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  • 1. PMD - TSXV Staying The CourseJANUARY 2012INVESTOR PRESENTATION
  • 2. Forward-looking statement 2All monetary amounts in U.S. dollars unless otherwise stated.This presentation contains certain “forward-looking statements” and “forward-looking information” under applicable Canadian securities lawsconcerning the business, operations and financial performance and condition of PetroMagdalena Energy Corp. Forward-looking statementsand forward-looking information include, but are not limited to, statements with respect to estimated production and reserve life of the variousoil and gas projects of PetroMagdalena Energy; synergies and financial impact of completed acquisitions; the benefits of the acquisitions andthe development potential of the properties of PetroMagdalena Energy; the future price of oil and natural gas; the estimation of oil and gasreserves; the realization of oil and gas reserve estimates; the timing and amount of estimated future production; costs of production; success ofexploration 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-lookingstatements. 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-lookingstatements are based on the opinions and estimates of management at the date the statements are made, and are based on a number ofassumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materiallyfrom those projected in the forward-looking statements. Many of these assumptions are based on factors and events that are not within thecontrol of PetroMagdalena Energy and there is no assurance they will prove to be correct. Factors that could cause actual results to varymaterially from results anticipated by such forward-looking statements include changes in market conditions, risks relating to internationaloperations, fluctuating oil and gas prices and currency exchange rates, changes in project parameters, the possibility of project cost overrunsor unanticipated costs and expenses, labour disputes and other risks of the oil and gas industry, failure of plant, equipment or processes tooperate as anticipated, acquisitions not being integrated successfully or such integration proving more difficult, time consuming or costly thanexpected as well as those risk factors discussed or referred to in PetroMagdalena Energy’s public filings with the securities regulatory authoritiesin the provinces of Canada and available at www.sedar.com. Although PetroMagdalena Energy has attempted to identify important factorsthat could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be otherfactors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-lookingstatements will prove to be accurate, as actual results and future events could differ materially from those anticipated in suchstatements. PetroMagdalena Energy undertakes no obligation to update forward-looking statements if circumstances or management’sestimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance onforward-looking statements. Statements concerning oil and gas reserve estimates may also be deemed to constitute forward-lookingstatements to the extent they involve estimates of the oil and gas that will be encountered if the property is developed. Comparative marketinformation 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 conversionmethod primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. The management estimates ofresources presented herein are arithmetic sums of multiple estimates of remaining recoverable resources (unrisked), which statistical principlesindicate may be misleading as to volumes that may actually be recovered. Readers should give attention to the estimates of individual classesof 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 developmentand contingent resources that have not been adjusted for risk based on the chance of development. It is not an estimate of volumes that maybe 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 formaltransfer of title and or operatorship.
  • 3. Focus on Value Creation1. Focus on organic cash flow opportunities in our portfolio2. Enhance netbacks, reduce costs, increase efficiency3. Exploration success at Cubiro in 2011 now leading to increased development activity in 2012 in the Llanos Basin4. Maximizing value from assets in our portfolio – leverage relationships with strong partners IMPROVING HIGH EXPERIENCED POTENTIAL DRIVING OPERATING LEADERSHIP EXPLORATION VALUE CASH FLOW ASSETS Goal is to increase production and reserves 3
