The Leader In Natural Gas Production Growth Forward Looking - PowerPoint PPT Presentation

June 2018 The Leader In Natural Gas Production Growth

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 gas 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 NASA at night, 2018 All dollar amounts are shown in US dollars, unless indicated otherwise

Why Natural Gas In Colombia? Caribbean Sea • South America’s oldest/most stable democracy • 3 rd largest South American economy gas • 2016 peace treaty = security • OECD newest member • Accenture Consulting ranks Colombia’s oil & gas regulatory reform In the top 3 (1) Bogota • Regulatory stability Colombia • Natural gas in Colombia • Demand growth +3% growth/y (2) • Supply decline -15%/y (2) • Avg Natural Gas residential penetration 65% (3) • Low NGV penetration (3) • % of total energy consumption 26% (3) 70km (1) Accenture “Strategy Energy”, March 2016 Canacol’s gas E&P blocks (2) For Colombia’s Caribbean Coast market 3 (3) Promigas Annual Market Report oil E&P blocks

Colombia’s Natural Gas Supply Deficit Colombia gas supply (2) Mature Chevron fields In MMcf/d ~282 MMcf/d Barranquilla 1,200 Anticipated new 1,000 start date for Related to Ituango Ituango coming online. Now 800 delayed 2-yrs Cartagena 600 → 230 MMcf/d Cusiana-Cupiagua 400 Hocol 122 MMcf/d (3) 30 MMcf/d 200 Canacol Frontera Guajira - 25 MMcf/d '17 '18e '19e '20e '21e '22e '23e '24e '25e '26e X-Canacol, Caribbean natural gas supply -15%/yr. demand +3%/yr. No Domestic Competition Chevron ~282 MMcf/d Canacol Hocol ~ 30 MMcf/d 114-129MMcf/d (1) Frontera ~25 MMcf/d Cerro Matos0 Transportation infrastructure capacity is key challenge to growth 10 km (1) 2018 guidance estimate Canacol gas blocks (2) Source: Wood Mackenzie 4 Promigas pipeline expansion Total Colombia demand represents low case Ituango hydroelectric project delayed 2 years / 2700 Mw. Existing gas pipelines (3) Represents the mid point of 2018e guidance

Canacol’s Consistent Growth 40,300 Natural gas production growth profile 230 • Solid gas portfolio 40,400 • E&P contracts / net acres 5 / 1.1 MM • Take/pay fixed wellhead gas pricing $4.75/mcf (1) • Robust operating margins >70% +89% • Access to key transportation infrastructure • Continuous production and reserves growth • Est.‘18 → ‘19 production growth +89% 114-129 • Outperforms industry peers in expected production 20,000- growth rate 22,600 +44% 81 • 2P reserves adds over the trailing 4-yrs. +16% 409 BCF In MMcf/d 70 • Outstanding nat. gas explorat success 14,200 86% 12,400 In boe/d • Team created $1B+ of value from 3 gas acquisitions 5 (1) Based on current gas contracts, net of transportation costs '16a '17a '18e '19e

Continuous Reserves Growth Discovered 409 BCF in 2P reserves over the trailing 4-years +35% CAGR • Natural gas success 2P reserves in MMboe 103 • Acquisitions $170 MM oil gas • Capital invested 14 $244 MM 85 $414 MM Natural gas 79 $1.4 B in value (1) • Value created $1.4 B (1) 13 • Exploration drilling success 86% 14 16-yr. reserve life • ‘17 2P reserve replacement 399% • Solid reserve base underpins value 43 89 • Blocks/net acres 35 5 / 1.1 MM 72 65 23 • 2P gas reserves 505 BCF 18 • Resource upside >2 TCF (2) • Resource value $789 MM (3) 20 18 17 11 8 7 • Delivering sustainable cash flow from a '09 '10 '11 '12 '13 '14 '15 '16 '17 16-yr. reserve life • 2P reserves F&D Reserve reports as of 12.31.17 $0.63/Mcf (4) Includes Canacol’s oil assets in Ecuador (1) Pre-tax NPV- 10 for Canacol’s 2P gas reserves as of 12.31.2017 (2) Represents gross mean unrisked resources from Gaffney, Cline & Associates resource report, 12.31.16 (3) Expected monetary value discounted at 10%, Gaffney, Cline & Associates resource report, 12.31.16 6 (4) As of 12.31.2017

