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Steppin On The September 2016 High Priced Natural Gas Generating near record cash flows despite significant oil price volatility gas Forward Looking Statements This presentation may include certain forward looking statements. All statements

  1. Steppin’ On The September 2016 High ‐ Priced Natural Gas Generating near record cash flows despite significant oil price volatility gas

  2. 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

  3. Canacology A history of discovery • Dual ‐ listed TSX and BVC Supply ‐ scarce Caribbean natural gas market • Enterprise value $732 MM • Ownership by insiders ~25% Natural Gas • ’16e guidance 16 – 17,000 boepd $135 MM EBITDAX $90 MM capex • Year end 2015 2P reserves 79 MMboe Light Oil • Pre ‐ tax NPV ‐ 10 $1.4 B S. Pacific Ocean Shale Oil • Contracted gas sales price (1) $5.61 / MMbtu • 2P F&D cost $2.85/Boe Colombia • + Mid ‐ year 2016 2P reserves + 5 MMboe Light Oil • Substantial exploration ~1,574 MMboe Ecuador resource potential (2) Canacol • Blocks / gross acres 21 / 3.0 MM 140 280 420 560 Km 3 (1) 2016e average (2) Management’s estimate of net unrisked recoverable resource potential

  4. Colombia’s Restless Gas Finder Canacol discovered more gas than all Colombia explorers, combined (1) +47% CAGR in 2P reserves • Dry natural gas – record cash flow 2P reserves in MMboe 79 (2) • ‘13 → present oil gas 4 discoveries (83% success) +302 BCF (+53 MMboe) 14 • Gas produced ~31 BCF 63% exploration success • Large gas reserves underpin gas sales contracts to 2020 and beyond • Exploration resource 2.4 – 2.8 TCF (3) potential 43 35 82% 65 gas 23 • Oil – when the price is right 18 • ‘08 → present 12 discoveries (57% success) 18 • Oil produced ~18 MMbls 11 20 • Matchless oil field 55 / 57 wells (96% success) 8 7 17 developer • Portfolio 17 / 21 blocks (83% oil) '09 '11 '13 '15 ~2.2MM acres (1) Source: ANH, over the trailing 5 ‐ yrs. (2) Excludes mid ‐ year 2016 2P reserves for Oboe 1 gas discovery 1,057 MMbls (3) (3) Management’s estimate of net unrisked resource potential 4

  5. A Passion To Explore, And A Drive To Produce +31% projected CAGR in corporate sales Fixed priced gas contracts erase oil volatility Expressed in boepd ‘16e sales mix 40,000 High netback natural gas 78% +31% 86% Tariff oil insensitive 8% 17,817 16,500 Light oil 11,746 14% 1Q '16 '16e avg. 2Q '16 Late '18 ‐ post new cash sales (1) pipeline • • ‘15 → ’16e : +101% increase to EBITDAX ($67 → $135 MM) (2) >80% operating margins for natural gas • ~40% reduction to G&A $5.60/Mcf avg. sales price • $.30/Mcf operating costs • Fixed price gas contracts erase oil volatility • $4.56/Mcf netback 5 (1) Includes deferred revenue cash receipts (2) Budgeted $40/Bbl WTI

  6. Sleep Deprived Over Oil Prices? Not Canacol… Oil prices at zero? Canacol generates >$100MM EBITDAX Pursuing dry natural gas that features stable pricing EBITDAX in US$ MM Quarterly average MMbtu $153 MM $12 $142 $130 $60 $118 $10 CANACOL $107 MM ‘16e avg. $5.60/mcf $45 81% operating margin $8 LT gas contracts w/ 2 ‐ 3% price escalation $6 $30 EUROPE $4 $15 USA $2 CANADA $0/Bbl $ ‐ 1 2 3 4 5 WTI oil price sensitivity 6

  7. Epic Gas Deficit On Colombia’s Coast Canacol’s plan to boost gas production to solve supply shortfall Chuchupa 1 2 Ballena • Supply decreasing 20% / yr. from 3 mature fields Caribbean Sea Barranquilla • ‐ 100 MMcf/d per year decline (1) 1 2 3 Chuchupa Ballena La Creciente Reficar Cartagena • Demand increasing 3% / yr. for the past 10 ‐ yrs. 2018 → 2016 Pipeline pipeline +100 MMcf/d and projected to grow at 3 ‐ 4% through 2020e 3 La Creciente 65 MMcf/d • Canacol 2016e 90 MMcf/d • Gas EBITDAX $135 MM Canacol’s 5 gas fields Jobo facility Clarinete, Oboe, Nelson, Nispero, Palmer • Canacol 2018e → 190 MMcf/d 25 MMcf/d • Gas EBITDAX/yr. ~$300 MM Cerro Matoso • By 2020e, Canacol aims to supply ~42% of the coast mine • Solve 77% of the Caribbean's supply shortfall 30 60 90 120 Canacol Gas pipeline Km 7 (1) Average annual decline for each of the trailing 2 years