  • 4. Diversified portfolio MAGDALENA Basin •Las Quinchas CATATUMBO Basin •Rio Magdalena •Santa Cruz (1) •Carbonera-La Silla(1) •Carbonera •Catguas RED blocks: LLANOS Basin 2010 ANH E&P •Cubiro(2) blocks •Arrendajo •La Punta •YamuAgreements subject to ANH orEcopetrol approval PUTUMAYO Basin(1) Operated by Mompos Oil andGas, a wholly owned subsidiary. •Topoyaco(2) Operated by Alange Energy •MecayaCorp. a wholly owned subsidiary. 4
  • 5. Achievements Q1 through Q3 2011 Achieved OngoingReduced G&A per boe by 54% Q3 2011 vs 2010average Increased Operating Netback by 49% 2011 YTD(9 months) from FY2010 average Increased reserves at Cubiro by 86% * Drilling program at Cubiro OExploration at Cubiro OSpud 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* Petrotech report on Cubiro block, September 30, 2011** Subject to ANH approval 5
  • 6. 86% increase in 2P reserves at CubiroTechnical 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 6 Source: Petrotech Engineering Ltd. report on Cubiro block, September 30, 2011
  • 7. Cubiro 2P Reserves Changes in 2011 September 30, 2011 12,000 10,823 10,000 1,831 1,233 8,000Mbbls 2,079 6,000 5,831 1,123 972 4,000 2,570 2,000 0 Dec 2009 Dec 2010 2011 Cubiro Purchase Petirrojo Copa B Copa A Sur Reserve Reserve Production 32% of Discovery Discovery Discovery Report Report & Technical Cubiro C Revisions 7Source: Petrotech Technical reports: September 30, 2011, December 31, 2010 and 2009
  • 8. Daily Average Production 2010-2011 PetroMagdalena’s Gross Working Interest 4500 Copa A Sur-1 4000 3500 Copa B-1 3000 Petirrojo Field 2500boed 2000 Yamu 1500 32.13% Cubiro Block C 1000 acquired Arauco5/ Careto 13H 500 0 2010 base wells Year Q1 Q2 Q3 Q4 Dec 2010 2011 2011 2011 2012 2011 * • Daily average for month of December 2011 • Petirrojo 2 & 3 put on production in December. 8
  • 9. Strengthening operating cash flow • 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 $60.00 $35.00 G &A per barrel $50.00 $30.00Netback per $25.00 $40.00 $20.00 barrel $30.00 $15.00 $20.00 $10.00 $10.00 $5.00 $- $- Q2 - 2010 Q3 - 2010 Q4 - 2010 Q1 - 2011 Q2- 2011 Q3 - 2011 Operating Netback per barrel G&A per barrel 9
  • 10. Enhancing Cubiro’s netback • New 3-year conventional oil marketing agreement signed with Pacific Rubiales effective February 1, 2011 • Three potential delivery points to Colombian pipeline infrastructure Illustrative summary of potential netbacks from crude oil sales from Cubiro production (1) (US$ per barrel) Rubiales / Guaduas / Araguaney /Delivery Point / Reference Price WTI Vasconia Vasconia (2)WTI (Nymex : January 12, 2012) $99.10 $99.10 $99.10 +8.00 +7.35 (3) +7.35 (3)Benchmark Quality AdjustmentRoyalties (7.00) (7.00) (7.00)Net Revenue $100.10 $99.45 $99.45Production costs (Q3 - 2011) 14.50 14.50 14.50Transportation & pipeline 16.50 22.50 10.00Operating Netback $69.10 $62.45 $74.95 (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 10
  • 11. 2011 Work ProgramEstimated 2011 capital investment: $41 million(1)Property Work Program 2011(1) Approximate timingExploration PlanCubiro • 4 wells(2 Block B, 2 Block C) • 3 drilled, 3 discoveries (Yopo-1X discovery well) • Yopo well, Q4-2011Arrendajo • 1 well (Azor -1X discovery well) • Azor-1X, TD on Jan 5th 2012La Punta • 1 well (LP-4 dry) • LP-4 drilled, Q2-2011Topoyaco • 1 well (Yaraqui-1X . . • Yaraqui-1X, Q4-2011 . non commercial)Santa Cruz • 1 well • Spud Nov. 20th, 2011 - drillingDevelopment PlanCubiro • 4 wells + 1 WO + facilities, • 2 wells completed in Q1-2011 including storage • Petirrojo-3 dev well in Q4-2011 • Petirrojo-2 dev well in Q4-2011 • 1 WO in Q4-2011(1) Management estimate, subject to change 11
  • 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 extpected 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. 12
  • 13. 2012 Work Program Estimated 2012 capital investment: $50 million - $60 million (1)Property Work Program 2012(1) Approximate timing - 2012Exploration DrillingCubiro • 4 wells in Area ‘B’ • 4 in Q1, 1 Q2, 1 Q4 • 1 well in Area ‘C’ • 1 contingent wells ( Area ‘C’)Arrendajo • 1 well (Arrendajo Norte-1X) • 1 well in Q1-2012Carbonera • 1 well • 1 well in TD in Q2-2012Development DrillingCubiro • 7 wells • 1 well spud in Q1-2012 • 3 contingent wells • 3 wells each subsequent qtr.(1) Management Estimate, subject to change 13
  • 14. Annual Cash Flow (1) 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 $(8M) $ 7M cash from asset dispositions (4) Total cash available to fund annual work program $56M $66M Annual work program expenditures (4) $41M $50-$60M(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). 14(4) Management estimate; subject to change.
