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JANUARY 2012
INVESTOR PRESENTATION
Staying The Course
PMD - TSXV
Forward-looking statement
All monetary amounts in U.S. dollars unless otherwise stated.
This presentation contains certain “forward-looking statements” and “forward-looking information” under applicable Canadian securities laws concerning the business, operations and financial performance and condition of PetroMagdalena Energy Corp. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to estimated production and reserve life of the various oil and gas projects of PetroMagdalena Energy; synergies and financial impact of completed acquisitions; the benefits of the acquisitions and
the development potential of the properties of PetroMagdalena Energy; the future price of oil and natural gas; the estimation of oil and gas reserves; the realization of oil and gas reserve estimates; the timing and amount of estimated future production; costs of production; success of exploration activities; ANH/ Ecopetrol approval of transfer of title and operatorship of joint ventures; and currency exchange rate fluctuations. Except for statements of historical fact relating to the company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as “plan,” “expect,” “project,” “intend,” “believe,” “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of PetroMagdalena Energy and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include changes in market conditions, risks relating to international
operations, fluctuating oil and gas prices and currency exchange rates, changes in project parameters, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the oil and gas industry, failure of plant, equipment or processes to operate as anticipated, acquisitions not being integrated successfully or such integration proving more difficult, time consuming or costly than expected as well as those risk factors discussed or referred to in PetroMagdalena Energy’s public filings with the securities regulatory authorities in the provinces of Canada and available at www.sedar.com. Although PetroMagdalena Energy has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. PetroMagdalena Energy undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements. Statements concerning oil and gas reserve estimates may also be deemed to constitute forward-looking
statements to the extent they involve estimates of the oil and gas that will be encountered if the property is developed. Comparative market information is as of a date prior to the date of this presentation.
Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. The management estimates of resources presented herein are arithmetic sums of multiple estimates of remaining recoverable resources (unrisked), which statistical principles indicate may be misleading as to volumes that may actually be recovered. Readers should give attention to the estimates of individual classes of resources and appreciate the differing probabilities of recovery associated with each class. Estimates of remaining recoverable resources (unrisked) include prospective resources that have not been adjusted for risk based on the chance of discovery or the chance of development and contingent resources that have not been adjusted for risk based on the chance of development. It is not an estimate of volumes that may be recovered. Actual recovery is likely to be less and may be substantially less or zero.
Although PetroMagdalena has closed the acquisitions of its working interests in Carbonera, Catguas, Rio Magdalena, Arrendajo, Yamu, Topoyaco, and Mecaya, it is currently in the process of completing the required approvals from ANH/ Ecopetrol, as applicable, for the formal transfer of title and or operatorship.
2
3
1. Focus on organic cash flow opportunities in our portfolio
2. Enhance netbacks, reduce costs, increase efficiency
3. Exploration success at Cubiro in 2011 now leading to
increased development activity in 2012 in the Llanos Basin
4. Maximizing value from assets in our portfolio – leverage
relationships with strong partners
EXPERIENCED LEADERSHIP
IMPROVING OPERATING CASH FLOW
HIGH POTENTIAL
EXPLORATION ASSETS
DRIVING VALUE
Focus on Value Creation
Goal is to increase production and reserves 3
Diversified portfolio
CATATUMBO Basin •Santa Cruz (1) •Carbonera-La Silla(1)
•Carbonera •Catguas
LLANOS Basin •Cubiro(2)
•Arrendajo
•La Punta •Yamu
PUTUMAYO Basin •Topoyaco •Mecaya
MAGDALENA Basin •Las Quinchas •Rio Magdalena
RED blocks: 2010 ANH E&P
blocks
Agreements subject to ANH or
Ecopetrol approval
(1) Operated by Mompos Oil and
Gas, a wholly owned subsidiary.
(2) Operated by Alange Energy
Corp. a wholly owned subsidiary.