Expanding Infrastructure To Achieve 230 MMcf/d in 2019 Dec ’12 +20 MMcfd Barranquilla • Corporate acquisition of Shona Energy • 80 km pipeline to Cerromatoso ferro nickel mine Cartagena Apr ‘ 16 +65 MMcfd -Corp Gas Sales 85 MMcfd (1) • Promigas-funded 190 km pipeline Dec ‘17 +40 MMcfd -Corp Gas Sales 120 MMcfd (2) • Private-funded 6-in. 82km line Jobo → Bremen Bremen (“Sabanas”) Sincelejo Dec ‘18 +100 MMcfd -Corp gas sales 230 MMcfd (3) • Promigas-funded expansion 20-in. line 70 km Jobo → Sincelejo 100 km Cartagena → Barranquilla Jobo Station 2021 +100 MMcf/d -Corp gas sales 330MMcfd (3) Cerro Matos0 • Future pipeline project to Barranquilla 10 km (1) Avg Gas Sales 2H ´ 16 or Medellin Canacol gas blocks (2) 2018 mid-point Guidance Estimate 7 Pipeline expansion (3) Gas Sales Estimates Existing gas pipelines To Medellin

2018 Guidance & Key Objectives • Key objectives • 2018 guidance • Gas 1. Achieve 230 MMcf/d exit rate 114 – 129 MMcf/d • Oil 1,700 boepd 2. Target >100% conventional reserves replacement • 7 wells 4 exploration & appraisal 3. Divest oil assets 3 development 4. Retain non-conventional shale oil assets operated by workovers ConocoPhillips for upside potential • Expand gas processing From 200 → 330 MMcf/d 5. Become pure-play, Colombian gas E&P company Preoperative seismic, facilities workovers & other $30MM $80 MM capital budget for 2018 Drilling Schedule 2018 US $ in MM Block 1Q 2Q 3Q 4Q Exploration Gaiteros-1 VIM-5 Preoperative Exploration & Breva-1 VIM-21 Seismic, Development Borojo-1 Esperanza workovers & $33MM other Appraisal/development $30MM Pandereta-3 VIM-5 Chirmia-1 VIM-5 Facilities & Equipment Canahuate-3(East) VIM-21 $17MM Canahuate-2(West) VIM-21 8 Fully funded from existing cash and cash flows

A Conventional Natural Gas Success Story • 12 out of 14 successful exploration wells • 86% success • 2 reservoirs Pandereta Chirmia • Ciénaga de Oro (“CDO”) (deep) Oboe • Porquero (shallow) Clarinete Field 143 BCF • Key stats VIM 21 Cañahuate 3(E) Cañahuate 2(W) Avg. Net pay Test rate Well cost Jobo Station Canahuate Ft. TVD MMcf/d $ MM CDO 85 42 $4.5 VIM 5 Porquero 59 30 $3.9 Nispero Avg. 72 38 $4.2 Trombon Breva 5 km Cañandonga Canacol gas • 44 prospects / 2 TCF upside (1) Esperanza 3D seismic Toronja Flow line Lead Palmer Prospect “E” Exploration ‘18 prospect “A” Appraisal Nelson Field (1) Gaffney Cline report, effective 12/31/16 193 BCF 9 Please see page 2 for cautionary statements

3 rd Consecutive Shallow Porquero Gas Discovery Breva-1 – knowing that red means gas 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) in process 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 • Emerging and important new Porquero play type Toronja-1 14 ft. Nelson-5 79 ft. • Canacol investigating future Porquero upside 3D across 1.1 MM net acres Nelson-6 39 ft. AVO extraction over Mid Porquero SST marker 1 KM 10