  • 15. Llanos Basin – CubiroOperator: Alange Energy Corp. (1)WI: A:60.5% B:70% C:57.13%Contract: ANHProduct: L/M OilArea: 61,295 acres2P Reserves: 10.8 MMbbl (2)Production: 2010 A (Year Avg): 1,905 bopd 2011 A (Year Avg): 2,138 bopd 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) (1) A wholly owned subsidiary of PetroMagdalena (2) Petrotech Report dated Sept. 30, 2011, PetroMagdalena share, gross before royalties 15
  • 16. Llanos Basin - Cubiro Highlights Field Prospect • Operated by PetroMagdalena Palmarito C7 • All production is subject to the sliding 40 °API scale royalty rates of ANH and a 3% overriding royalty on total production from the Block. Careto Turpial Q1 -2012 Yopo, Q4-2011 Arauco Barranquero Sirenas • The Cubiro Block has been under an C5 Petirrojo 37 °API Exploration and Production (E&P) Petirrojo Sur Contract with ANH since October 8, 2004, exploration phases followed by a Q2 - 2012 Cernicalo Q1-2012 Canario Sirenas 25 year production period. Sur Guanapalo Copa • Currently, there are eight producing oil C7 30 °API Tijereto Sur Copa A Norte fields: Careto, Arauco, Barranquero, Q1-2012 Q4-2012 Petirrojo, Yopo, Copa, Copa B and Copa A Sur Copa A Sur. Copa BJordánC7 Altair Copa C, Q1-2012 Caño Gandul • Currently producing from Carbonera C-29 °API C7 C5-C7 38 °API 5, C-7 and Gacheta formations. • Four new fields discovered at Petirrojo, Copa B, Copa A Sur and Yopo in 2011. Polygon A : Polygon B : Polygon C : Development Area Exploration Area Exploration Area 60.5% W.I. 70% W.I. 57.13% W.I. 16
  • 17. Petirrojo Field, Petirrojo South & Yopo Prospects Carbonera C7 TWT Seismic Map• 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 752 bopd with 4.7% BS&W for 6.5 hours at an average wellhead pressure of 265 psi. Yopo Field• 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 Petirrojo Field CURRENT TECHNICAL REPORT (1) 2P RESERVES Petirrojo-1 (Mbbls) Petirrojo 2,036 (1) Company share, Sept 30, 2011 technical report Petirrojo South Prospect 1 Km 17
  • 18. Copa B Field, Copa A Sur & Copa AN Prospect Carbonera C7• Copa B-1 exploration well encountered 41 ft TWT Seismic Map of net pay. Daily average production during October has averaged 765 bopd (Company share 437 bopd). ESP stopped Copa AN Prospect 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° Copa ASur Field API light oil on natural flow.• Copa A Sur-1 went on production Nov 6th .• The Copa C structure to the south of Copa Copa ASur-1 B will be drilled in Q1-2012 CURRENT TECHNICAL REPORT (1) Copa B Field 2P Reserves (Mbbls) Copa B 1,230 Copa B -1 1 Km Copa A Sur 1,831 (1) Company share, September 30, 2011 technical report 18
  • 19. Cubiro ‘C’ Area – Copa UpsideCarbonera C7 TWT Seismic Map Copa Field Copa A Norte 2P RESERVES Sept 30, 2011 Technical Report (Mbbls) 100% Gross Net Copa A Sur 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 Copa B 8,366 4,779 4,408 Copa C Producing Exploration 2012 Copa D Development 19
  • 20. Yaguazo Llanos Basin – Arrendajo Mirla Negra ARRENDAJO Azor Mirla Q4-2011 Highlights Mirla Oeste Blanca Arrendajo Norte • Arrendajo is 7 km NE of the Cubiro block Q1-2012 • 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. Arrendajo Sur • Five exploration prospects in the CarboneraCUBIRO 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 Operator: Pacific Stratus Energy Colombia (1) million to be paid out of production. WI: 67.5% Contract: subject to ANH approval Product: Light Oil Area: 78,102 acres Resources: 8,259 Mbbl (2) Stage: Exploration (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. 20
  • 21. Azor and Petirrojo Trends - UpsideCarbonera 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. Yaguazo • Arrendajo-1X will be drilled after testing Producing and completion is completed on Azor, Exploration 2012 civil work has been completed. Exploration 2013 Development Mirla Negra • 3D seismic evaluation identified four new prospects on the Azor trend. Azor • Mirla Negra-1X was drilled in 2008 and tested oil in the C5 but was not declared commercial Arrendajo Norte
  • 22. Putumayo Basin 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. InTopoyaco & Mecaya addition, there is a 3.5% profit interest payable toContracts: ANH Grant Geophysical for the seismic work.Operator: Topoyaco – Pacific Rubiales WI: 50%, subject to ANH approval Mecaya – Gran Tierra WI: 42%, subject to ANH approvalProduct: L/M oil exploration potentialProduction: Nil 22
  • 23. Catatumbo Basin VENEZUELA About Putumayo • Putumayo Basin is located in northwest Catguas Block Colombia and is the western extension of the very prolific Maracaibo basin in Carbonera La Silla Venezuela • High potential exploration targets Highlights • Partnered with experienced operators. Santacruz Block • PetroMagdalena has a beneficial 100% Carbonera Block working interest in the Carbonera Block, subject to ANH approval. • PetroMagdalena has a 70% workingCatguas, Santa Cruz and Carbonera interest in the Santa Cruz Block, and isContracts: ANH drilling the Santa Cruz-1X well.Operator: • PetroMagdalena has a 58% working Catguas – Solana (1) interest in the Carbonera La Silla Block, WI: 50% N, 15% S, subject to ANH approval an Ecopetrol association contract. Santa Cruz – Mompos Oil and Gas (2) • PetroMagdalena has a beneficial 50% WI: 70% working interst in the northern area of Carbonera – Well Logging Catguas and a beneficial 15% working WI: 100%, subject to ANH approval interest in the southern area. Gran Tierra isProduct: L/M oil exploration potential the operator.Production: Nil (1) Wholly owned Subsidiary of Gran Tierra Energy (2) Wholly owned subsidiary of PetroMagdalena.