4
Achieved Ongoing
Reduced G&A per boe by 54% Q3 2011 vs 2010 average
Increased Operating Netback by 49% 2011 YTD
(9 months) from FY2010 average
Increased reserves at Cubiro by 86% *
Drilling program at Cubiro O
Exploration at Cubiro O
Spud Yaraqui-1X at Topoyaco – D, August 31, 2011
Farm-out 30% of Santa Cruz
Spud Santa Cruz-1 on November 20, 2011
Farm-out Carbonera and Catguas to YPF **
Sale and/or farm-out of other assets (Cerrito, Dec ‘11) O
5
Achievements Q1 through Q3 2011
* Petrotech report on Cubiro block, September 30, 2011 ** Subject to ANH approval
6
86% increase in 2P reserves at Cubiro
Technical Report dated September 30, 2011:
• Updated 2P reserves at Cubiro to 10.8 mmbls – an increase of 5.0 mmbls,
or 86%, compared to December 2010 report
• Updated 1P reserves at Cubiro to a total of 3.0 mmbls, or 73% increase
compared to December 2010 report
• Oil discoveries at Cubiro demonstrate exploration potential
• Production growth funds ongoing work plan for Cubiro
Cubiro L & M Oil Reserves (Mbbls)
100% Gross Net
Proved Developed
Producing 1,981 1,216 1,119
Proved Undeveloped 2,776 1,734 1,595
Total Proved 4,757 2,950 2,714
Probable 13,076 7,873 7,243
Total 2P 17,833 10,823 9,957
Source: Petrotech Engineering Ltd. report on Cubiro block, September 30, 2011
7
Cubiro 2P Reserves Changes in 2011
Source: Petrotech Technical reports: September 30, 2011, December 31, 2010 and 2009
2,570
5,831 1,123
972
2,079
1,233
1,831
0
2,000
4,000
6,000
8,000
10,000
12,000
Dec 2009ReserveReport
Dec 2010ReserveReport
2011 CubiroProduction& Technical
Revisions
Purchase32% of
Cubiro 'C'
PetirrojoDiscovery
Copa BDiscovery
Copa A SurDiscovery
Mb
bls
September 30, 2011
10,823
Daily Average Production 2010-2011
0
500
1000
1500
2000
2500
3000
3500
4000
4500
Year2010
Q12011
Q22011
Q32011
Q42011
Dec2011 *
bo
ed
Copa A Sur-1
Copa B-1
Petirrojo Field
Yamu
32.13% Cubiro Block Cacquired
Arauco5/ Careto 13H
2010 base wells
PetroMagdalena’s Gross Working Interest
* Daily average for month of December 2011
* Petirrojo 2 & 3 put on production in December. 8
9
• Re-capitalized balance sheet in February 2011 through equity financing
• Reduced debt by $31 million to $10 million, freeing up $1.0 million
per month of operating cash flow to fund capital investments in core
assets; working capital deficit reduced by $44 million since
December 31, 2010
• Enhancing operating netback from Cubiro production
• New oil marketing contract in conjunction with Pacific Rubiales
• Implementing initiatives to reduce opex
• Cost reductions generating positive trend in G&A per barrel produced
Ne
tba
ck
pe
r
ba
rre
l G
&A
pe
r ba
rrel
Strengthening operating cash flow
$-
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
Q2 - 2010 Q3 - 2010 Q4 - 2010 Q1 - 2011 Q2- 2011 Q3 - 2011
Operating Netback per barrel G&A per barrel
10
Enhancing Cubiro’s netback
• New 3-year conventional oil marketing agreement signed with
Pacific Rubiales effective February 1, 2011
• Three potential delivery points to Colombian pipeline infrastructure
(1) Management estimates, as of November 2011, for Netback per Barrel sold.
(2) Agreement in place – delivery volumes only on availability
(3) Vasconia as of January 12, 2016 priced at WTI + $7.35/bbl
Illustrative summary of potential netbacks from crude oil sales from Cubiro production (1) (US$ per barrel)
Delivery Point / Reference Price Rubiales /
WTI Guaduas /
Vasconia Araguaney /
Vasconia (2)
WTI (Nymex : January 12, 2012) $99.10 $99.10 $99.10
Benchmark Quality Adjustment +8.00 +7.35 (3) +7.35 (3)
Royalties (7.00) (7.00) (7.00)
Net Revenue $100.10 $99.45 $99.45
Production costs (Q3 - 2011) 14.50 14.50 14.50
Transportation & pipeline 16.50 22.50 10.00
Operating Netback $69.10 $62.45 $74.95
Property Work Program 2011(1) Approximate timing
Exploration Plan
Cubiro • 4 wells(2 Block B, 2 Block C) • 3 drilled, 3 discoveries
(Yopo-1X discovery well) • Yopo well, Q4-2011
Arrendajo • 1 well (Azor -1X discovery well) • Azor-1X, TD on Jan 5th 2012
La Punta • 1 well (LP-4 dry) • LP-4 drilled, Q2-2011
Topoyaco • 1 well (Yaraqui-1X . . . non commercial)
• Yaraqui-1X, Q4-2011
Santa Cruz • 1 well • Spud Nov. 20th, 2011 - drilling
Development Plan
Cubiro • 4 wells + 1 WO + facilities, including storage
• 2 wells completed in Q1-2011 • Petirrojo-3 dev well in Q4-2011 • Petirrojo-2 dev well in Q4-2011 • 1 WO in Q4-2011
11 (1) Management estimate, subject to change
Estimated 2011 capital investment: $41 million(1)
2011 Work Program
12
2012 Work Program Overview
2012 Work Program Overview
• Capital expenditure program estimated at $50 to $60 million, excluding
commitments funded by farm-ins (Carbonera, Catguas).
