PMD - TSXV                Building On Our SuccessApril 2012INVESTOR PRESENTATION                                          1
Forward-looking statementAll monetary amounts in U.S. dollars unless otherwise stated.This presentation contains certain “...
Building On Our Success Focus on organic cash flow opportunities in our portfolio Enhance netbacks, reduce costs, increase...
Diversified Portfolio       LLANOS BASIN        •Cubiro(1)        •Arrendajo(2)                               CATATUMBO BA...
43% increase in 2P oil reserves                                   $145 Million increase in 2P NPV (1)                     ...
Cubiro 2P oil reserves up 96% in 2011                                                                                     ...
Daily Average Production 2010-2012                                     PetroMagdalena’s Gross Working Interest           4...
It’s All About Brent Now   150   130                    Q1 2012 Avg. sales price = $116   110      90US$      70      50  ...
Cubiro’s Netback• A 3-year conventional oil marketing agreement signed with Pacific  Rubiales effective February 1, 2011• ...
Strengthening Operating Cash Flow                     • Enhancing operating netback                          • Oil marketi...
2012 Work Program Overview                                                        2012 Work Program Overview• Original cap...
Q2 – Q4 Cubiro Drilling Schedule(1)           Production modelling for Development wells:           • Average Cubiro Devel...
Annual Cash Flow                                                                                                          ...
Llanos BasinYopo-1X                          CUBIRO RESERVES            Reserve Category                            Gross ...
Llanos Basin - Cubiro             CUBIRO                                                                                  ...
Petirrojo & Yopo Fields, Petirrojo Sur Prospect                                                                           ...
Copa, Copa A & Copa AS Fields                                                                             Carbonera C7 TWT...
Cubiro ‘C’ Area – Copa UpsideCarbonera C7 TWT Seismic Map             2P RESERVES               Dec 31, 2011 Technical Rep...
Azor average Production                           Yaguazo        Llanos Basin – Arrendajo                March 2012 870 bo...
Arrendajo Block Azor discovery - UpsideCarbonera C7 TWT Seismic Map                                     • Azor-1X well was...
LLA-47 Block – Exploration Potential                            Highlights           • PetroMagdalena signed a binding let...
Catatumbo Basin                                       VENEZUELA                               About Catatumbo   Catguas   ...
Catatumbo Basin – Santa Cruz-1                               Santa Cruz – 2, TD Q1 - 2013 Total of                        ...
Catatumbo Basin – Cantaclaro-1X                         About Cantaclaro                 • The Cantaclaro-1X exploration w...
Putumayo Basin                                                      About Putumayo                                        ...
CapitalizationCash position (December 31, 2011):                 $14 millionDebt (December 31, 2011): Factoring Loan (matu...
PetroMagdalena is in the right country,                           focused in the right basin120                           ...
Leadership team   Management                       DirectorsLuciano Biondi                Jaime Perez BrangerChief Executi...
Appendix           29
Valuation Gap                                Colombian E&Ps are trading at compressed multiples relative to               ...
Assets in the most prolific basins                                           (2)                                  (2)     ...
PMD Today                                           Track Record of                                                       ...
Planned Exploration Program 2012Exploration overview 2012•   6 exploration wells planned for Cubiro, 3 drilled in Q1 – Cer...
2012 Development ProgramDevelopment overview 2012• 10 Llanos development wells planned for Cubiro                         ...
2010 ANH Bid Round - Six E&P Assets                  •   Agreement for funding the exploration                      commit...
Colombian Pipeline Infrastructure                               36
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  • At Topoyaco, where we have 50% workinginterest, Pacific Rubiales isthecontractoperator. Lastyear, wedrilled and identified heavy oil at Prospect C, furthertestingmay be done later in theyear, butourfocusrightnowisondrillingtheprospectwiththemostpotential, Prospect D.
  • We were awarded these six blocks as the outcome of the 2010 ANH Open Round. We entered into an agreement with a third party to fund 100% of the phase one exploration commitments in exchange for earning 90% working interest in the blocks. After the phase one seismic work program is complete, Alange has an option to increase its participation to 20%.
