Corporate Presentation€¦ · Corporate Presentation June 2020. Best in Class Assets & Management •Large exploration resource inventory ... •April –June: max 20% of volumes

Corporate Presentation

June 2020

Best in Class Assets & Management

• Large exploration resource inventory

• Experienced, focused executive and technical

teams

• Track record of exploration and development

success

• Growing reserves, production, and cash flow

Sustainability

• Supplying the growing demand for clean-

burning gas in Colombia

• Safe and reliable operations

• Culture of innovation and corporate social

responsibility

• Targeting best-in-class ESG performance

Financial Strength & Discipline

• Strong balance sheet; low leverage

• Long-term fixed-price take-or-pay sales

contract

• Low costs and high margins with growing

economics of scale

• Returns focused capital allocation, dividend,

and share buy-back

2020 Investor Presentation | 2

Why Canacol

Colombia’s Largest Independent Natural Gas Producer

1. As at March 31, 2020.2. As at May 29, 2020.3. Converted from CDN → USD exchange rate (0.7) as of May 29, 2020.4. As at March 31, 2020.5. Working Interest reserves per the independent reserve report prepared by Boury Global Energy Consultants (“Boury”) effective Dec. 31, 2019. Reserves Life Index based on annualized fourth quarter 2019 conventional natural gas production of 180,986 Mcfpd.

6. Represents gross mean prospective resources for conventional natural gas per the report prepared by Gaffney Cline & Associates, effective Dec 2019.

Canacol at a Glance

Prospective Resources (bcf) 6

Unrisked Risked

Gross Mean Resources 4,669 1,378

Gas Reserves (bcf) 5 1P 2P

Gross Reserves 394 624

After-Tax NPV10 (US$MM) $1,033 $1,583

Reserves Life Index 6.0 9.4

South America

Colombia


Basic Shares O/S (MM) 1 180.9

Share Price (C$) 2 $3.84

Market Cap (US$MM) 3 $507

Net Debt (US$MM) 4 $334

Enterprise Value (US$MM) $841

Quarterly Divendend (C$/sh) $0.052

Annual Yield (%) 2 5.4%

OTCQX : CNNEFBVC : CNE.C TSX : CNE

A Large and Growing Economy

1) Source: World Bank, PPP is Purchasing Power Parity.2) Source: UPME January 2020, Medium Demand Forecast Scenario.

0

400

800

1.200

1.600

1999 2004 2009 2014 2019 2024 2029

History Forecast

0

200

400

600

800

2000 2003 2006 2009 2012 2015 2018

• Stable Democracy, Political and Regulatory Environment

• Invited to join OECD in 2018

Why Colombia

Growing Gas Demand (bcf/d)2

(GDP, US$ bn PPP)1


0%

2%

4%

6%

8%

10%

12%

14%

0

2

4

6

2012 2013 2014 2015 2016 2017 2018 2019

(1) Source: Agencia Nacional de Hidrocarburos.

Canacol Proved Reserves (as % of Colombia)

Colombia Proved Reserves

Meeting Colombia’s Natural Gas Demand

Colombia’s historic gas supply glut ended as Canacol entered the gas business

Colombia national proved reserves declining at 7% per year

Canacol’s comparable proved reservesgrowing at CAGR: 33%

Colombia’s Proved Reserves (TCF)1


• Sources: UPME, January 2020 Technical Study for the Natural Gas Supply Plan (Supply scenario 2 excluding import projections; Medium Demand Projection, excluding assessment of potential demand additions caused by El Nino events).

• Canacol planned sales includes only expected capacity expansions as outlined in this presentation.

Demand

Supply

Canacol

Solving Colombia’s Looming Natural Gas Supply Deficit

• Gas Demand in Colombia increasing 3% per

year for the last 10 yrs.

• Colombia’s largest state operated fields are

over 40 years old and declining at rates of

up to 20 % per year.

