Canacol Energy Ltd. · BVC:CNEC
Canacol Energy — Investor Presentation (July 2015)
16 slides from Canacol Energy's investor presentation, Jul 15, 2015
Slide 1: Growth From A Diverse Portfolio
Growth From A Diverse Portfolio @CANACOL ENERGY LTD. July “15
Slide 2: Forward-looking statements and barrels of oil equivalent
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 stateme
Slide 3: Proven oil & gas finders in Colombia and Ecuador
Proven oil & gas finders in Colombia and Ecuador Paid ~$230 MM Value created >$1 B Discovered >50 MMboe in 2P reserves Exploration 15-for-24 wells (63%) OIL GAS Development 51-for-53 wells (96%) Gas focus until oil rebounds +54% CAGR in 2P gas reserves CY guidance(1) 10-12,000 avg. boepd (60% WTI in
Slide 4: Gas and tariff oil focus
% of CNE s total production Oil Tariff Gas Gas and tariff oil focus % insensitive, as of Mar Gas ~3,500 boepd (32%) Tariff ~1,700 (16%) 32% 24% 48% Reduce exposure to oil price volatility Jun '14 Sep '14 Dec '14 Mar '15 % insensitive for CY estimate $ / boe -29% $19.17 Dec '14 Lean machine Mar '15 L
Slide 5: E&D budget and production growth
$ MM E&D budget for ~63% development $ MM spent YTD May /$ MM remaining Light oil Oriente $8 MM Llanos Dry gas 4x production starting in Dec $33 MM Lower Magdalena $43 MM Ĺ production from 20 ĺ 83 MMcf/d 49% Ĺ gas ebitda from $30 ĺ $150 MM(1) 3 wells and workovers left in Dry gas Starting July , wel
Slide 6: Projected >10x increase in gas revenues and EBITDA
$500 Projected >10x Ĺ in gas revs & ebitda $400 Each gas contract is locked-in, take-or-pay contracts: Customers (yrs.) 5-15 $300 Volumes (MMcf/d) 118 Gas sales price range (MMbtu) $5-$8 $200 Price escalation (/yr.) 2-3% $100 $ MM $- e ĺ 20e gas activities / yr. '15e '16e '17e '18e '19e '20e Spend ~
Slide 7: Colombia's gas demand growth
Colombia s gas demand is set to Demand for gas in Canacol s target increase 9x faster than world demand market (Caribbean coast) is set to accelerate 1.7x faster than country demand MMcf/d +15% 1,200 Thermoelectric +0% 1,000 Transport +10% 800 -3% +3% Ecopetrol 600 Petrochemical Bogota Industrial +2
Slide 8: Caribbean coast gas supply and demand
Ballena Chuchupa 3 Guajira fields -20% y/y Riohacha Caribbean Sea Caribbean coast Barranquilla Demand ~575 MMcf/d in e 7 gas fired 14ĺ e CAGR + % power plants Supply ~559 MMcf/d in Lower Mag 3 Guajira fields declined ~20% y/y (blow-down) Cartagena Basin Supply options were limited in the Lower Mag <
Slide 9: Geography, Geology, Gas
Geography La Creciente Fastest growing gas market in Colombia 3D World >> Colombia >> Colombia s Caribbean Coast +1% +9% +15% per yr. VIM 19 Geology 100% Repeatability from Cienaga de Oro reservoir Nelson Palmer Clarinete pipeline VIM 5 100% Gas Growth platform 345 BCF(1) + >3 TCF upside(2) 50 prosp
Slide 10: Clarinete appraisal program
VIM 5 3D Upper Zone GWC @ -6,410 ft subsea Oboe-1 appraisal well program in Oboe-1 + Clarinete-2 ~3,000 acres Opportunity ahead… 80 MMcf/d for 10 yrs. Clarinete-2 Subcrop edge appraisal (1) Reserve report as of Feb , pre-tax NPV-10 (2) Resource report as of Feb , pre-tax NPV-10 Clarinete-1 10
Slide 11: Gas infrastructure and production milestones
Cartagena 7 gas fired power plants Oct Finish 15 km flow line, tie Clarinete to Jobo From 120 to Dec Upgrade Jobo facilities 50ĺ140 MMcf/d 185 MMcf/d Filadelphia Dec Quadruple production 20 ĺ 83 MMcf/d La Creciente +58 MMcf/d Expand ebitda $30 ĺ $150 MM(1) Sincelejo Dec Gas field +65 MMcf/d Compress
Slide 12: Llanos oil activities
Las Maracas ~12 MMbls L 26 MMbls oil trend(1) P 08ĺ present Blocks RH (100%) and LLA 23 (90%) Cravo S Tigro Net acres / oil fields 112k / 6 ~9 MMbls Success 89% (32/36 wells) LLA 23 Cravo E ~8 MMbls Remaining 2P reserves 10 MMbls(2) New CY Q 3D Production 4,512 bopd Realized price / netback $38.43 /
Slide 13: 714k net acres of shale oil upside
VMM 2 Santa 1 3 Isabel 714k net acres 2 VMM 3 Shell Shell N Ecopetrol Drilling VIM 37 CNOOC D&M Report reveals large upside present for Canacol(1) Covers only 3 of 7 prospective shale oil blocks Exxon S COR 39 4 5 COR 4 Exxon N 6 COR 11 7 COR 12 S (1) Represents DeGolyer & MacNaugton resource report
Slide 14: La Luna Shale wells
La Luna Depth Structure Source Rock Maturity Picoplata-1 (20% WI) Mono Araña-1 Picoplata-1 Las Lajas-1 TD (Jan ‘15) 16,406 ft. Tested 590 bopd Tested 250 bopd Porosity 11% Porosity 10% Drilled 1,369 ft. La Luna shale Mono Araña-1 (incl. 740 ft. core) UMIR Picoplata-1 Section over-pressured (15.3 ppg
Slide 15: Diverse portfolio production outlook
Gas focus until oil rebounds e 10-12,000 boepd CY guidance(1) 10-12,000 boepd 100% from 2P reserves (60% WTI insensitive) 2P reserves Dry gas 345 BCF (61 MMboe)(1) Light oil 23 MMbls(2) e ĺ 20e, exploit a diverse portfolio ĺ e Prove up >280 MMboe(3) 2P reserves production +20% CAGR, 11kĺ32k boepd Ex
Slide 16: Capitalization and debt facilities
TSX (CNE), BVC (CNEC), OTCQX (CNNEF) BNP Paribas, new long-term credit agreement In MM $200 MM, fully drawn Shares outstanding 126.4 USD in MM Replaces existing senior credit agreement Market capitalization $272.4(1) Matures Sep Bank debt 275.0 Positive working capital (47.4) (2,3) No principal paym