  • Investor Presentation April 2012

    1. 1. PMD - TSXV Building On Our SuccessApril 2012INVESTOR PRESENTATION 1
    2. 2. Forward-looking statementAll 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 thebusiness, operations and financial performance and condition of PetroMagdalena Energy Corp. Forward-looking statements and forward-looking informationinclude, 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 PetroMagdalenaEnergy; 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 ofestimated 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 constitutesforward-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 onthe 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 anduncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Many ofthese 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 becorrect. Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include changes in marketconditions, risks relating to international operations, fluctuating oil and gas prices and currency exchange rates, changes in project parameters, the possibility ofproject cost overruns or 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 than expected as well asthose risk factors discussed or referred to in PetroMagdalena Energy’s public filings with the securities regulatory authorities in the provinces of Canada andavailable at www.sedar.com. Although PetroMagdalena Energy has attempted to identify important factors that could cause actual actions, events or results todiffer 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 differmaterially from those anticipated in such statements. PetroMagdalena Energy undertakes no obligation to update forward-looking statements if circumstancesor management’s estimates 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-looking statements to the extentthey 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 ofthis 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 primarilyapplicable at the burner tip and does not represent a value equivalency at the wellhead. The management estimates of resources presented herein are arithmeticsums of multiple estimates of remaining recoverable resources (unrisked), which statistical principles indicate may be misleading as to volumes that may actuallybe recovered. Readers should give attention to the estimates of individual classes of resources and appreciate the differing probabilities of recovery associatedwith each class. Estimates of remaining recoverable resources (unrisked) include prospective resources that have not been adjusted for risk based on the chance ofdiscovery 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 ofvolumes 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, itis 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. 3. Building On Our Success Focus on organic cash flow opportunities in our portfolio Enhance netbacks, reduce costs, increase efficiency Increase development activity in 2012 in the Llanos Basin following exploration success Maximize value from all assets in our portfolio – leverage relationships with strong partners Identify production growth opportunities in Colombia HIGH IMPROVINGEXPERIENCED OPERATING POTENTIAL DRIVING LEADERSHIP EXPLORATION VALUE CASH FLOW ASSETS Goal is to increase production and reserves 3 3
    4. 4. Diversified Portfolio LLANOS BASIN •Cubiro(1) •Arrendajo(2) CATATUMBO BASIN •LLA 47 •Santa Cruz (3) •Yamu •Carbonera •La Punta •Catguas •Carbonera-La Silla(2) RED blocks: 2010 ANH E&P blocks PUTUMAYO BASIN •Mecaya (4) •TopoyacoAgreements subject to ANH or Ecopetrolapproval(1)Operated by Alange, Corp. a whollyowned subsidiary.(2)Operated by Pacific Stratus., a whollyowned subsidiary of Pacific Rubialas(3) Operated by Mompos Oil and Gas, awholly owned subsidiary.(4) Operated by Gran Tierra 4