Colombia Gas Supply / Demand vs

Canacol planned Sales

(MMcf/d)


-

500

1.000

1.500

2019 2020 2021 2022 2023 2024 2025 2026

Climate Change:

• Colombia plans to use more gas to meet its Paris

Agreement CO2 Emission Target: 20% ↓ by 2050

• Gas produces 50% less CO2 than Coal and 30% less

than Oil1

Air Pollution:

• One of the biggest health problems in Colombia costing

1.93% of GDP1

• Solution with near to ZERO smog-causing pollutants:

GAS

Renewables:

• Colombia’s goal: 20% of electricity from renewables by

2030

• Gas will continue to provide backup power generation

well beyond 2030, replacing coal and petroleum for

electrical power generation

(1)Naturgas 2019 Annual report.(2)Source: UPME Plan Energetico Nacional, February 2020. Scenario “Nuevas Apuestas”, which refers to a scenario within the

national energy plan in which CO2 emissions are reduced by 30% from a Business As Usual scenario. The other scenarios in the study anticipate as much or more gas demand as the scenario shown.

Energy Demand Projections (PJ)2


Gas is the cleanest alternative

Colombia plans to use a lot more gas in its transition to renewables

17% 16% 15% 9%

22% 22% 21%21%

11% 10% 9%7%

23% 23% 22%20%

9% 12% 21%30%

18% 22%

29%45%

0

500

1.000

1.500

2.000

2020 2030 2040 2050

Gasoline Diesel Coal Other Natural Gas Electricity


Covid-19 Outlook & Guidance Update

Colombia’s mandatory lockdown:

March 26 – April 27:

• Industrial, construction, and commercial demand

for gas decrease significantly

• No interruptible gas sales in April

After April 27:

Return of most manufacturing and construction activities

Canacol’s Take or Pay Contracts:

• No Force Majeure

• No defaults

• April – June: max 20% of volumes can be delivered

in 2H 2020

• Contractual downtime shall be taken in April and

May

June 15:

Country wide shutdown scheduled to be lifted completely for all sectors

Interruptible demand expected to continue to

increase and stabilize through the summer months

of July and August 2020

Revised Plan:

Guidance 170 – 197 MMscf/d

Capex US$108 million

Maintenance & Development Drilling

Exploration Wells & Seismic

Facilities & Infrastructure

Admin, ESG, & Other

$1

08

MM

Gas Sales197 mmcfd - If interruptible demand recovers in July170 mmcfd - If interruptible demand does not recover

Drill 9 wells5 exploration1 appraisal3 development

Execute agreements to construct new gas pipeline to Medellin

ESG Further investment in processes to monitor, report, and improve

Free Cash Flow to support dividends, share buy-back, and debt reduction

Budget 2020


2020 Revised Plan

$32

$35 $26

$15

2013 2014 2015 2016 2017 2018 2019 2020E 2024E

Track Record of Growing Gas Sales

Sales (MMscfd)

v


>330

143

817020

2516

113

2020 Guidance:

197 MMcf/d – with interruptible demand reactivating

170 MMcf/d – withoutinterruptible demand reactivating

• ~80% fixed price uninterruptible

162 MMcf/d

Take or pay Contracts

Priced in US$ at the wellhead

Prices escalate ~ 2% per year

Contract term range 1-10 yrs

• ~20% of sales under interruptible contracts / spot market

• Historic crude oil sales are shown converted to MMcf/d equivalent using 5.7:1 energy equivalency conversion from bbls/d.

• Numbers shown on chart are for gas sales only, including CAGR of 42%, based on growth from 16 MMcf/d in calendar year 2013 to 184 MMcf/d (mid-point of guidance) in 2020.

170-

197

Natural Gas Crude Oil

Discoveries

Production

Technical Revisions

• Gas Reserves evolution is as per NI 51-101 annual disclosures for reserves reconciliation, as reported in our Annual Information Forms on SEDAR. • From December 31, 2015 onwards, Canacol changed its fiscal year-end from June 30 to December 31.• CAGR calculation is based on growth from 95 bcf as at June 2013 to 624 bcf as at December 2019.

