Canacol Energy Ltd. · BVC:CNEC

Canacol Energy — McDaniel & Associates — Conference Presentation (September 2017)

16 slides from Canacol Energy's conference presentation, Sep 28, 2017

  1. Slide 1: Colombia: a shift to unconventional oil and gas?

    Colombia: a shift to unconventional oil and gas? Derrick Dao, P. Eng. ddao@mcdan.com

  2. Slide 2: McDaniel & Associates is a leading international consulting firm

    McDaniel Overview McDaniel & Associates is a leading international consulting firm … Colombia Consulting expertise Global presence » Established in 1955 » Head office in Calgary, Canada » Internationally recognized expertise in: » Reserves evaluations » Resource assessments » A&D Advisory services »

  3. Slide 3: Having evaluated nearly 700 properties outside of Canada and United States

    McDaniel Overview …having evaluated nearly 700 properties outside of Canada and United Colombia States Diversified Experience Capability  Unrivalled experience in preparing reserves and resources evaluations using different reserves definitions and security exchange rules, and for a variety of fisc

  4. Slide 4: Working with many of the world's leading financial institutions

    McDaniel Overview … working with many of the world’s leading financial institutions and Colombia multinational conglomerates TECHNICAL & FINANCIAL ADVISORY McDaniel and Associates is relied on by prospective acquirers, financial institutions and equity funds to provide objective technical and financ

  5. Slide 5: Colombia is a positive example of a country re-structuring

    McDaniel Overview Colombia is a positive example of a country re-structuring… Colombia Industry History Colombia Historical Production and Reserves 3.5 1200 Production Lack of discoveries » Since 1951 the Colombian oil = industry operated and regulated by 3.0 Proved Reserves Declining Reserves + Pro

  6. Slide 6: Investment still required to replenish reserves and production levels

    McDaniel … but investment is still required to replenish reserves & Overview Colombia production levels … Ecopetrol total proved reserves Colombia Reserve Life Index (Oil) 2500 313.9 Proved reserves (MMboe) 2000 50 1500 40 RLI (years) 30 1000 20 500 10 0 0 2012 2013 2014 2015 2016 2017 Mexico Argent

  7. Slide 7: Fears of losing oil independence

    McDaniel … with fears by the Office of the Comptroller General of Colombia Overview Colombia losing its oil independence 1,000,000 Bopd peak oil production in 2013, with close to 2 billion barrels in total proved reserves 872,000 Average 2017 year end production estimate, with total proved reserves

  8. Slide 8: Investment opportunities still exist in Colombia, particularly unconventionals

    McDaniel Plenty of investment opportunities still exist in Colombia given the Overview Colombia initiatives to increase reserves, particularly in unconventionals E&P investment levels in Colombia $7bn of investment 9 $8.3b required for country to meet government 8 production targets 7 $2.1bn of E&P

  9. Slide 9: Government measures to ensure national energy security

    McDaniel …prompting the government to take additional measures to ensure Overview Colombia national energy security  Three special economic zones dedicated to facilitating offshore exploration in the Caribbean Sea  Tax and customs incentives offered to companies drilling offshore wells, including

  10. Slide 10: Colombia's shale prone Middle Magdalena Valley

    McDaniel Overview Colombia’s shale prone Middle Magdalena Valley Colombia Middle Magdalena valley basin Stratigraphic chart – La Luna formation Sep 28, 2017 10 Source: Platts Source: ANH

  11. Slide 11: Middle Magdalena La Luna comparison chart

    McDaniel Overview Middle Magdalena La Luna comparison chart Colombia La Luna versus other unconventional plays Eagleford Woodford Haynesville Bakken Marcellus La Luna VacaMuerta Oil/Gas Oil/Gas Gas Oil/Gas Gas Oil/Gas Oil/Gas Depth (ft) 4,000 - 13,000 6,000 - 14,000 10,000 - 13,500 4,000 - 11,000 4,

  12. Slide 12: La Luna formation – good TOC and pay

    McDaniel Overview Middle Magdalena La Luna formation – good TOC and pay Colombia Parallels to Eagleford La Luna formation  Comparison between core samples show comparable 1800 16 characteristics such as porosity, TOC and permeability  Porosity 14 1600  Eagleford ~ 7.3%  La Luna ~ 6.3% 12  Horiz

  13. Slide 13: La Luna: Some of Canacol's results

    McDaniel Overview La Luna: Some of Canacol’s results Colombia September 2012 - Well 1 : Mono Arana Canacol shale acreage  Well drilled to 9,942 feet MD  760 feet of gross pay in La Luna formation  230 feet of net oil pay, average porosity 14%  Overpressured formation at up to 8146 psia  Flowed

  14. Slide 14: Fracking Colombia's unconventional resources?

    McDaniel Overview Fracking Colombia’s unconventional resources? Colombia 48 Unconventional hydrocarbon blocks ANH deemed unconventional blocks (includes CBM) 11 Active unconventional exploration blocks 1 Active unconventional production block Unconventional hydrocarbon deposits (ANH, Feb 2017) 1 Ava

  15. Slide 15: Environmental oppositions to Colombia's shale development

    McDaniel Overview Environmental oppositions to Colombia’s shale development Colombia Environmental and indigenous concerns Overlap of unconventional concessions with indigenous territories  “Black Line” is area of special protection and indigenous Indigenous Territories peoples affected in this are

  16. Slide 16: Cautionary statements

    McDaniel Overview Cautionary statements Colombia The opinions expressed within this presentation are those of the authors/presenters. No representation or warrant, express or implied, is made by McDaniel as to the certainty or completeness of the information contained in this presentation, and nothi

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