Two gas projects to nearly triple gas production by Dec 2018 (1) (1) - PowerPoint PPT Presentation

September 2017 Two gas projects to nearly triple gas production by Dec 2018 (1) (1) From 85 → 230 MMcf/d, or 2.7x

Forward Looking Statements Gas deficit This presentation may include certain forward looking statements. All statements other than statements of historical fact, included herein, including, without 20 blocks / limitation, statements regarding future plans and objectives of Canacol Energy 2. 2 MM net acres Ltd. (“Canacol” or the “Corporation”), are forward ‐ looking statements that Natural Gas 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 Shale oil 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. Light oil Barrels of Oil Equivalent S. Pacific Ocean Shale oil Barrels of oil equivalent (boe) is calculated using the conversion factor of 5.7 Mcf Colombia (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 Heavy oil applicable at the burner tip and does not represent a value equivalency at the wellhead. Production and Reserves Light oil Production represents net before royalty Reserves represent 2P reserves and before tax NPV ‐ 10 as of December 31, 2016 Ecuador USD All dollar amounts are shown in US dollars, unless indicated otherwise 140 280 420 560 2 Km 2

The Path To ~$300 MM EBITDA TSX: CNE | BVC: CNE.C In MM, except CDN $/share amounts • ‘17 corporate production guidance TSX $/share (9/20/17) CDN $4.21 • ↑ gas production 85 → 130 MMcf/d (Dec ’17 exit) Fully diluted shares outstanding (1) 177 • Fully funded capex $89 MM • Production Market capitalization (2) US $608 18 ‐ 19k boepd % gas 81% Net debt (3) $230 Enterprise value US $838 • ‘18 gas production guidance Insider ownership 22% • ↑ gas production 130 → 230 MMcf/d (Dec ’18 exit) (1) Includes in ‐ the ‐ money options based on CDN $4.21 / share price ~140 MM shares in the float (2) Converted from CDN → USD exchange rate (0.82) as of 9/20/17 (3) As of 6/30/17 3

Strong Track Record Of Asset Optimization Added 314 BCF in 2P reserves over the trailing 3 ‐ yrs. • A conventional gas success story +52% CAGR in 2P reserves In MMboe (1) oil gas • Recent 2P NPV ‐ 10 $1.2 B (2) 85 • Gas exploration success 8/9 wells (89%) 79 • 1P / 2P reserve 13 166% / 14 replacement 194% y/y • Avg. F&D cost $0.44 / MCF (3) 43 85% • The lowest cost gas operator always wins 35 gas 72 65 23 For the 3 months ended 6/30/17 18 $ / MCF % margin Natural gas revenues $ 4.96 20 Royalties $ (0.64) 13% 18 17 11 8 7 Production expenses $ (0.36) 7% Operating netback $ 3.96 80% '09 '10 '11 '12 '13 '14 '15 '16 Oil Gas In US dollars unless otherwise noted (1) Represents before tax corporate total (oil + natural gas) 2P reserves value as of 12/31/16 (2) Represents before tax natural gas only 2P reserves value as of 12/31/16 4 (3) Average over the trailing 2 ‐ yr. period

Two Gas Projects To Nearly Triple Gas Production By Dec ‘18 Chuchupa Ballena Sabanas +40 MMcf/d 1 Barranquilla Pipeline Co. 130 MMcf/d Caracoli Caribbean Sea Dec ‘17 • $40 MM pipeline; announced $30 MM Paiva private financing Cartagena Reficar • In Aug ‘17, build 6 ‐ in. pipeline Jobo → Filadelfia Sincelejo La Creciente 2 +100 MMcf/d 2 1 230 MMcf/d Dec ‘18 Jobo facility • Twin Jobo → Sincelejo pipeline 8 gas fields 5 blocks • Construct new pipeline Cartagena → 1.1 MM net acres Barranquilla Canacol gas blocks New compressor Gas pipeline Compressor ‘17 pipeline 10 km 5 Gas field ‘18 pipeline

Canacol’s Sweet Spot Replacing Chevron’s gas supply to the Caribbean Chuchupa Ballena • Gas demand +3%/yr. through 2025e (1) supply ‐ 20%/yr. decline ongoing or ‐ 100 MMcf/d (2) Caribbean Sea • Excess demand ~70 MMcf/d avg. → ‘20e 600 Excess demand Cartagena 230 75 25 230 Lower Magdalena 138 477 85 Basin 432 400 381 337 La Creciente 299 265 200 3 mature producing fields Chuchupa, Ballena, & La Creciente 0 '15 '16 '17E '18E '19E '20E 6 (1)Source: Wood Mackenzie and UPME Colombia estimates (2) Average annual decline for the trailing 3 years