Steady Reserves Additions Underpin Plans For Future Production Growth

95113

372

411

505

559

624

696 bcf added through discoveries

and technical revisions since 2012

2P Working Interest Gas Reserves (bcf)


Jun2013

Jun2014

Dec2015

Dec2016

Dec2017

Dec2018

Dec2019

324

405

639 651

783 785

1.033

482

638

873945

1.1361.083

1.583

$0

$500

$1.000

$1.500

Jun 2013 Jun 2014 Dec 2015 Dec 2016 Dec 2017 Dec 2018 Dec 2019

Reserves Growth and Efficient Development Drives Growing Reserves Value

1P 2P

2P FD&A Costs (US$/Mcf)1

1-Year $0.87

3-Year $0.67

2P Recycle Ratios1

1-Year 4.4x

3-Year 5.7x

Estimates of the net present value of the future net revenue from reserves do not represent the fair market value of reserves. The estimates of reserves and future net revenue from individual properties or wells may not reflect the same confidence level as estimates of reserves and future net revenue for all properties and wells, due to the effects of aggregation.A full description of the calculation of FD&A costs and Recycle Ratios is provided in our press release dated February 19, 2020.• From December 31, 2015 onwards, Canacol changed its fiscal year-end from June 30 to December 31.• After-tax NPV10 estimates are as per NI 51-101 annual disclosures in our Annual Information Forms. Corporate Total Values.• CAGR calculation is based on growth from values as at June 2013 to values as at December 2019.

After-Tax NPV10 (US$MM)


Driving Value

For 2020, ~ 80% of 205 mmcfd sales guidance is on long-term fixed Price take or pay contracts.

Canacol’s sales and transportation contracts create barriers to entry for potential competitors in the Colombian gas market.

(1) Canacol (CNE) Realized Price is Net of Transportation Costs.

Long-Term Supply Shortage = High and Stable Gas Prices

Realized Gas Price History (US$/Mcf)1

Volatility of Quarterly Average Prices


$0

$1

$2

$3

$4

$5

$6

Q1/15 Q1/16 Q1/17 Q1/18 Q1/19 Q1/20

CNE Realized Price Henry Hub AECO0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

CNE Realized Price WTI Henry Hub AECO

LNG Context

Historical prices of US LNG exports to Colombia before transport & regas(1):

Stranded volumes of gas under current global situation:

• Low landing prices of LNG, below cost

• Short term prices could be low while cargoes not taken by global take or pay contracts can be dumped in Colombia

1. EIA Independent Statistics & Analysis2. UPME "Plan de Abastecimiento de Gas Natural, Enero 2020". BMO Report, "Monthly North American LNG Update, April 2020“3. EIA Short Term Energy Outlook, May 2020, and CME Group.


Canacol’s strong position:

• 90% of SPEC’s capacity can be consumed onlyby thermal generators / partners of the project

• Canacol reaches additional clients in theinterruptible market

• Our take or pay volumes are un-affected

Expected LNG higher future prices due to:

• Production of US associated gas declines with lower oil production

• Normalization of demand from LNG off-takers with long term volume obligations

• Long term landing LNG prices in the range of US$6.0 - $7.0(2), assuming Henry Hub of US$2.0

2H 2019 Jan-20 Feb-20

5.67$ 5.18$ 5.37$

Henry Hub Gas Price Forecast ($US/MBTU)1

Avg. 2H’20E: US$2.41 / MBTU

Avg. 2021E: US$2.89 / MBTU

El Tesorito 200 MW Power Plant

- Consortium: Celsia, Proelectrica, Canacol (10%)

- Operator: Celsia

- 7 kms south of Canacol’s producing facilities

- Estimated gas consumption 30 MMscf/d

- Celsia’s estimated start-up date: December 2021*

- Firm Energy Obligation “OEF”: December 2022* Subject to revision due to Covid-19

New Pipeline Jobo-Medellin 190 km

- Capacity 100 MMscf/d

Project Status:

- Negotiated sales contract with major utlity in Medellin, awaitingfor signature

- Currently selecting EPC contractor

- Negotiating Financing

- Estimated date: modelling 2H 2024*

* Subject to revision depending on closing: sales contract, EPC contractor and

financing.

