May 2019 Forward Looking Statements This presentation may include - PowerPoint PPT Presentation

May 2019

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. Realized contractual sales Represents net before royalty USD All dollar amounts are shown in US dollars, unless indicated otherwise 2

Why Natural Gas In Colombia? Colombia • South America’s oldest/most stable democracy Conventional • 3 rd largest South American economy gas • Regulatory stability (1) Unconventional oil Natural gas in Colombia (2) • Country´s gas demand ~ 1 BCF • Caribbean Coast Bogota Colombia ~ 40% • Demand growing 2-3% / yr. • Limited competition • Gas supply x-Canacol declining ~12% / yr. Canacol´s gas production in Colombia • Current ~122 MMcf/d • Jun ‘19e ~215 MMcf/d 70km Canacol’s E&P blocks • 1Q ‘19 wellhead price $4.97/ Mcf (1) Accenture “Strategy Energy”, March 2016: Accenture Consulting ranks Colombia’s oil & gas regulatory reform In the top 3 3

Colombia’s Natural Gas Supply Deficit Guajira Chevron fields ~225 MMcf/d Strong gas demand on Colombia’s Caribbean Coast Barranquilla • Demand ~450 MMcf/d Caribbean Sea increasing 3% / yr. (2) Cartagena Terminal decline in Caribbean gas supply Hocol • For 30+ yrs., Chevron provided ~50% of gas supply 30 MMcf/d Frontera • Times have changed since Canacol’s entry into the 25 MMcf/d Colombian gas market in 2012 Canacol Canacol is replacing Chevron as the largest 179 MMcf/d (1) supplier of gas to the Caribbean coast • The only active explorer over the trailing 6-yrs. Cerro Matos0 10 km (1) 2019e corporate guidance Canacol gas blocks (2) Source: UPME Colombia 4 Promigas pipeline expansion Existing gas pipelines

Discovered 481 BCF Since Inception History of Canacol’s 2P reserves +232% 2P reserves replacement ratio • 2P reserves increased 11% to 559 BCF In BCF 2P reserves in BCF +11% • Delivering BT NPV-10 value of $1.5 B (1) , net of CNE debt 559 505 Industry-leading F&D cost 2P F&D Recycle Ratio • 1-yr. $0.32/Mcf 11.8x (2) 409 • 3-yr. $0.57/Mcf 7.1x (3) 365 • ~13-yr reserve life, ranked #1 amongst Colombia peers A history of discovery • Success rate 83% • 2P reserves adds / CAGR 481 BCF / 55% 2.6 TCF upside (4) • Prospects & leads 140 114 • Net acres 78 1.1 MM '13 '14 '15 '16 '17 '18 (1) Before tax NPV-10 for Canacol’s 2P gas reserves as of 12/31/18 (2) The 1-yr. recycle ratio is based on a natural gas netback of $3.80/Mcf for the 1 year ended 12/31/18 (3) The 3-yr. recycle ratio is based on a natural gas netback of $4.03/Mcf for the 3 years ended 12/31/18 5 (4) Mean unrisked prospective gas resource

Canacol’s Consistent Growth 40,300 Natural gas production growth profile In MMcf/d 179.0 Solid gas portfolio 6 consecutive quarters of gas sales growth • E&P contracts / net acres 5 / 1.1 MM • Take/pay fixed wellhead gas pricing $4.97/Mcf (1) • Operating netback $4.03/Mcf (2) • Robust operating margins >81% (2) 122.0 119.3 115.3 111.9 106.3 85.2 Continuous production and reserves growth 76.0 • Est. ‘18 → ‘19e production growth +58% • 2P reserves adds over the trailing 6-yrs. 481 BCF • Outstanding gas exploration success 83% 3Q '17 4Q '17 1Q '18 2Q '18 3Q '18 4Q '18 1Q '19 2019 guidance (1) As of 1Q 2019. Represents realized gas contracts, net of transportation costs (2) As of 1Q 2019 6

Infrastructure To Support Superior Gas Sales Growth Average annualized natural gas sales In MMcf/d 315 Barranquilla Caribbean Sea Jun ‘19e 215 179 Cartagena 113 81 70 16 '12 '16 '17 '18 '19e '22e Bremen ‘12 Acquired Shona Energy Sincelejo • 80 km pipeline → Cerromatoso nickel mine ‘16 Promigas-funded 190 km pipeline ‘17 Private-funded 82km line Jobo → Bremen Jobo Station Jun ‘19e Promigas-funded expansion • 70 km Jobo → Sincelejo / 100 km Cartagena → Barranquilla Cerro Matos0 10 km ’22e Potential 100 MMcf/d pipeline to Barranquilla or Canacol gas blocks 7 Medellin Pipeline expansion Existing gas pipelines To Medellin