  8. The Only Driller In Town Dominating the world’s most robust market for natural gas Colombia’s gas pipeline network Chuchupa Ballena • X ‐ Canacol, only 3 producing gas fields supply Barranquilla the Caribbean Cartagena Gas pipelines inaccessible to Caribbean Sea supply ‐ scarce La Creciente Caribbean • Less than 5 exploration wells per year were drilled in the area over the trailing 8 ‐ yrs. (1) Nelson • 39 total exploration wells Palmer Clarinete • 42% success (vs. Canacol 83%) Oboe Nispero • X ‐ Canacol, ~340 MMCF/d supply shortfall by 2020e 8 (1) ANH exploration wells drilled for Guajira onshore and offshore and Lower Magdalena Basins

  9. ↑ Reserves + ↑ Productive Capacity From 5 Gas Fields VIM 5 100% WI 3D 3D 3D Oboe Clarinete Clarinete ‐ 3 Esperanza/ VIM 21 Nispero 100% WI Jobo 10 km Trombon ‐ 1 Canacol’s fields & discoveries prospects / leads Nelson Top Cienaga de Oro time Nelson ‐ 6 Porquero structure map (5 X 3D seismic merged (615km 2 ), reprocessed Palmer Nelson ‐ 8 CDO and remapped in 2016) 9 3D

  10. Opportunity To Book Reserves Against By ‐ passed Pay Nelson ‐ 6 gas exploration well Nelson ‐ 6 Nelson Field’s shallow gas potential A B Porquero net pay map N ‐ 5 N ‐ 4 1,000 Area 640 acres Avg. porosity 29% N ‐ 2 GIIP 44 Bcf 1,300 TOP PORQUERO Porquero UP PORQUERO opportunity N ‐ 3 1,600 A M PORQUERO Nelson ‐ 6 1,900 NELSON B TOP CDO 2,200 FAULT BASEMENT AVO event 2,500 Nelson ‐ 5 Porquero reservoir petrophysics • Up to 62 ft. reservoir net pay encountered in existing Nelson wells Gross Thickness 153 ft Net pay 62 ft Porosity 31% • Oct 2016e spud of Nelson ‐ 6 • Exploration target Shallow Porquero sandstone reservoirs • Potential GWC ‐ 5500’TVDSS 31 Bcf EUR (1) • D&A / depth $4.1 MM / ~6,200 ft. • Objective Test net pay to establish reservoir productivity 10 (1) Management’s estimate of net unrisked resource potential

  11. Nelson Has More To Develop… Nelson ‐ 8 gas development well Nelson field’s 4 existing producers Nelson ‐ 8 B A Cienaga de Oro depth structure map Gross sand 383 ft. 1,000 Net pay 167 ft. N ‐ 5 Avg. porosity 23% N ‐ 4 1,300 1 km N ‐ 2 PORQUERO N ‐ 3 1,600 CIENAGA B Nelson ‐ 8 1,900 NELSON A FAULT 2,200 GWC BASEMENT ‐ 7,550 ft. • Nov 2016e spud of Nelson ‐ 8 • $3.2 MM work ‐ over 4 wells starting in Sep ‘16 • Target • Tubing upgrade (2 7/8” → 3 ½”) to extend well Cienaga de Oro reservoir sandstones productive life and optimize reserve recovery • Est. IP 8 ‐ 12 mmcf/d • Est. reserve re ‐ class • $4 MM upgrade Jobo facility and Nispero ‐ ~14 BCF from PUD to PDP • DC&C / depth $6.3 MM / ~9,900 ft. Jobo flow line 11

  12. Well #3 Into 163 BCF Discovery (1) Clarinete ‐ 3 gas development well Opportunities at Clarinete continue to multiply Cienaga de Oro depth structure map CLA ‐ 3 CLA ‐ 2ST B Oboe ‐ 1 1,500 GWC ‐ 6,415 ft. M MIOCENE 1,650 L. ATTIC BLUE SAND 1,800 RED SAND B A 1,950 CLA ‐ 2ST 500 M Sub ‐ crop BASAL SAND edge CLA ‐ 3 2,100 CLA ‐ 1 BASEMENT AVO event • 4Q ‘16 spud of Clarinete ‐ 3 • Target Cienaga de Oro reservoir sandstones • Estimated IP 10 ‐ 12 mmcf/d • Reserves re ‐ class ~25 BCF from PUD to PDP • DC&C / depth $6.4 MM / ~10,000 ft. 12 (1) Represents 2P reserves as of December 31, 2015

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