On The Horizon Doubling Production To 230 MMcf/d September 2018 - PowerPoint PPT Presentation

On The Horizon Doubling Production To 230 MMcf/d September 2018

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. Production and Reserves Production represents net before royalty. Reserves represent 2P reserves and before tax NPV-10 as of December 31, 2017 USD 2 2 All dollar amounts are shown in US dollars, unless indicated otherwise

Why Natural Gas In Colombia? Caribbean Sea Colombia • South America’s oldest/most stable democracy gas • 3 rd largest South American economy • 2016 peace treaty = security unconventional • OECD newest member • Regulatory Stability (1) • Natural gas in Colombia (2) • Country´s gas demand ~ 1000 MMcfd Bogota • Caribbean Coast ~ 40% Colombia • Demand increasing 2-3% per annum • Main gas historical suppliers declining • Limited Competition • Canacol´s gas production • Current ~ 120 MMcfd 230 MMsfd in March´19 • 90% sold at wellhead in US$ escalated 2% per year • 2018 avg. wellhead price $4.80/ MMcfd (2) (1) Accenture “Strategy Energy”, March 2016: Accenture Consulting ranks 70km Colombia’s oil & gas regulatory reform In the top 3 Canacol’s conventional 3 (2) Average for 2 quarters ended 6.30.2018 oil E&P blocks

Colombia’s Natural Gas Supply Deficit Mature Chevron fields ~282 MMcf/d Barranquilla • Caribbean Coast gas demand 450 MMcf/d • Demand increasing 3% per annum (1) Cartagena • For 30+ yrs., Chevron supplied ~50% of all gas supply to Colombia • Supply declining 12% per annum (1) Hocol 30 MMcf/d Frontera 25 MMcf/d • Transportation Infrastructure capacity is key challenge to grow • Over the trailing 6 yrs., Canacol is the only active explorer in the Caribbean Canacol 114-129MMcf/d (1) Cerro Matos0 • Canacol is filling the gas supply gap 10 km Canacol gas blocks 4 Promigas pipeline expansion (1) Source: Wood Mackenzie Existing gas pipelines Total Colombia demand represents low case

Discovered 468 BCF In 5-years +32% CAGR in natural gas 2P reserves In MMboe oil gas • Natural gas success +10 103 • 16-yr. gas reserve life • Acquisitions $170 MM • Capital invested • 2P reserves F&D $0.63/Mcf (1) $244 MM $414 MM 85 • Value created 79 $1.4 B (2) • ‘17 2P reserve replacement 399% 89 89 72 • Solid reserve base underpins value 43 65 35 • Blocks/net acres 5 / 1.1 MM 20 • Dec ‘17 2P gas reserves 505 BCF 17 • Jul ‘18 2P reserve additions + 59 BCF • Resource upside 2.6 TCF (3) 23 18 18 14 14 13 11 8 7 ' 0 9 ' 1 0 ' 1 1 ' 1 2 ' 1 3 ' 1 4 ' 1 5 ' 1 6 ' 1 7 ' 1 8 YTD reserve adds from 3 wells Reserve reports as of 12/31/17 and 7/31/18 (1) As of 12/31/17 (2) Pre-tax NPV-10 for Canacol’s 2P gas reserves as of 12/31/17 (3) Represents gross mean unrisked resources from a resource report 5 prepared by Boury Global Energy Consultants, effective 7/31/18.

Canacol’s Consistent Growth 40,300 Natural gas production growth profile In MMcf/d 230 • Team created $1B+ of value • Solid gas portfolio from 3 gas acquisitions • E&P contracts / net acres 5 / 1.1 MM • Take/pay fixed wellhead gas pricing $4.85/mcf (1) +90% • Robust operating margins >75% 114-129 +44% • Continuous production and reserves growth • Est.‘18 → ‘19 production growth 81 +90% +16% 70 • 2P reserves adds over the trailing 5-yrs. 468 BCF • Outstanding gas exploration success 80% 6 (1) Based on current gas contracts, net of transportation costs '16a '17a '18e '19e

August 3 rd Environmental Permit Enables Canacol To Add +100 MMcf/d in ‘19 Dec ’12 +20 MMcfd • Acquired Shona Energy Barranquilla • 80 km pipeline → Cerromatoso nickel mine Apr ‘16 +65 MMcfd → 85 MMcfd Cartagena • Promigas-funded 190 km pipeline Dec ‘17 +40 MMcfd → 120 MMcfd • Private-funded 82km line Jobo → Bremen Bremen Sincelejo +100 MMcfd → 230 MMcfd Mar ‘19 • Promigas-funded expansion • 70 km Jobo → Sincelejo Jobo Station 100 km Cartagena → Barranquilla Cerro Matos0 +100 MMcf/d → 330MMcfd 2021 10 km Canacol gas blocks • Future pipeline to Barranquilla/Medellin 7 Pipeline expansion Existing gas pipelines To Medellin