• 65% to be directed to light oil exploration and development in Cubiro and
Arrendajo.
• 6 Llanos exploration wells planned, 4 in Q1, 1 in Q2, and 1 Q4.
• 10 Llanos development wells planned, 1 in Q1, 3 in each subsequent.
• 2012 Llanos exploration program:
Management estimate of light oil recoverable prospective resources,
company’s working interest share would be close to doubling 2P Llanos
reserves Un-Risked or approximately + 40% Risked
• Capital intended to be funded from cash and internally generated cash flow.
• No near term financing expected to be required to fund 2012 work plan.
• Cash flow estimate for 2012 includes no production volumes for any of the
exploration wells currently being drilled or to be drilled in 2012.
Property Work Program 2012(1) Approximate timing - 2012
Exploration Drilling
Cubiro • 4 wells in Area ‘B’ • 1 well in Area ‘C’ • 1 contingent wells ( Area ‘C’)
• 4 in Q1, 1 Q2, 1 Q4
Arrendajo • 1 well (Arrendajo Norte-1X) • 1 well in Q1-2012
Carbonera • 1 well • 1 well in TD in Q2-2012
Development Drilling
Cubiro • 7 wells
• 3 contingent wells
• 1 well spud in Q1-2012
• 3 wells each subsequent qtr.
13
(1) Management Estimate, subject to change
Estimated 2012 capital investment: $50 million - $60 million (1)
2012 Work Program
14
(1) Management estimate, 2012E calculated with an $80/bbl WTI pricing.
(2) Represents estimated revenues less royalties, production and transportation/pipeline costs based upon average daily
production of 2,800 boed for 2011E and 4,500 boed (mid-point of management guidance range)for 2012E.
(3) Includes interest of $3M and funds being set aside from cash flow for principal repayments of senior notes in May 2012 and
May 2013. The 2012E amount is net of $4M in a trust account as of December 2011 to be used toward the first annual principal
repayment in May 2012 of the senior notes (TSX-V: PMD.DB).
(4) Management estimate; subject to change.
2011E 2012E
Average daily production for the year (gross before royalties)(4) 2,800 boed
4,300-4,700 boed
Cash flow from operating netbacks (2) $58M $82M
Less: G&A $15M $16M
Less: Debt service (principal & interest) (3) $18M $20M
Less: Equity tax instalments $2M $ 2M
Net cash flow from operations $23M $44M
Cash position, beginning of year $6M $15M
Cash available from equity financing for work
program $35M -
Other sources/ (uses), including working capital changes and cash from asset dispositions (4) $(8M) $ 7M
Total cash available to fund annual work program $56M $66M
Annual work program expenditures (4) $41M $50-$60M
Annual Cash Flow (1)
15
Operator: Alange Energy Corp. (1)
WI: A:60.5% B:70% C:57.13% Contract: ANH Product: L/M Oil Area: 61,295 acres 2P Reserves: 10.8 MMbbl (2)
Production: 2010 A (Year Avg): 1,905 bopd 2011 A (Year Avg): 2,138 bopd
Llanos Basin – Cubiro
(1) A wholly owned subsidiary of PetroMagdalena
(2) Petrotech Report dated Sept. 30, 2011, PetroMagdalena share, gross before royalties
About Cubiro
• Most prolific hydrocarbon basin in Colombia
• Currently producing from 21 wells in the Careto, Arauco, Barranquerro, Petirrojo, Yopo and Copa fields
• 86% increase in 2P reserves (Sept 2011 vs Dec 2010) (2)
• 2011 Exploration program with four discoveries: Petirrojo, Copa B, Copa AS and Yopo.
• Sept 30th 2011 update from three discoveries with 5.1 MMbbl of recoverable reserves (2P) (2)
16
Llanos Basin - Cubiro
Polygon A :
Development Area
60.5% W.I.
