter Values ​ obtained from the Financial Statements and Management Report and Analysis for each of the periods.

Canacol reported net income of $ 19.4 MM for the quarter ended March 31, 2014, compared to a net loss of $ 3.4 million in the comparable period. Quarter March 31 2014 2013 Utility (loss) net 19.438 (3.425) Adjusted: Interests 12.885 478 Taxes 2.416 2.607 Depreciation 9.015 11.446 Stock-based compensation 2.454 1.435 Loss gain on derivatives and financial instruments (2.657) (320) Pre-license costs/E&E write - down 3.405 95 Gain (no cash)on business acquisition - 1.240 Change in the provision (10.545) - EBITDA 35.097 14.886 Figures in thousands of dollars ($) Values ​ extracted from the audited financial statements at June 30, 2013.

CANACOL WITH THEIR CURRENT SITUATION:  Solid financial structure WELL POSITIONED FOR:  Reserves increase and "dv"  Maintain strong production levels  Diversified production  Generate cash flow with better  Broad Portfolio of Exploration netbacks  Cash flow:  Grow their reserves  $ 35.7 $ 52.1 MM + MM (RC)  Recent financing for an additional $ 80 million (Apr 24)

Diversified base production Portfolio 5 basins / 8 fields Enterprise value US $ 752 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 Resource potential ~210 MMboe (2) World-class partners ConocoPhillips, ExxonMobil, Shell (1) Pre-royalty 2P reserves + deemed volumes and pre-tax NPV-10 as of Jun ‘13 and Dec ‘13 (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 resources

56 gross wells (39 remaining) + 13 workovers Diversified across 5 basins in Colombia and Ecuador ~$44 million capex in calendar 1Q ‘14 (1) → 43 gross development wells (28 remaining) Calendar ‘14e 12,500-13,500 boepd (2) Y/Y growth 40-50% ~65% oil / ~25% gas Calendar ’14 exit ~17,000 boepd (2) → 13 gross exploration wells (11 remaining) ~85% of exploration capex committed around existing fields ‘14e: Targeting 89 MMboe / 31 MMboe (3) (1) Excludes business acquisition (2) Pre-royalty average net production (2) Management’s estimate for net unrisked / risked recoverable resources

Nearly triple production from existing 2P reserves + DV 41 MMboe / US $ 846 million 2P reserves over the next 3 years $2.500,0 50.000 $81 Pre-royalty avg net Exploration upside production (boepd) ~210 MMboe / US $2.3 billion $2.000,0 $708 40.000 Exploration upside $1.500,0 30.000 $1.000,0 $190 20.000 $1.546 $265 $500,0 10.000 $752 $581 0 $- Proven Probable Possible EV Upside '13a '14e '15e '16e '17e '18e '19e '20e Calendar year average production positioned on x-axis labels Pre-royalty 2P reserves + deemed volumes and pre-tax NPV-10 as of Jun ’13 and Dec ‘13 (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 resources

Guidance 8 fields ~13,000 boepd for calendar year ‘14e ~$62 / barrel netbacks at LLA 23 $45 12.000 $40 $35 10.000 $30 8.000 $25 6.000 $20 $15 4.000 $10 2.000 $5 - $- Producing Pre-royalty avg Rancho Hermoso tariff oil Corp avg net production Gas netback (boepd) (/boe)

3D Leono 3 Pantro 4 1 ‘08 → Tigro-1 Rancho Hermoso Field 5 MMbls (1) 13 for 13 LLA 23 ~15,000 net bopd at peak 50 MMbls pursuit (1) 2 ‘12 → Labrador Field 3D Operated 80% WI 4 for 4 Spud Lab-4 on April 30 Strong $62/barrel netback Accelerate production 3 ‘ 13 → and reserves growth Leono Field Labrador 2 Maltes-1 2 for 2 2 MMbls (1) Up to 9 wells left in ‘14 Set to spud Leono-3 Up to 6 development Pointer-1 2 MMbls (1) 3 exploration 1 4 ‘ 14 → (Tigro-1, Pointer-1, Rancho Maltes-1) Pantro Field Hermoso 1 for 1 Fault Oil fields Leads (1) Management’s estimate of net unrisked prospective resources

20 straight successful wells at 4 fields LLA 23 Rancho Field Hermoso Labrador Leono Pantro Discovery Dec ‘09 Dec ‘12 Dec ‘13 May ‘14 Wells 13 4 2 1 Reservoirs 6 3 4 5 C7 Mirador Tested 1,038 bopd Barco Guadalupe Gacheta Tested 2,930 bopd Ubaque Source ANH: Digitally reproduced stratigraphic column for the Eastern Llanos basin (Casanare) Shales Sandstones 16

LLA 23 80% WI 4-for-4 at 3 confirmed Labrador reservoirs Tests ≤1,800 bopd (2 displayed) Agueda pad Lab-4 spud A Lab-2 G,U Lab-3 Stacked pay C7,G,U A mitigates risk Lab-5 C7,G L-2 A-1ST L-3 C7,G,U L-5 Lab-4 Pointer-1 A-1ST coming soon L-4 Pointer Pointer-1 pad $62/bbl netback P 2 MMbls (1) P (1) Management’s estimate 2km P-1

Leono → Pantro → Tigro → 80% WI OWC @ OWC @ 9,446 ft 10,346 ft Leono-3 L-3 Lanceros pad L Leono-2 L-2 L 5 confirmed Leono-1 reservoirs L-1 (2 displayed) 3 solid results Test rate Leono-1 (B) 1,490 net bopd Leono-2 (B) 2,406 Pantro-1 Pantro-1 (G) 2,344 P-1 Pantro-1 (M) 830 P-2 Pantro-2 ≤ 6 month P-3 Pantro-3 payback/well Tigro T T pad T-2c Tigro-2c Leono Pantro Tigro-1 Tigro-1 LLA 23 5 MMbls (1) Tigro-3c T-3c 2km (1) Management’s estimate