2019 Capital Plan $119 MM 2019 focus $ in MM • Lifted gas treatment capacity from 200 → 3D seismic 330 MMcf/d $16 6 exploration & • Increase gas sales from ~130 → ~215 MMcf/d appraisal + 2 development Other $23 wells $50 (1) • Drill 8 (6 remaining) exploration, appraisal and development wells Facilities expansion & • Execute definitive agreement to increase equipment gas sales via new Medellin pipeline $30 • Increase gas sales by +100 MMcf/d in 2022 (1) Pre-operative seismic, workover, trailing, social, and other costs 8

Mamay Expanding Canacol’s Gas Resource Runway La Creciente Guepaje Sincelejo Recent 30% increase in prospective resources (Source: Gaffney Cline & Associates resource report, effective 12.31.17) Bremen VIM 19 Canacol-gas '12 - '13 '14 - '16 '17 - '18 CAGR 100% WI Blocks 2 4 5 14% Promigas 2019 2016 Net acres (in 000s) 85 725 1,100 44% Gross resources (in TCF)(1) 0.1 2.0 2.6 59% Chimu El Deseo Prospects & leads 7 44 115 49% SSJN 7 Sabanas CNE operator + 50% WI 2.6 TCF of resource upside (1) 2017 VIM 5 • Blocks/net acres 5 / 1.1 MM 100% WI • Prospects & leads 140 Forward plan VIM 21 100% WI • ‘19 8 well program (6 remaining) Oboe Pandereta • ‘19 – ‘21 Chirimia Acquire 3D seismic (VIM5, VIM19, Clarinete SSJN7) Canahũate Jobo Canacol gas field Nispero • ‘20+ Gas field Station Exploratory drilling on new 3D Prospect Trombon Breva seismic (VIM5, VIM19, SSJN7) Lead 3D seismic Cañandonga Existing flow line Palmer Future flow line Nelson Esperanza Facilities 9 100% WI (1) Represents gross mean unrisked resources from a resource report Toronja 5 10 15 km prepared by Boury Global Energy Consultants, effective 7/31/18

Nelson-13 Development Well Flowtests 33 MMcf/d VIM 19 SSJN 7 Dec ‘18: encountered the thickest gas reservoirs in corporate history VIM 5 VIM 21 Nelson-13 Esperanza Nelson Field 266 ft TVD of net gas pay from 2 zones Geoseismic section along Nelson-13 wellbore trajectory Top CDO depth structure 500 M A B Nelson-13 Nelson-13 Penetration point A Nelson 4 & 5 (“N-4, N-5”) • Drilled 2011 & 2014 • Current production 8 & 14 MMcf/d • Cumulative production 13 & 6 BCF B Reservoir Porquero CDO Total Net pay (ft. TVD) 52 162 214 N-4 Avg. porosity (%) 23% 22% Net pay (ft. TVD) 107 117 224 N-5 Avg. porosity (%) 27% 22% Net pay (ft. TVD) 104 162 266 N-13 Avg. porosity (%) 26% 20% 10

Palmer-2 Appraisal Well Encounters 81 Feet of Pay VIM 19 SSJN 7 VIM 5 VIM 21 Palmer-2 Esperanza Palmer Field Palmer-2 targeting CDO + Porquero upside Geoseismic section along Palmer-2 wellbore trajectory Depth structure with Fluid Factor extraction (AVO) at top CDO level Palmer-1 Palmer-2 B A Palmer-1 Drilled Jul ’14 Palmer-2 Current production 10 MMcf/d B Cumulative production 9 BCF A 1 KM Penetration point Surface pad location AVO attribute event Palmer-1 Palmer-2 Reservoir CDO CDO Net pay (in ft. TVD) 64 81 Porosity (%) 16-22% 23% Test rate (in MMcf/d) 64 29 11

Nelson-7 Development Well Encounters 221 Feet of Pay VIM 19 SSJN 7 VIM 5 VIM 21 Nelson-7 Esperanza Nelson Field Nelson-7 encounters gas in Porquero and CDO Top CDO depth structure Geoseismic section along Nelson-7 wellbore trajectory 500 M A Nelson-7 B Penetration point Nelson-7 B A Nelson 7 success Reservoir Porquero CDO TOTAL Net pay (ft TVD) 56 165 221 Porosity (%) 23% 18% 12