Opportunity for additional transportation capacity inJobo – Cartagena – Barranquilla Pipeline

- ~ 25 MMscf/d gradually available between 2020 -2022

- This capacity may result in additional sales for Canacol if interruptible market demand is strong 2020 Investor Presentation | 15

Future Growth Projects

(1) Gross mean un-risked and risked prospective resources for conventional natural gas report prepared by Gaffney Cline & Associates, effective Dec 2019. (2) Track record reflects drilling success over period 2014 to 2020.

Continue Utilizing Best-in-Class Technology and Expertise to De-Risk Large Resource Potential

Large resource base


Positioned for Growth

Prospective resources (Tcf)(1)

Un-risked 4.7

Risked 1.4

Track record(2)

Exploration/appraisal wells 20/24 (83%)

Development wells 9/9 (100%)

Total wells 29/33 (88%)

LowerMagdalena

ValleyBasin

Middle Magdalena

ValleyBasin

0 25 50 75 10012.5

Kilometers

Legend

Canacol Gas Fields

Canacol Gas Blocks

Land (Gas)

Blocks 8

Net acres 1.4 MM

• Target: maintain 2P reserves life >8 years

• With >80% exploration drilling success, our resource appears tobehave like unconventional gas resources

• Conveyor belt strategy to steadily convert resources to reserves

• No need for large upfront investment in drilling to achieve a longerreserves life index

VMM 2

VMM 3VMM 45

VMM 49

VIM 33

VIM 5

SSJN 7VIM 19

Esperanza

VIM 21

*Amplitude Versus Offset analysis of 3D seismic data underpins conventional drilling success

Includes pay in ft. TVD

Drilling success rate using AVO = 92% (22 of 24)1

(1) Corporate average success rate of 83% includes wells drilled without AVO.

Discovery

ProspectArandala-1

30 ft.

Carambolo-1

Nuez-1

Datil-1

Cacahuate-1

Toronja-1

14 ft.Nelson-5

79 ft.

Nelson-6

39 ft.

Breva-1

29 ft.

Uncalibrated 3D Calibrated 3D for AVO analysis


Industry-Leading Exploration Success Utilizing AVO*


2020 Drilling

Rig Well Well Type

Nelson-14 Development

Clarinete-5 Development

Pandereta-8 Development

Pandereta-4 Appraisal

Flauta-1 Exploration

Milano-1 Exploration

Porro Norte-1 Exploration

Fresa-1 Exploration

Piccolo-1 Exploration

Rig 1

Rig 2

• 9 Wells

✓ All 100% Interest and Operated

• Largest Exploration Investment in Canacol’sHistory Still Planned – But Deferred to start later in the year due to COVID-19

!(

!(

!(

!(

!(

!(

!(

!(!(

0 2 4 6 8 101

Kilometers

PORRO NORTE-1

FLAUTA-1

CLARINETE-5

PICCOLO-1

FRESA-1

NELSON-14

MILANO-1

Legend

!( 2020 Drilling Program

Prospects & Leads

Status

Lead

Prospect

3D SEISMIC

VIM5

VIM21

ESPERANZA

Pandereta

Oboe

ClarineteAcordeon

Canahuate

Arandala

Breva

Canandonga

Toronja

NelsonPalmer

Nispero

Trombon

Chirmia

Ocarina

PANDERETA-8

PANDERETA-4

W E L L C L A S S IF IC A T IO N

N e ls o n 14 D e v e lo p m e n t

C la rin e te 5 D e v e lo p m e n t

P a n d e re ta 8 D e v e lo p m e n t

P a n d e re ta 4 A p p ra is a l

F la u ta -1 E x p lo ra tio n

M ila n o -1 E x p lo ra tio n

P o rro N o rte -1 E x p lo ra tio n

F re s a -1 E x p lo ra tio n

P ic c o lo 1 E x p lo ra tio n

(1) Consolidated leverage ratio is the ratio of consolidated total debt, less cash and cash equivalents, to EBITDAX for the preceding 12 months.• Funds from operations is a non-IFRS Please see EBITDA and Funds from Operations disclosure in the forward looking statements located on page 26 of this