Polygon B :
Exploration Area
70% W.I.
Polygon C :
Exploration Area
57.13% W.I.
Field Prospect
C5 37 °API
Palmarito C7 40 °API
Caño Gandul C5-C7 38 °API
Careto
Arauco Sirenas
Guanapalo C7 30 °API
Barranquero Petirrojo
Altair
Copa
C7
Canario Sirenas Sur
Turpial Q1 -2012
Tijereto Sur Q1-2012
Yopo, Q4-2011
Petirrojo Sur Q2 - 2012
Copa B
Copa A Sur
Jordán C7 29 °API
Copa C, Q1-2012
Highlights
• Operated by PetroMagdalena
• All production is subject to the sliding scale royalty rates of ANH and a 3% overriding royalty on total production from the Block.
• The Cubiro Block has been under an Exploration and Production (E&P)
Contract with ANH since October 8, 2004, exploration phases followed by a 25 year production period.
• Currently, there are eight producing oil fields: Careto, Arauco, Barranquero, Petirrojo, Yopo, Copa, Copa B and Copa A Sur.
• Currently producing from Carbonera C-5, C-7 and Gacheta formations.
• Four new fields discovered at Petirrojo, Copa B, Copa A Sur and Yopo in 2011.
Copa A Norte Q4-2012
Cernicalo Q1-2012
17
Petirrojo Field, Petirrojo South & Yopo Prospects
• Yopo discovery well spud on December 11th, 2011, and drilled to a final depth of 6,790 feet (MD). The well initially tested at
a stabilized rate of 970 bopd with 4.7% BS&W for 6.5 hours at an average wellhead pressure of 385 psi.
• Petirrojo-1 encountered 32 ft of net pay with porosities averaging 29%.
• Petirrojo-2 encountered 31 ft of net pay
with porosities averaging 29%.
• Petirrojo-3ST encountered 29 ft of net pay with porosities averaging 29%.
• Petirrojo South will be drilled when civil work has been completed, Q2-2012
(1) Company share, Sept 30, 2011 technical report
1 Km
Yopo Field
Petirrojo Field
Petirrojo-1
Carbonera C7 TWT Seismic Map
Petirrojo South Prospect
2P RESERVES
(Mbbls)
Petirrojo 2,036
CURRENT TECHNICAL REPORT (1)
2P Reserves
(Mbbls)
Copa B 1,230
Copa A Sur 1,831
CURRENT TECHNICAL REPORT (1)
Copa B Field, Copa A Sur & Copa AN Prospects
• Copa B-1 exploration well encountered 41 ft of net pay. Daily average production during October has averaged 765 bopd (Company share 437 bopd). ESP stopped
working October 20th; the well went back on production Nov 9th .
• Copa A Sur-1 exploration well successfully drilled with Initial 4-day test rate of 1,114 bopd (Company share, 636 bopd) of 38.4° API light oil on natural flow.
• Copa A Sur-1 went on production Nov 6th .
• The Copa C structure to the south of Copa B will be drilled in Q1-2012
Carbonera C7 TWT Seismic Map
Copa B Field
Copa B -1
Copa ASur Field
1 Km
Copa AN Prospect
(1) Company share, September 30, 2011 technical report
Copa ASur-1
18
Cubiro ‘C’ Area – Copa Upside
19
2P RESERVES
(Mbbls) 100% Gross Net
Copa Field 3,008 1,718 1,582
Copa A Sur 3,205 1,831 1,684
Copa B 2,153 1,230 1,142
8,366 4,779 4,408
Sept 30, 2011 Technical Report
Copa Field
Copa A Norte
Copa A Sur
Copa B
Copa C
Copa D
Producing
Exploration 2012 Development
Carbonera C7 TWT Seismic Map
20
Highlights
• Arrendajo is 7 km NE of the Cubiro block
• Operated by Pacific Rubiales Energy
• 120 km2 of 3D survey completed in April 2011, interpretation shows 6 light oil prospects on trend with producing oil fields
• Azor discovery in Jan. 2012 will be followed by the Arrendajo Norte-1X in Q1 2012.
• Five exploration prospects in the Carbonera formation have been identified: Yaguazo, Arrendajo Norte, Arrendajo Sur, Mirla Blanca, and Mirla Oeste
• PetroMagdalena acquiring 32.5% working interest in December, 2011, from Pacific Rubiales, subject to ANH approval, for $10 million to be paid out of production.
