Canacol Energy Ltd. · BVC:CNEC
Canacol Energy — Investor Presentation (November 2015)
16 slides from Canacol Energy's investor presentation, November 2015
Slide 1: Growth From A Diverse Portfolio
Growth From A Diverse Portfolio Promigas pipeline construction (@CANAGOL ENERGY LTD. Nov ‘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 >$1.2 B(1) Discovered >50 MMboe in 2P reserves Exploration 16-for-25 wells (64%) OIL GAS Development 53-for-55 wells (96%) Large natural gas reserve base until oil rebounds +59% CAGR in 2P gas reserves 2P reserves(1) Gas 36
Slide 4: Gas and tariff oil focus
% of CNE s total production Oil Tariff Gas and tariff oil focus Gas 52% insensitive, as of Sep Gas 3,455 boepd (32%) Tariff 2,156 (20%) 52% 40% Reduce exposure to oil price volatility For , up to ~ % of corporate production is Jun '14 Sep '14 Dec '14 Mar '15 Jun '15 Sep '15 insensitive to global oil
Slide 5: 2016 E&D budget and targets
$8 MM E&D budget for 1 ~63% development Light oil Oriente $8 MM Llanos Dry gas For 2016: $33 MM Lower Magdalena $43 MM Ĺ production from 20 ĺ 81 MMcf/d 49% Ĺ gas ebitda from $30 ĺ $135 MM 1 gas well left in mid-Nov 1 Dry gas Oboe-1 appraisal well Pipeline to Jobo Light oil Firm-up exploration leads
Slide 6: Colombia's gas demand is set to increase ~3x faster than world demand
Colombia s gas demand is set to Demand for gas in Canacol s target increase ~3x faster than world demand market (Caribbean coast) is set to accelerate ~3x faster than country demand MMcf/d 500 +6% 450 400 Thermoelectricity +1% +10% CAGR(1) 350 +4% 300 -2% +2% 250 200 Bogota 150 +3% 100 +2% 50 0 '14
Slide 7: Gas supply shortfall on Colombia's Caribbean Coast
primary gas fields supply Colombia s Caribbean Coast Simply backfilling declines nearly Ballena, Chuchupa, and La Creciente supply doubles Canacol s gas business(3) (actual) 476 MMcf/d(1) (estimate) 340 MMcf/d(2) 18 projected demand 510 MMcf/d(1) Chuchupa Ballena SHORTFALL -170 MMcf/d Riohacha (now
Slide 8: Quadruple gas production to 81 MMcf/d
Cartagena 7 gas fired power plants Oct Finish 15 km flow line, tie Clarinete to Jobo From 120 to Nov Upgrade Jobo facilities 50ĺ140 MMcf/d 185 MMcf/d Filadelphia 2016 Quadruple gas production 20 ĺ 81 MMcf/d La Creciente Expand gas ebitda $30 ĺ $135 MM Sincelejo 2016 Gas field Compressor +65 MMcf/d o
Slide 9: Remarkable gas platform
60,000 Remarkable gas platform 50,000 40,000 9 gas sales agreements insensitive to world prices Customers (yrs.) 5-15 30,000 Gas sales price estimate (/MMbtu) $5.51 20,000 $6.28 10,000 Price escalation (/yr.) 2-3% Avg. 0 boepd '15e '16e '17e '18e '19e '20e ~80% operating margin per MMcf/d Netback (/
Slide 10: Geography, geology, gas
Geography La Creciente Fastest growing gas market in Colombia 3D World >> Colombia >> Colombia s Caribbean Coast +1% +3% +6% per yr. VIM 19 Geology 100% Repeatability from Cienaga de Oro reservoir Nelson Palmer Clarinete pipeline VIM 5 100% Gas Growth platform 362 BCF(1) + >3 TCF upside(2) 50 prospe
Slide 11: Oboe-1 appraisal well
VIM 5 3D Upper Zone GWC @ -6,410 ft subsea Oboe-1 appraisal Oboe-1 in mid-Nov 1 … Opportunity 209 BCF(2) ~3,000 acres 3km Clarinete-2 ST Subcrop edge (1) Reserve report as of Jun , pre-tax NPV-10 127 ft of pay 23% porosity Clarinete-1 (2) Resource report as of Jun . Represents best case unrisked res
Slide 12: Llanos oil activities and exploration upside
Las Maracas ~12 MMbls Leono 27 MMbls oil trend(1) Jaga Pantro 08ĺ present Tigro Blocks Rancho Hermoso (100%) and LLA 23 (90%) Net acres / oil fields 112k / 6 LLA 23 Cravo S ~9 MMbls Success 93% (27/29 wells) Remaining 2P reserves 5 MMbls(2) Cravo E ~8 MMbls Strong netbacks despite a gloomy pricing e
Slide 13: 750k net acres of shale oil upside
VMM 2 Santa 1 3 Isabel 750k net acres 2 VMM 3 Shell Shell N Ecopetrol 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 mean estimate f
Slide 14: Gas focus until oil rebounds: 2016-2020
Gas focus until oil rebounds 2016 → 2020 Prove up >280 MMboe(3) Production Sep 10,727 boepd(1) 16 average: Contracted gas 14,200 boepd Oil TBD in budget 2P reserves Dry gas 362 BCF (64 MMboe)(1) Light oil 16 MMbls(1) 1 e → 20e, exploit a diverse portfolio 2P reserves production +21% CAGR, 11kĺ35k bo
Slide 15: Capitalization and debt facilities
TSX (CNE), BVC (CNEC), OTCQX (CNNEF) In MM BNP Paribas, new long-term credit agreement FD shares outstanding (MM) 160.8(1) $200 MM, $180 MM drawn Market capitalization US $400(2) Replaces existing senior credit agreement Bank debt $255 Matures Sep Working capital surplus ($50) Net debt $205(3) No pr
Slide 16: Clarinete Discovery, Dec '14
Clarinete Discovery, Dec ‘14
Canacol Energy — Investor Presentation (November 2015) on 6ix