    5. 5. 43% increase in 2P oil reserves $145 Million increase in 2P NPV (1) 2011 provided High Profit, light oil, reserves growth 2P Light Oil reserves increased by 4 MM Bbls 37% increase in 2P NPV(1), up $145 million Before Tax Net Present Value 2P Reserves (MM boe) (2) Discounted at 10% (1)$600,000 35 538,985 30$400,000 394,039 25 358,884 20 15$200,000 10 5 13.3 6.6 9.3 $0 0 2009 2010 2011 2009 2010 2011 2P NPV10BT OIL Gas Nat. Gas Liquids (1) Before Tax Net Present Value Discounted at 10% (2) Source: NI 51-101 Technical Report, Petrotech Engineering, December 2009, December 2010 and December 2011. Reserves before royalties based on working interest 5
    6. 6. Cubiro 2P oil reserves up 96% in 2011 December 31, 2011 14,000 11,432 12,000 1,831 10,000 2,374M Bbls 8,000 1,415 6,000 5,831 1,225 1,569 4,000 2,570 2,000 0 Dec 2009 Dec 2010 Less 2011 Petirrojo Yopo Copa A Sur Copa B Reserve Reserve Production Discovery Discovery Discovery Discovery Report Report & Technical Revisions Source: NI 51-101 Technical Reports, Petrotech Engineering dated: December 31, 2009, December 31, 2010 and December 31, 2011 6
    7. 7. Daily Average Production 2010-2012 PetroMagdalena’s Gross Working Interest 4,500 4,000 Azor-1X 3,500 Cernicalo-1ST 3,000 Yopo-1X boed 2,500 Copa A Sur-1X 2,000 Copa B-1X 1,500 Petirrojo Field 1,000 Yamu 500 2010 base wells 0* Cernicalo-1ST put on production February 25th, 2012* Azor-1X put on production January 31st, 2012. 7
    8. 8. It’s All About Brent Now 150 130 Q1 2012 Avg. sales price = $116 110 90US$ 70 50 Vasconia linked to Brent 30Source: Bloomberg Brent WTI Vasconia• Brent 96% correlated with Vasconia over the last 6 months. Leveraging marketing strategy to capture positive premium to WTI.• 4th quarter premium to WTI was approximately $14 per barrel. Increased revenue to $109 per barrel sold. 8• Average Q1 2012 sales price was $116 at Cubiro 8
    9. 9. Cubiro’s Netback• A 3-year conventional oil marketing agreement signed with Pacific Rubiales effective February 1, 2011• Lower Trucking costs would be expected for deliveries to Cusiana or Bicentenario would positively impact net back between US$3.00/bbl and US$ 7.00/bbl. Projects to be completed in second half of 2012. Illustrative summary of potential netbacks from crude oil sales from Cubiro production (US$ per barrel) Delivery Point / Reference Price : Guaduas / Vasconia Q4 2011 A APRIL 12, 2012 (1)WTI Average (Nymex) 93.23 103.64Benchmark Quality Adjustment 14.14 12.60Royalties (2) (8.21) (8.74)Net Revenue 99.16 107.50Production Costs (3) (19.20) (19.20)Transportation & pipeline (3) (18.63) (18.63)Operating Netback 61.33 69.67(1) Management Estimate(2) Royalty presented on barrel of oil sold. ANH royalty oil is taken in kind at the wellsite 9(3) Production Costs and Transport & Pipeline costs presented are the average for Q4, 2011
    10. 10. Strengthening Operating Cash Flow • Enhancing operating netback • Oil marketing contract in conjunction with Pacific Rubiales • Ongoing opex reduction program • Price of Colombian light oil moves to Brent reference • Efficiencies generating positive trend in G&A per barrel produced $70.00 $35.00Netback per barrel $60.00 $30.00 G &A per barrel $50.00 $25.00 $40.00 $20.00 $30.00 $15.00 $20.00 $10.00 $10.00 $5.00 $- $- Q2 - 2010 Q3 - 2010 Q4 - 2010 Q1 - 2011 Q2 - 2011 Q3 - 2011 Q4 - 2011 Operating Netback per barrel G&A per barrel 10
    11. 11. 2012 Work Program Overview 2012 Work Program Overview• Original capital expenditure program estimated at $50 to $60 million, excluding commitments funded by farm-ins• Capital expected to be funded from cash and internally generated cash flow• No near term financing expected to be required to fund 2012 work plan.• 65% planned to be directed to light oil exploration and development in Cubiro and Arrendajo• 3 more Llanos exploration wells and 10 development wells planned for the balance of 2012, 5 exploration wells drilled• 2012 Llanos exploration program: Management estimate of company’s working interest share of recoverable prospective light oil resources would be almost a double 2P Llanos reserves on an Un-Risked or approximately + 40% on a Risked basis Exploration Success – Expanded Work Program• Revised budget with capital expenditure estimated at $70 to $80 million(1) planned to be presented in May 2012(1) Management estimate, subject to change, subject to board approval 11