Llanos Basin – Arrendajo
ARRENDAJO
(1) A wholly owned subsidiary of Pacific Rubiales Energy.
(2) Petrotech Engineering report April 2010, adjusted for the 32.5% interest being acquired from Pacific Rubiales.
Operator: Pacific Stratus Energy Colombia (1)
WI: 67.5% Contract: subject to ANH approval Product: Light Oil Area: 78,102 acres Resources: 8,259 Mbbl (2)
Stage: Exploration
CUBIRO
Arrendajo Norte Q1-2012
Yaguazo
Mirla Oeste
Azor Q4-2011
Arrendajo Sur
Mirla Blanca
Mirla Negra
Arrendajo Block Azor discovery - Upside
Producing Exploration 2012 Exploration 2013 Development
Arrendajo Norte
Yaguazo
Azor
Mirla Negra
Carbonera C7 TWT Seismic Map
• Azor discovery well spud on December
24th, 2011, and drilled to a final depth
of 7,225 feet (MD). The well initially
tested 752 bopd with a 1% BS&W over
an initial 8 hour period of natural flow.
• Arrendajo-1X will be drilled after testing
and completion is completed on Azor,
civil work has been completed.
• 3D seismic evaluation identified four
new prospects on the Azor trend.
• Mirla Negra-1X was drilled in 2008 and
tested oil in the C5 but was not
declared commercial
21
22
Topoyaco & Mecaya Contracts: ANH
Operator: Topoyaco – Pacific Rubiales
WI: 50%, subject to ANH approval Mecaya – Gran Tierra WI: 42%, subject to ANH approval Product: L/M oil exploration potential Production: Nil
About Putumayo
• Putumayo Basin is located in southwest Colombia
• High potential exploration targets
Highlights
• Partnered with experienced operators.
• PetroMagdalena has a beneficial 43% working interest in the Mecaya Block, subject to ANH approval, with no overrriding royalty and will pay 85% of the cost of the first 3D and well.
• PetroMagdalena Energy has a 50% working interest in the Topoyaco Block, subject to the ANH approval, with a 6% overriding royalty to Trayectoria. In addition, there is a 3.5% profit interest payable to Grant Geophysical for the seismic work.
Putumayo Basin
VENEZUELA
Carbonera Block
Santacruz Block
Carbonera La Silla
Catguas Block
About Catatumbo
• Catatumbo Basin is located in northwest Colombia and is the western extension of the very prolific Maracaibo basin in Venezuela
• High potential exploration targets
Highlights
• Partnered with experienced operators.
• PetroMagdalena has a beneficial 100% working interest in the Carbonera Block, subject to ANH approval.
• PetroMagdalena has a 70% working
interest in the Santa Cruz Block, and is drilling the Santa Cruz-1X well.
• PetroMagdalena has a 58% working interest in the Carbonera La Silla Block, an Ecopetrol association contract.
• PetroMagdalena has a beneficial 50%
working interest in the northern area of Catguas and a beneficial 15% working interest in the southern area. Gran Tierra is the operator.
Catatumbo Basin
Catguas, Santa Cruz and Carbonera Contracts: ANH
Operator: Catguas – Solana (1)
WI: 50% N, 15% S, subject to ANH approval Santa Cruz – Mompos Oil and Gas (2)
WI: 70% Carbonera – Well Logging WI: 100%, subject to ANH approval
Product: L/M oil exploration potential Production: Nil
(1) Wholly owned Subsidiary of Gran Tierra Energy
(2) Wholly owned subsidiary of PetroMagdalena. 23
24
Maximize Value From Catatumbo Assets
Actions Taken
Farm Out Agreement for Santa Cruz:
• Retain Operatorship
• Retain 70% Working Interest
• Pay 40% of first well in Q4 – 2011, 55% of second well, 70% thereafter
Farm Out Agreement for Carbonera(1):
• YPF becomes Operator, bring extensive gas experience
• Retain 40% Working Interest
• Carried through US$23 million work program
Farm Out Agreement for Catguas:
• YPF will lead exploration program
• Retain working interests of 15% in North area and 4.5% in South area
• Carried through 2012 work program
(1) Farm Out Agreement for Carbonera in process and subject to ANH approval
25
• Santa Cruz-1 is being drilled, and
spud on Nov. 20th, 2011, in the A
Block which has an area of 750
acres with a primary target (Mirador)
thickness of over 300 ft of high
porosity & permeability SS reservoir.