presentation.• Assumes average annual gas production of 197 MMcf/d at $4.80/Mcf average wellhead price.

Canacol’s Financial Policy

2020 Free Cash Flow Waterfall US$MM Canacol’s New Quarterly Dividend

• US $28MM per annum

• ~5.4% yield (as of May 29, 2020)

• No plans to reduce dividend

Debt Reduction

• 2.1x consolidated leverage ratio(1) as at Dec 31,

2019

• 1.8x consolidated leverage ratio as at Mar 31, 2020

• 1.3x consolidated leverage ratio estimate: Dec 31,

2020

Share Buy Back

• Approved for up to 14.1MM shares

$265 $30

$40

$1

$80

~$233 ~$30

~$15

~$108

~$80

~$233 ~$30

~$15

~$108

~$80

~197 mmcf/d Scenario – with interrupt sales~170 mmcf/d Scenario – no interrupt sales


~$55

197

mmcfd

197

mmcfd

170

mmcfd

FocusedConventional natural

gas pure play focused in Colombia

LeaderLargest supplier to the Caribbean Coast

and largest independent producer countrywide

Well PositionedOnly active onshore gas operator with the most competitive cost

structure

Significant UpsideWorld class assets with organic

growth opportunities (4.7 TCF of resource upside)

Low Risk – High RewardLong term take or pay contracts (near zero exposure to commodity prices) +

high operating margins

Strong Cash Flow GenerationLow cost operator targeting significant

free cash flowReturn on Capital

Colombia’s Largest Independent Natural Gas Producer


Appendix

Upcoming Drilling Activity

22

Pandereta-8 (Blue-SS2 Depth Structure & Upper-CDO Fluid Factor extraction)

Well objective: Target gas-charged CDO reservoir sandstones supported by AVO methodology 100 ft (TVD) structurally up-dip, and 500 m laterally displaced from Pandereta-2 well.

Pan-2 (Pan-8 Analogue)

Reservoir Cienaga de Oro

Net Pay (Ft. TVD) 130

Porosity (%) 23

Test Rate (MMcf/d) Choke: 20 on 35/64”

Spud Date June 2020

Target depth 9,646 ft. MD

Cost (D&A) $3.9 MM

Pandereta-8 Development Well, VIM 5

Appendix |2

A

B

PAN-4

PAN-8

PAN-5

500 M

Penetration point at Blue-SS2

A B

AVO event

PAN-8

A’

Line PO-1310-2011

A SAN BENITO-1

Porro Norte

Mid Miocene UC

Porro Norte-1

Well objective:Drill 4-way anticline with fault dependent upside to assess presence of gas in multiple stacked targets (CDO /Cicucolimestones, Porquero & Tubara Sandstones) supported by AVO methodology as defined on 2D seismic, 600 ft. structurally up-dip and 1.5 km from Benito-1.

Spud Date Q3 2020

Target depth 12,353 ft. MD

Cost (D&A) $6.1 MM

Line PO-1040-2011

B’

BASEMENT

CIENAGA

Mid Miocene UC

Flauta

BASEMENT

Cicuco

Porro Norte

Mid Miocene UC

TUBARA

B Porro Norte-1

Contours 100’

3 km

San Benito-1

Porro Norte-1

Porro Norte-1 Exploration Well, VIM 5

Appendix | 3


Appendix

Sustainability

- 2 4 6 8 10 12 14 16 18

2017

2018

Annual direct CO2 emissions per unit of production (kg CO2 eq/BOE/d)

Canacol is Emitting 70% less GHGs per unit of production thanColombian oil and gas industry averages1

(1) Based on disclosures from Geopark, Gran Tierra Energy, Parex Resources, Frontera Energy, and Ecopetrol.

