Growth From A Focused Portfolio Forward Looking Statements This - PowerPoint PPT Presentation

June 2016 Growth From A Focused Portfolio

Forward Looking Statements 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. 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. Acres Acres represents gross acres Production and Reserves Production represents net before royalty Reserves represent 2P reserves and before tax NPV-10 as of December 31, 2015 Exploration Resource Potential Exploration resource potential represent management�s estimate of net unrisked recoverable resource potential, unless indicated otherwise 2 2 USD All dollar amounts are shown in US dollars, unless indicated otherwise

Focused E&P Portfolio • Dual-listed TSX and BVC Supply-scarce Caribbean natural gas market • Enterprise value US $723 MM • Exploration success ���8 → ) 65% • Insider ownership ~25% • ���e guidance 16 – 17,000 boepd Natural Gas $58 MM capex $135 MM ebitdax • YE 2015 2P reserves 79 MMboe • Pre-tax NPV-10 US $1.3 B Light Oil • Value/share CDN $7.96 S. Pacific Ocean Shale Oil • Y/Y reserves replacement 1,103% Colombia • 2P F&D cost $2.85/boe • Long reserves life ~10 yrs. • Substantial exploration 1,045 MMboe Light Oil resource potential (1) Ecuador • 13x 2P reserves Canacol • Blocks / gross acres 23 / 3.4 MM 70 140 280 420 560 Km (1) M anagement�s estimate of net unrisked 3 recoverable resource potential

Focused E&P Portfolio Large gas reserves underpin production and cash flow for a decade • Dry natural gas – [stable cash flow] +52% CAGR in 2P reserves (1) • ��� and ��� 2P reserves in MMboe 2 acquisitions 79 oil gas • ��� → present 3 large discoveries • 2P reserves 372 BCF (65 MMboe) 14 • Exploration resource >3 TCF potential (2) • Light oil optionality – [flexible approach] 43 • Track record 65% exploration 35 82% 65 gas 96% development 23 18 • 2P reserves 14 MMbls 18 • LLA 23 exploration 33 MMbls resource potential (2) 11 20 8 7 17 • Large shale oil opportunity – [call option] '09 '11 '13 '15 • Exploration resource (1) Includes 3.5 MMboe of production since inception 458 MMbls (2) M anagement�s estimate of net unrisked recoverable resource potential potential (3) (3) DeGolyer & MacNaugton unrisked mean prospective oil resources, effective June ��4 4

Strong Sales Growth +45% projected CAGR in corporate sales ��� guidance and sales mix Expressed in boepd 40,000+ Natural gas 80% 88% insensitive Tariff oil to oil volatility ~20,000 8% 16,500 Light oil 12% 10,933 1Q '16 '16e avg. Current Mid '18 - after pipeline • Produced >20 MMboe since inception • Recent, large natural gas discoveries driving • Operator of all production and facilities in Colombia shift from oil to natural gas • Natural gas 100% avg. WI • Light oil 91% avg. WI 5

The Road Ahead… Pursuit of dry natural gas that features stable pricing Benchmark gas prices declined 64% vs. Canacol 18% gain Fixed-price gas contracts erase oil volatility Quarterly average MMbtu Realized gas price and gas netback per boe Realized price Gas netback $12 $32 $31 +18% >80% $27 $27 operating $26 $9 margins $135 MM +40% EBITDAX LT gas contracts with price $19 escalation $6 +18% Canacol -57% US $3 Canada -62% -74% $0 Mar Jun Sep Dec Mar Jun Sep Dec Mar 2016e Mar Mar 2016e '14 '14 '14 '14 '15 '15 '15 '15 '16 '14 '16 6

Canacol-Gas Ranks #1 Mid-cycle break even costs - $50/bbl WTI, $2.75/Mcf $/bbl $65 Mckenzie/Williams Three Forks oil $63 Williams County Bakken oil • Captured ~ 40% of all E&P capital $59 Permian Delaware Basin Bone Spring oil invested from ��9 to present $58 Permian Midland Basin Wolfcamp (shallow) oil $56 Tuscaloosa Marine Shale oil $55 McKenzie County Bakken oil • N.A. shale oil and gas now $54 SCOOP Woodford oil $52 Eagle Ford Black oil largely uneconomic $50 STACK Maramec / Woodford Oil $47 Ft. Berthold Bakken / Three Forks oil $44 Permian Delaware Basin Wolfcamp (tier 1) oil • Enter Canacol $43 Permian Midland Basin Wolfcamp (deep) oil $42  Breakeven < $5.00/boe Ferguson Bakken/Exshaw oil $41 Sanish and Parshall Bakken oil $39 E. Pembina Cardium oil $38 Gordondale Motney oil $36 Tower Motney oil $36 SE SK Viewfield Bakken oil $32 Canacol-gas Karnes Trough Eagle Ford condensate < $5.00/boe Source: Scotia Capital Playbook, October 2015 Barclays North American E&P research 7

