Colombia’s Largest Independent Natural Gas Producer 3 Conventional Natural Gas In Colombia 1. Focused • Conventional natural gas pure play focused in Colombia 2. Leader • Largest supplier to the Caribbean Coast and largest…
Canacol’s Special Natural Gas Operating Model 4 Canacol’s supply ~25% of Colombia gas Country gas demand ~ 1 BCF / +2-3% per yr. Gas supply, x-Canacol Declining ~12% / yr. Market Leader The largest independent natural gas producer…
Special Opportunity In Solving Colombia’s Natural Gas Supply Deficit Bogota Medellin Cartagena Barranquilla Caribbean Sea Hocol Frontera Chevron fields 60 km Canacol gas blocks Promigas line expansion Existing gas pipelines…
16 70 81 113 315 \'12 \'16 \'17 \'18 \'19e \'22e 215 Average annualized natural gas sales Aug ‘19 In MMcf/d ‘23e ‘12 Acquired Shona Energy • 80 km pipeline ? Cerromatoso nickel mine ‘16 Promigas-funded 190 km pipeline ‘17…
2019 Capital Plan $119 MM (1) Pre-operative seismic, workover, trailing, social, and other costs 3D seismic $16 Other $23 Facilities expansion & equipment $30 6 exploration & appraisal + 2 development wells $50 (1) 8 $ in…
Industry-Leading Exploration Success Utilizing AVO 1 KM Uncalibrated 3D Calibrated 3D for AVO analysis Arandala-1 Carambolo-1 AVO extraction over Porquero formation Includes pay in ft. TVD Discovery Prospect Nuez-1 Datil-1…
Expanding Canacol’s Gas Resource Runway Canacol-gas \'12 - \'13 \'14 - \'16 \'17 - \'18 CAGR Blocks 2 4 5 14% Net acres (in 000s) 85 725 1,100 44% Gross resources (in TCF)(1) 0.1 2.0 2.6 59% Prospects & leads 7 44 140 49% History of…
2019 8 wells • 4 wins (Palmer-2, Nelson-7, Acordeon-1, Ocarina-1) • 3 remaining wells 2019-2021 Acquire 3D seismic • VIM 5, VIM 19, SSJN 7 2020+ Exploratory drilling on new 3D seismic
2Q ‘19 Financial Highlights Key data Revenues $47.7 MM EBITDAX $36.8 MM +9% y/y 77% margin Funds from operations $25.6 MM Working capital surplus $47.1 MM Cash $28.7 MM 26% reduction in OPEX From $0.42 ? $0.31 / Mcf(2) 20%…
Canacol’s Financial Policy Return-focused, LT value from free cash flow • Debt reduction • Potential future dividend • Up to 14.1 MM share buyback in place Conservative financial profile • < 2.5x consolidated leverage ratio –…
US $ in MM, except CDN $/share TSX $/share (9/9/19) CDN $4.67 FD shares outstanding(3) 180 Market capitalization(4) $ 639 Net debt(5) $ 345 Enterprise value $ 985 Insider ownership 22% (1) Includes in-the-money options based on CDN…
Natural Gas Is The Future • Natural gas is a clean, efficient and competitive energy source. Its use helps to improve air quality in cities and reduce greenhouse gas emissions. • Natural gas will lead Colombia\'s development of…
APPENDIX Drill Clarinete Appraisal Well In in 3Q ‘19 Clarinete-4: for potential reserve additions, investigate resource potential in up-dip Blue and Basal SS zones • Depth 8,560 ft. MD (7,626 ft. TVD) • D&A cost $4.2 MM • The point…
Drill Lantana-1 Well In 4Q ‘19 Lantana-1 Bottom hole location structurally updip from offset locations by up to 200 ft. • Surface location Canahuate-1 pad • Depth 7,749 ft. MD (5,623 ft. TVD) • DC&C $5.0 MM Objective: Test the…
APPENDIX Arandala-1 Exploration Well In 4Q ‘19 1 KM Fluid Factor at Middle Porquero SSA (1) Pay in feet TVD 1 km Fluid Factor at Middle Porquero SSA Arandala-1 • Adjacent fault block to Breva-1 discovery • 3 km tie-back to Betania…
APPENDIX Managing Risks 21 Macro Risks 1. Geopolitical • Market/sector-friendly Colombia President for the next 3 yrs. 2. Regulatory • South America’s most stable democracy and regulatory framework 3. Commodity • Near zero…
APPENDIX Corporate Social Responsibility 14 Fundación Entretejiendo is born from our interest to improve the life quality of the communities in our areas of influence Projects ‘18-’19 Investment US$3.1MM 44%CNE 56% Allied 1 Gas…
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