Environment - Operating Responsibly

Investing for continued reduction of emissions per unit of production,

Canacol Lat Am Peers Average1

Appendix | 4

(1) 2018 vs 2017on bbl-eq basis. (2) Peer group composed of main Colombian O&G operators.

Environment 2018 vs 2017

CO2 & PM Emissions Reduction

• Replacing Diesel. 90% of energy consumption is gas based.

• Decreased ~25% our total CO2 emissions(1)

Energy

Consumption

• Decreased by nearly 10% the energy intensity of our operations(1)

• Solar Panels installed for well automatization

Water Management & Waste Reduction

• 89% of wastewater recycled

• New initiatives: 34% residue re-utilization

• 0 Spills & Environmental incidents

• 0 fines or sanctions for environmental failures

Biodiversity

• 0 locations with significant impact in biodiversity

• Reforestation ~100 hectares

• Training our communities >800 persons

Peer Comparison

• 83% less energy consumption

• 98% less water consumption

• 70% less GHG emissions

• Greater disclosure of Energy metrics

HSE

Sustainability Highlights

vs Colombian Operators(2) :

Appendix | 5

(1) From 2016 through 2019.((2) 2019.

Social

• > COP $ 61,000 million invested in projects for local communities(1)

• 45% invested in projects with our indigenous communities

• > 40,000 people have benefited

• ~150 projects focused in:

• Improving quality of life of our communities

• Agro projects strengthening local vocation

• Infrastructure and Education programs

• More than 3,200 labor opportunities created(2)

Some of our projects:

• Our star project – Masificación de Gas: we brought natural gas to communities cooking with coal and wood

• >20 Villages

• >14,000 beneficiaries

• Micro-aqueducts powered with solar panels

Governance

• 6 out of 7 board members are independent

• Nearly 40% of our personnel are women

• 29% of our officers are women

Photo: “Masificación de Gas” project bringing gas to communities cooking with Coal and Wood

Sustainability Highlights

Together in Covid-19

• Employees, Canacol & Entretejiendo Foundation together supporting the most vulnerable

• Donations to communities:

• 52,000 beneficiaries

• Bogota:

• Donations to Foundations supporting kids & the eldery

Appendix | 6

2020 Investor Presentation |

Appendix

Financial Performance and Valuation

-$0,10

$0,10

$0,30

Q1/15 Q1/16 Q1/17 Q1/18 Q1/19 Q1/20

FFOPS 12-month average

(1) Funds from operations is a non-IFRS measure used to represent cash flow provided by operating activities before settlement of decommissioning obligations and changes in non-cash working capital.

Appendix: High Margins + Growth = Funds Flow And Share Price Growth

Funds from operation (per f.d. share)1 Relative share price performance

0

1

2

dic-14 dic-15 dic-16 dic-17 dic-18 dic-19

Canacol S&P/TSX Comp. S&P/TSX Capped En. COLCAP

Appendix | 7

(1) Source: Eight Capital, as of May20, 2020, using strip pricing assumptions. Tickers of comparable oil and gas companies shown but not identified are SU, CNQ, IMO, CVE, HSE, OVV, VET, ARX, CPG, WCP, ERF, GPRK, TOG, BIR, PEY, SGY, TAL, BNE, PXT, VII, MEG, FEC, BTE, KEL, NVA, AAV, GTE, TVE, ATH, LXE, PONY, CR, JOY, IPO. Colombian E&P peers highlighted: FEC, GTE, GPRK, PXT.