• The Santa Cruz Block has several
faulted structures assigned
prospective resources based on the
3D seismic interpretations and
information from the offset Rio Zulia
field
• A contingent exploration location
has been identified in the C Block to
the north of the Santa Cruz-1X well.
Catatumbo Basin – Santa Cruz-1
Operator: Mompos Oil and Gas (1)
WI: 70%
C: 700
acres
Total of
3480 acres
F: 420
acres
E: 580
acres
D: 230
acres
A: 750
acres
B: 800
acres
Santa Cruz – 1, TD Q1 - 2012
Santa Cruz – 2, TD Q1 - 2013
26
Cash position (December 31st , 2011): $15.0 million
Debt (December 31st , 2011):
Factoring Loan (maturing Oct 2012)
Bank term loans (maturing May/ Aug 2013)
9% Senior Notes ( $10.4MM maturing May 2014)
$5.1 million
$6.6 million
CA$31.1 million
Share price (January 16, 2011): CA$1.08
Shares outstanding: 142.3 million
Options outstanding ($2.17 average)
Warrants outstanding ($3.50)
13.5 million
19.0 million
Fully diluted: 174.8 million
Market capitalization - undiluted (January 16, 2011): CA$153.7 million
Capitalization
27
Leadership team
Luciano Biondi
Chief Executive Officer
Gregg K. Vernon, P.Eng
Chief Operating Officer
Michael Davies, C.A.
Chief Financial Officer
Francisco Bustillos, M.Sc.
Colombian Finance &
Administration Manager
Jesus Aboud
Exploration Manager
Peter Volk, LL.B.
General Counsel & Secretary
Management
Jaime Perez Branger
Executive Chairman
Miguel de la Campa
Serafino Iacono
Ian Mann
Robert Metcalfe
Luis Miguel Morelli
Directors
Appendix
28
Assets in the most prolific basins
Area Operator (1)
Gross Acres WI (3)
Contract Stage Product Status
Llanos Basin
Cubiro PMD
61,295 60.5-70-57.13% ANH E&P Light Oil Core Asset
Arrendajo Pacific Stratus 78,102 67.5% ANH Exploration Light Oil Near Cubiro*
La Punta Vetra 19,313 Up to 6% ECP E&P Light Oil Under review
Yamu WOGSA 18,194 10% ANH Prod & Exp Light Oil Producing
Catatumbo Basin
Carbonera Well Logging 63,727 100% ANH E&P Oil & Gas Farm-Out
Catguas Gran Tierra 330,355 15% / 50%
S N (2) ANH Exploration Oil & Gas Farm-Out
Santa Cruz Mompos 40,058 70% ANH Exploration Light Oil Exploration
Carbonera – La
Silla Mompos 12,558 58% ECP E&P Light Oil
3D seismic work plan
in place
Magdalena Basin
Las Quinchas Pacific Stratus 124,493 24.5% ECP E&P H Oil To Be Sold
Rio Magdalena Gran Tierra 36,156 56% ECP E&P Gas/Cond/
Oil JV or Farm-Out
Putumayo Basin
Topoyaco Trayectoria 60,035 50% ANH Exploration L/M Oil Under Review
Mecaya Gran Tierra 74,128 43% ANH Exploration L/M Oil 3D seismic planned
(1) See Slide 2. (2) After Farm Out WI retained is 4.5% S/15% N. (3) Subject to ANH /ECOPETROL approvals.
* Working interest reflects acquisition of PRE’s 32%, subject to ANH approval. Yellow background = Core portfolio assets 29
Well name 2012
Quarter
Cubiro Block
Cernicalo-2 1
Tijereto Sur-1X 1
Copa C-1X 1
Turpial-1X 1
Petirrojo Sur-1X 2
Copa A Norte-1X 4
Arrendajo Block
Arrendajo Norte-1X 1
Carbonera Block
San Roque-1X 1
Santa Cruz Block
Santa Cruz-2X 4
2012 Exploration Program
Exploration overview 2012
• 6 exploration wells planned for Cubiro
• 1 exploration well for Arrendajo
• 1 exploration well for Carbonera
30
31
VSM 12
VMM 35
COR 33
VSM 13
LLA 41 VMM 11
MIDDLE MAGDALENA VALLEY BASIN
CORDILLERA BASIN
UPPER MAGDALENA VALLEY BASIN
LLANOS BASIN
2010 ANH Bid Round
Six E&P Assets
• Agreement for funding the
exploration commitment,
resulting in PetroMagdalena
holding a 10% Working Interest.
32
Colombian Pipeline Infrastructure