  • 24. Maximize Value From Catatumbo AssetsActions TakenFarm Out Agreement for Santa Cruz:• Retain Operatorship• Retain 70% Working Interest• Pay 40% of first well in Q4 – 2011, 55% of second well, 70% thereafterFarm Out Agreement for Carbonera (1):• YPF becomes Operator, bring extensive gas experience• Retain 40% Working Interest• Carried through US$23 million work programFarm 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 24
  • 25. Catatumbo Basin – Santa Cruz-1 Santa Cruz – 2, TD Q1 - 2013 Total of • Santa Cruz-1 is being drilled, and spud on Nov. 20th, 2011, in the A3480 acres C: 700 Block which has an area of 750 acres acres with a primary target (Mirador) thickness of over 300 ft of high porosity & permeability SS reservoir.A: 750acres F: 420 • The Santa Cruz Block has several faulted acres structures assigned prospective resources based on the 3D seismic interpretations and information from the offset Rio ZuliaB: 800 E: 580 fieldacres acres • A contingent exploration location has been identified in the C Block to the north D: 230 of the Santa Cruz-1X well. acres Santa Cruz – 1, TD Q1 - 2012Operator: Mompos Oil and Gas (1)WI: 70% 25
  • 26. CapitalizationCash position (December 31st , 2011): $15.0 millionDebt (December 31st , 2011): Factoring Loan (maturing Oct 2012) $5.1 million Bank term loans (maturing May/ Aug 2013) $6.6 million 9% Senior Notes ( $10.4MM maturing May 2014) CA$31.1 millionShare price (January 16, 2011): CA$1.08Shares outstanding: 142.3 millionOptions outstanding ($2.17 average) 13.5 millionWarrants outstanding ($3.50) 19.0 millionFully diluted: 174.8 millionMarket capitalization - undiluted (January 16, 2011): CA$153.7 million 26
  • 27. Leadership teamManagement DirectorsLuciano Biondi Jaime Perez BrangerChief Executive Officer Executive ChairmanGregg K. Vernon, P.Eng Miguel de la CampaChief Operating Officer Serafino IaconoMichael Davies, C.A.Chief Financial Officer Ian MannFrancisco Bustillos, M.Sc. Robert MetcalfeColombian Finance &Administration Manager Luis Miguel MorelliJesus AboudExploration ManagerPeter Volk, LL.B.General Counsel & Secretary 27
  • 28. Appendix 28
  • 29. Assets in the most prolific basins (1) (3) Area Operator Gross Acres WI Contract Stage Product StatusLlanos 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 ProducingCatatumbo Basin Carbonera Well Logging 63,727 100% ANH E&P Oil & Gas Farm-Out 15% / 50% Catguas Gran Tierra 330,355 (2) ANH Exploration Oil & Gas Farm-Out S N Santa Cruz Mompos 40,058 70% ANH Exploration Light Oil Exploration Carbonera – La 3D seismic work plan Mompos 12,558 58% ECP E&P Light Oil Silla in placeMagdalena Basin Las Quinchas Pacific Stratus 124,493 24.5% ECP E&P H Oil To Be Sold Gas/Cond/ Rio Magdalena Gran Tierra 36,156 56% ECP E&P JV or Farm-Out OilPutumayo 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
  • 30. 2012 Exploration Program 2012Well name QuarterCubiro Block Cernicalo-1ST 1 Tijereto Sur-1X 1 Copa C-1X 1 Turpial-1X 1 Petirrojo Sur-1X 2 Copa A Norte-1X 4Arrendajo Block Arrendajo Norte-1X 1Carbonera Block San Roque-1X (MBOE) 1 30
  • 31. 2010 ANH Bid Round Six E&P Assets • Agreement for funding the exploration commitment, resulting in PetroMagdalenaVMM 35 holding a 10% Working Interest.VMM 11 LLA 41COR 33VSM 12VSM 13 MIDDLE MAGDALENA VALLEY BASIN CORDILLERA BASIN UPPER MAGDALENA VALLEY BASIN LLANOS BASIN 31
  • 32. Colombian Pipeline Infrastructure 32