Top Quartile Growth and Free Cash Flow Yield; No Valuation Premium

2020E CFPS Growth1 2020E EV/DACF1

2020E FCF Yield1 P/NAVPS (2P) 1

CNE; 23%

-120%

-80%

-40%

0%

40%

Colombia E&P Average: -84%

CNE; 12%

-50%

-25%

0%

25%

Colombia E&P Avg: -8%

CNE; 4.3x

0.0.x

5.0.x

10.0.x

15.0.x

20.0.x

Colombia E&P Avg: 9.2x

Appendix | 8

CNE; 59%

0%

50%

100%

150%

200%

Colombia E&P Avg: ~150%

AdvisoriesThis presentation is provided for informational purposes only as of March 2020, is not complete and may not contain certain material information about Canacol Energy Ltd. (“Canacol" or the "Company"), including importantdisclosures and risk factors associated with an investment in Canacol. This presentation does not take into account the particular investment objectives or financial circumstances of any specific person who may receive it and does notconstitute an offer to sell or a solicitation of an offer to buy any security in Canada, the United States or any other jurisdiction. The contents of this presentation have not been approved or disapproved by any securities commission orregulatory authority in Canada, the United Sates or any other jurisdiction, and Canacol expressly disclaims any duty on Canacol to make disclosure or any filings with any securities commission or regulatory authority, beyond thatimposed by applicable laws.

Forward Looking Statements

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 CanacolEnergy Ltd. (“Canacol” or the “Corporation”), are forward-looking statements that involve various risks, assumptions, estimates, and uncertainties. These statements reflect the current internal projections, expectations or beliefs ofCanacol and are based on information currently available to the Corporation. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from thoseanticipated in such statements. All of the forward looking statements contained in this presentation are qualified by these cautionary statements and the risk factors described above. Furthermore, all such statements are made as ofthe date this presentation is given and Canacol assumes no obligation to update or revise these statements.

Financial Information

Non-IFRS measures

Canacol uses various measures to evaluate its performance that do not have a standardized meaning prescribed under International Financial Reporting Standards ("IFRS").• Funds from operations represents cash flow provided by operating activities before settlement of decommissioning obligations and changes in non-cash working capital.• EBITDAX is calculated on a rolling 12-month basis and is defined as net income (loss) and comprehensive income (loss) adjusted for interest, income taxes, depreciation, depletion, amortization, exploration expenses and other

similar non-recurring or non-cash charges.Canacol considers these measures as key measures to demonstrate its ability to generate the cash flow necessary to fund future growth through capital investment, pay dividend and to repay its debt. These measures should not beconsidered as an alternative to, or more meaningful than, cash provided by operating activities or net income (loss) and comprehensive income (loss) as determined in accordance with IFRS as an indicator of the Corporation’sperformance. The Corporation’s determination of these measures may not be comparable to that reported by other companies. The Corporation also presents funds from operations per share, whereby per share amounts arecalculated using weighted average shares outstanding consistent with the calculation of net income (loss) and comprehensive income (loss) per share.

In addition to the above, management uses working capital and operating netback measures.• Working capital is calculated as current assets less current liabilities, excluding current portion of long-term obligations, and is used to evaluate the Corporation’s financial leverage.• Operating netback is a benchmark common in the oil and gas industry and is calculated as revenue, net of transportation expense, less royalties, less operating expenses, calculated on a per unit basis of sales volumes. Operating

netback is an important measure in evaluating operational performance as it demonstrates profitability relative to current commodity prices.

Working capital and operating netback as presented do not have any standardized meaning prescribed by IFRS and therefore may not be comparable with the calculation of similar measures for other entities.

USD

All dollar amounts are shown in US dollars, unless indicated otherwise.

AdvisoriesOil and Gas Information

Barrels of oil equivalent (“boe”)

Boe may be misleading, particularly if used in isolation. A boe conversion ratio of cubic feet of natural gas to barrels of oil equivalent is based on an energy equivalency conversion method primarily applicable atthe burner tip and does not represent a value equivalency at the wellhead. In this presentation, consistent with our MD&A disclosures, we have expressed boe using theColombian conversion standard of 5.7 Mcf: 1 bbl required by the Ministry of Mines and Energy of Colombia.