A Leader In E&P Capital Efficiency Participate in our capex-light growth ��� → ��� cumulative capex $MM Canacol-gas Peer avg. Capex, x-acquisitions $97 $807 ($ MM) $807 Production increase 10M 10M (boe/d) Wells drilled 8 73 �Q ��� netback $27 $12 ($/boe) ��� outlook �$/ boe) Stable $26 Volatile $9 - $28 (1) • Peers spent 8x more money to generate the same production increase • Peers drilled 9x more wells • Canacol is a leader in capital efficiency $97 • One well / yr. to maintain current gas production • $4.6 MM D&A cost per well • ���e: spend $�� MM to generate $��� MM EB)TDAX Canacol-gas Peer Avg. (1) Range based on Brent oil price sensitivity: $35/Bbl to $55/Bbl 8

Natural Gas Demand Greater Than Supply 1 2 Chuchupa • Supply decreasing 20% / yr. from coastal fields Ballena • Three mature fields in blow-down Caribbean Sea [-100 MMcf/d per year decline] (1) Barranquilla 1 2 3 Chuchupa Ballena La Creciente 2018 2016 • Demand increasing 3% / yr. for the past 10-yrs. pipeline pipeline Cartagena and projected to grow at 3-4% through 2026 +100 MMcf/d • +65 MMcf/d from new 2016 pipeline 3 La Creciente 4 fields • Flows north / south 65 / 25 MMcf/d south 100% WI • Total production 65 MMcf/d 90 MMcf/d ~785k acres • Gas EBITDAX/yr. $135 MM Clarinete Oboe Jobo facility • +100 MMcf/d from planned 2018 pipeline Nelson Palmer • Total production 25 MMcf/d 190 MMcf/d • Gas EBITDAX/yr. $310 MM Cerro Matoso mine • By 2020e, Canacol will supply ~42% of the coast 15 30 60 90 120 Canacol Km Gas pipeline 9 (1) Average annual decline for each of the trailing 2 years

Epic Gas Deficit On Colombia�s Coast Plan to boost gas production to solve supply shortfall Solving Colombia�s gas supply deficit • The Caribbean Coast had a balanced gas Gas supply-demand forecast in MMcf/d supply-demand profile for decades 600 • 3 mature fields in blow-down 582 • 100 MMcf/d per year decline (1) Supply shortfall 127 MMcf/d 25 477 455 190 • Canacol began planning in 2012 Supply from Canacol 400 +165 MMcf/d • ��� and ��� 2 acquisitions • ��� → present 3 large discoveries • 2P reserves 372 BCF 265 200 Supply from three mature fields • Plan to 8x Canacol-gas -212 MMcf/d • Solve ��% of the Caribbean�s lost supply - • Goal to backfill 165 MMcf/d of the 212 MMcf/d lost '15 '16e '17e '18e '19e '20e • 127 MMcf/d of additional opportunity Source: Industry and Government Studies (1) Average annual decline for each of the trailing 2 years 10

Canacol�s Cluster Of Gas Discoveries Robust reserves + the quest for exploration upside 4 blocks: 3 of 4 fields booked La Creciente • 2P reserves 372 BCF • ~50 prospects / leads • >3 TCF exploration • Oboe to be booked at the end of June 3D seismic VIM 19 100% >3 TCF (1) 4 fields 3 new discoveries 100% WI Oboe-1 ~785k acres VIM 5 Subcrop 100% edge Upper zone GWC Clarinete-2ST -6,410 ft subsea 3D seismic 3km Clarinete-1 4 Clarinete 3 Oboe Date Test Pay Porosity VIM 21 (MMcf/d) (Ft.) (%) 100% Jobo Clarinete-1 Dec ��� 44 149 26% facility 10km Esperanza Clarinete-2ST Sep ��� 30 127 23% Cienaga de Oro Palmer 2 100% time structure map Oboe-1 Mar ��� 66 158 23% 1 Nelson Average 47 145 24% Prospects / leads Fields & discoveries Canacol�s fields & discoveries 11 1 Dec ��� acquisition 2 3 Dec ��4 discovery 4 Mar ��6 discovery Aug ��4 discovery (1) M anagement�s estimate of net unrisked recoverable resource potential