A Conventional Natural Gas Success Story X 3 exploration wells left for 2017 • Canacol Gas Bremen Sincelejo Strong base production and reserves 3 acquisitions ('12 ‐ '14) 96 BCF Trailing 3 ‐ yr. 2P reserve adds 314 BCF 2 1 VIM 19 Recent 2p reserves 410 BCF (1) Gas exploration success 8/9 wells (89%) Producing wells 14 Large resource upside SSJN7 Net acres 1.1 MM VIM 5 Blocks 5 Gross mean unrisked resources 2 TCF (2) BT EMV ‐ 10 US $789 MM (3) ’17 Gaitero ‐ 1 Prospects / leads 44 (1) As of Dec ‘16 reserve reports, net of ~50 BCF produced Oboe ’17 Pandereta ‐ 1 (2) Gaffney, Cline & Associates (“GCA”)prospective conventional natural gas resource Clarinete VIM 21 report, effective Dec ‘16 (3) Expected Monetary Value discounted at 10%, GCA Dec ‘16 Canahuate Nispero Legend Gas field Jobo Trombon Prospects / leads Facilities Existing pipeline Esperanza ’17 Cañandonga ‐ 1 1 Sabanas planned pipeline (12/1/17) 2 Promigas planned pipeline (12/1/18) Toronja 7 20 km Nelson Palmer

AVO Reduces Exploration Risk Discovered 314 BCF from 8 gas fields over the trailing 3 ‐ yrs. OBOE ‐ 1 FEB ‘16 PANDERETA ‐ 1 The hunt for repeatable anomalies CLARINETE ‐ 1 PANDERETA ‐ 1 CLARINETE ‐ 1 Dec ‘14 AVO extraction over the Mid CDO 1,200 ACORDEON ‐ 1 2.5 KM 1,400 Tubara Marker • Applying AVO technology to gas ‐ 1,600 charged sandstones Lower Tubara • Exploration success 8 ‐ for ‐ 9 (89%) 1,800 • Avg. net pay/well 78 ft. TVD Mid Miocene / Top CDO • Avg. test rate/well 33 MMcf/d 2,000 • Producers 14 wells Upper CDO 2,200 Mid CDO • >2 TCF of running room (1) Basal CDO 2.400 Fluid Factor (AVO) section (1) Represents gross unrisked mean resources from the Gaffney, Cline & Associates prospective gas resource report, effective Dec ‘16 8

Drilling For Repeatable Anomalies In The Porquero VIM 19 Jun ’17: Toronja ‐ 1 exploration well tested 46 MMcf/d SSJN7 VIM 5 VIM 21 Esperanza NELSON ‐ 6 TORONJA ‐ 1 Jun ‘17 Nov ‘16 1 1,200 1,400 1,600 Intra NELSON ‐ 5 Porquero PORQUERO 1,800 NELSON ‐ 4 NELSON ‐ 2 Top CDO 2.000 2 NELSON ‐ 3 2,200 NELSON ‐ 8 Basement PALMER ‐ 1 2.400 1 2 1KM Fluid Factor (AVO) section Mid Porquero time structure • Tested 46 MMcf/d • Exploration target • Work underway to tie Toronja into Jobo (3 kms) Porquero reservoir sandstones • Well cost • Porosity 41% below budget 20% 9

Toronja ‐ 1 Suggests Much More VIM 19 In Store For The Porquero SSJN7 VIM 5 VIM 21 Esperanza Nelson ‐ 5, Nelson ‐ 6 added 25 Bcf from the Porquero Formation (1) • Nov ’16 Nelson ‐ 6 spelled opportunity • Net pay 39 ft. TVD • Tested 23 MMcf/d ARANDALA ‐ 1 • Dec ‘16 Nelson ‐ 5 Porquero recompletion ↑ confidence • Net pay 79 ft. TVD CARAMBOLO ‐ 1 • Tested 13 MMcf/d BREVA ‐ 1 • Jun ‘17 Toronja ‐ 1 says more running room… • Tested 46 MMcf/d TORONJA ‐ 1 NELSON ‐ 5 • Aranadala ‐ 1, Breva ‐ 1, Carambolo ‐ 1 offer 3 follow ‐ up exploration locations NELSON ‐ 6 AVO extraction over Mid Porquero SST marker 1 KM 10 (1) Represents 2P reserves as of Dec ‘16 reserve report

Outlook 85 → 130 → 230 MMcf/d +49% CAGR in gas production Substantial liquidity enables execution MMcf/d US $ in MM ~$300 2Q ‘17 net debt $230 MM forecast 220 ‘19e ebitda ~$300 MM 180 230 140 $135 100 130 85 70 60 '16 '17 '17 exit '18 exit '16 '19e • For the remainder of 2017e: • Senior secured term loan • Drill 3 more gas exploration wells • Credit Suisse + syndicate / L+5.50% • Completion of Sabanas flow line • No re ‐ determination if oil prices fall • Mar ’19 → Mar ’22 ~$22 MM of principal payments for 13 consecutive quarters 11