Oil and Gas Volumes

Unless otherwise noted, volumes of gas (or oil) sold, produced, or assessed as reserves or resources refer to working interest volumes before the deduction of royalties.

Reserves and Resources Information

• The estimates of Canacol’s December 31, 2019 reserves set forth in this presentation have been prepared prepared by Boury Global Energy Consultants Ltd. (“BGEC”) effective December 31, 2019 (the “BGEC 2019 report”). TheBGEC 2019 report covers 100% of the Corporation’s conventional natural gas reserves. The BGEC 2019 report was prepared in accordance with definitions, standards and procedures contained in the Canadian Oil and GasEvaluation Handbook (“COGE Handbook”) and National Instrument NI 51-101, Standards of Disclosure for Oil and Gas Activities (“NI 51-101”). Additional reserve information as required under NI 51-101 is included in theCorporation’s Annual Information Form, which will be filed on SEDAR by March 31, 2020.

• “Proved" or "1P" reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated provedreserves.

• Probable" reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than thesum of the estimated proved plus probable" reserves.

• “Possible” reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10 percent probability that the quantities actually recovered will equal or exceed thesum of proved plus probable plus possible reserves. It is unlikely that the actual remaining quantities recovered will exceed the sum of the estimated proved plus probable plus possible reserves."2P" means Proved Plus Probable reserves."3P" means Proved Plus Probable Plus Possible reserves.

• Estimates of the net present value of the future net revenue from reserves do not represent the fair market value of reserves. The estimates of reserves and future net revenue from individualproperties or wells may not reflect the same confidence level as estimates of reserves and future net revenue for all properties and wells, due to the effects of aggregation.

• All of Canacol’s natural gas reserves disclosed herein are located in Colombia. The recovery and reserve estimates of reserves provided in this document are estimates only, and there is no guarantee that the estimated reserveswill be recovered. Actual reserves may eventually prove to be greater than, or less than, the estimates provided herein. All evaluations and reviews of future net revenue contained in the BGEC 2019 report are stated prior to anyprovision for interest costs or general and administrative costs and after the deduction of royalties, development costs, production costs, well abandonment costs and estimated future capital expenditures for wells to whichreserves have been assigned.

• Certain other information contained in this presentation has been prepared by third-party sources, which information has not been independently audited or verified by Canacol. No representation or warranty, express or implied,is made by Canacol as to the accuracy or completeness of the information contained in this document, and nothing contained in this presentation is, or shall be relied upon as, a promise or representation by Canacol.

• References in this presentation to initial production test rates, initial "flow" rates, initial flow testing, absolute open flow (“AOF”) and "peak" rates are useful in confirming the presence of hydrocarbons, however such rates are notdeterminative of the rates at which such wells will commence production and decline thereafter and are not indicative of long term performance or of ultimate recovery. While encouraging, investors are cautioned not to placereliance on such rates in calculating the aggregate production. All such data should therefore be considered to be preliminary until such analysis or interpretation has been done.

• The resources evaluation, effective December 31, 2019, was conducted by the Corporation’s independent reserves evaluator Gaffney, Cline & Associates (“GCA”), and are in accordance with National Instrument 51‐101 ‐ Standardsof Disclosure for Oil and Gas Activities. The Corporation press released the results of the resources evaluation on April 8, 2020.

Carolina OrozcoVice President, Investor Relations

+44 755.537.3873

[email protected]

Phil HeinrichInvestor Relations Manager

+1 403.269.1754

[email protected]

Mauricio Hernandez TasconInvestor Relations Manager

+57 1.621.1747

[email protected]

www.canacolenergy.com

2020 Investor Presentation |

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Documents

Corporate Presentation€¦ · Corporate Presentation June 2020. Best in Class Assets & Management •Large exploration resource inventory ... •April –June: max 20% of volumes