A Conventional Natural Gas Success Story • Applying AVO to investigate the presence of gas-charged sandstones • 12-for-15 successful exploration wells • 80% success Pandereta Chirmia Oboe Clarinete Field • 8-for-8 successful appraisal/development wells 115 prospects / 143 BCF • 100% success 2.6 TCF upside (1) Acordeon • 2 reservoirs VIM 21 • Ciénaga de Oro (“CDO”) (deep) Jobo • Porquero (shallow) Canahuate Station VIM 5 • Key stats Nispero Trombon Avg. Breva Net pay Test rate Well cost 5 km Cañandonga Ft. TVD MMcf/d $ MM Canacol gas CDO 85 42 $4.5 Esperanza 3D seismic Toronja Porquero 59 30 $3.9 Flow line Lead Avg. 72 38 $4.2 Palmer Prospect “E” Exploration “A” Appraisal Nelson Field (1) Boury & Associates resource report, effective 7/31/2018 193 BCF 8

Mamay Expanding Canacol’s Gas Resource Runway La Creciente Guepaje Sincelejo • July ‘18 resource report increased prospective resources by 30% Bremen VIM 19 Canacol-gas '12 - '13 '14 - '16 '17 - '18 CAGR 100% WI Blocks 2 4 5 14% Promigas 2018 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 50% WI • Forward plan 2017 VIM 5 • ‘18 - ‘20 Ongoing exploratory drilling covered by 100% WI existing 3D seismic • ‘19 -’21 Acquire 3D seismic (VIM5, VIM19, SSJN7) VIM 21 100% WI Oboe • ‘20+ Exploratory drilling on new 3D seismic Pandereta (VIM5, VIM19, SSJN7) Chirimia Clarinete Acordeon Canahũate Jobo Canacol gas field Nispero Gas field Station Prospect Trombon Breva Lead 3D seismic Cañandonga Existing flow line Palmer Future flow line Esperanza Esperanza Facilities 100% WI 9 Toronja (1) Represents gross mean unrisked prospective resources 5 10 15 km

3 rd Consecutive Shallow Porquero Gas Discovery Breva-1 VIM-21 Replaying CDO success with AVO in the Porquero Breva-1 success yields at least 5 more locations Includes net pay in ft. TVD Porquero exploration Breva-1 Toronja-1 Nelson-6 Cachuate-1 Arandala-1 May '18 Jun '17 Nov '16 Test rate (MMscfpd) 25 24 23 Pay (ft. TVD) 29 14 39 Datil-1 Porosity 27% 20% 19% Days to drill 13 6 9 Carambolo-1 Total depth (ft. MD) 7,560 7,200 6,400 BREVA-1 Nuez-1 29 ft. • 3-for-3 exploration discoveries • Up to 5 additional locations Toronja-1 14 ft. Nelson-5 79 ft. • Emerging and important new Porquero play type 3D • Canacol investigating future Porquero upside Nelson-6 across 1.1 MM net acres 39 ft. AVO extraction over Mid Porquero SST marker 1 KM 10

Acordeon Running Room? SSJN 7 November ’18: Acordeon-1 exploration well on VIM 5 VIM 19 VIM 5 Well objective: Acordeon-1 Investigate presence of gas VIM 21 charged reservoir sandstones Esperanza supported by AVO methodology Chirimia ‘18 A Acordeon-1 Acordeon-3 B B Clarinete ‘14 B A-2 VIM 5 A-3 Acordeon-1 A Acordeon-A, -B,-C Depth Structure with Fluid Factor extraction (AVO) at Mid CDO level 1KM Surface pad location • Cienaga de Oro Formation target • 8,700 ft. TVD • Drill cost (D&A) $3.65 MM • Multiple follow up locations in success case Fluid factor section along Acordeon-1 and -3 • 3 km from Clarinete and Chirimia discoveries 11 • <1km tie-in to proposed Pandereta-Jobo flow-line

Divesting Canacol Conventional Colombia Oil By late September anticipated transaction close Ecuador • Closed the sale of Ecuador assets in Feb ‘18 Middle Magdalena Basin • $36.4 MM in cash proceeds Unconventional oil S. Pacific Ocean Colombia conventional oil Llanos Basin • $40 MM pending sale to Arrow Exploration Ltd. Light oil Upper Magdalena • 8 blocks and associated commitments Shale oil • Arrow common shares $25 MM • Cash $10 MM Caguan Putumayo Basin • Promissory note $5 MM Heavy oil Colombia Ecuador 140 280 420 560 Km 12