    12. 12. Q2 – Q4 Cubiro Drilling Schedule(1) Production modelling for Development wells: • Average Cubiro Development well, first 6 months = 585 bopd (1) Q1 Q2 Q3 Q4 Feb Mar WELL TYPE Apr May Jun Jul Aug Sep Oct Nov Dec5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 Development C C C B C C B C B C Exploration B C C • Exploration wells • Petirrojo Sur-1X • Copa C-1X • Copa A Norte-1X (1) Management Estimate, subject to change (2) 7 development wells in Area ‘C’,3 development wells in Area ‘B’ 12 (3) Revised budget and work program planned to be presented to Board in May 2012
    13. 13. Annual Cash Flow 2011A 2012E (1) Average daily production for the year (gross before 2,761 4,300-4,700 boed royalties) boed Cash flow from operating netbacks(4) $54.3 M(3) $82M(2) Less: G&A $14.7M $16M Less: Debt service (principal & interest) $18.4M $20M(5) Less: Equity tax instalments $2.1M $ 2M Net cash flow from operations $19.1M $44M Cash position, beginning of year $6.5M $14M Cash available from equity financing for work program $35.0M - Other sources/ (uses), including working capital $10.4M $ 7M (1) changes and cash from asset dispositions Total cash available to fund annual work program $71.0M $66M ANNUAL WORK PROGRAM EXPENDITURES $56.9M(6) $50-$60M(1) Management estimate, subject to change.(2) Management estimate, 2012E calculated with an $80/bbl WTI pricing.(3) Based on 2011 daily average sales of 2,664 boe at average netback of $55.84 per boe(4) 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.(5) 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).(6) Includes $6.0M of seismic and other costs charged to exploration expense, $35.3M additions to exploration and evaluation assets and $15.6M additions to oil & gas properties, plant & equipment. 13
    14. 14. Llanos BasinYopo-1X CUBIRO RESERVES Reserve Category Gross BOGOTA L&M Crude Oil (Mbbl) (1) Proved 5,564 Probable 5,870 Total 2P 11,432 Most prolific hydrocarbon basin in Colombia (1) Reserves before royalties based on working interest Source: NI 51-101 Technical Report, Petrotech Engineering, December 2011 14
    15. 15. Llanos Basin - Cubiro CUBIRO Highlights Producing Field • Operated by PetroMagdalena Prospect Palmarito C7 40 °API • 4 discoveries in 2011, 1 YTD 2012 • The Cubiro Block has been under an Careto Alondra Q1 -2012 Yopo, Q4-2011 E&P Contract with ANH since October Arauco Barranquero Petirrojo Sirenas C5 8, 2004. Exploration phase followed 37 °API Petirrojo Sur by a 25 year production period. Q2 - 2012 Cernicalo Q1-2012 MAIN FACILITY AT CARETO Canario Sirenas Sur Guanapalo Copa C7 Tijereto Sur Copa A Norte 30 °API Q1-2012 Q4-2012 Copa A Sur Copa BJordán Altair Copa C, Q3-2012 Caño GandulC729 °API C7 C5-C7 38 °API Polygon A : Polygon B : Polygon C : Development Exploration Exploration Area Area Area 60.5% W.I. 70% W.I. 57.13% W.I. 15
    16. 16. Petirrojo & Yopo Fields, Petirrojo Sur Prospect Carbonera C7 TWT Seismic MapDEVELOPMENT• Two development wells in 2012, one in Petirrojo and one in Yopo.• Petirrojo-1X cumulative production block Yopo Field over 240,000 bbls 40 API oil produced• Engineering plans being developed to replace rented facilties to reduce Opex, estimated payout in 1.5 years. EXPLORATION• Petirrojo Sur-1X exploration well will be drilled in Q2-2012, civil work is completed 2012. Petirrojo Field CURRENT TECHNICAL REPORT 2P RESERVES (Mbbls) (1) Petirrojo-1 Petirrojo 1,569 Yopo 1,415 Petirrojo Sur-1X Prospect 1 KmSource: NI 51-101 Technical Report, Petrotech Engineering, December 2011 16(1) Reserves before royalties based on working interest
    17. 17. Copa, Copa A & Copa AS Fields Carbonera C7 TWT Seismic MapDEVELOPMENT• Copa-4 was drilled NW of Copa-1X at the Copa-4 projected OWC and found the reservoir sands ≈ 20 ft higher - additional drilling further west COPA FIELD is planned to determine reservoir limits.• Copa-5 to be drilled in Q2-2012 Copa-1XEXPLORATION• The Copa C structure is to the south of Copa Copa AN Prospect B, an exploration well is planned for Q4-2012.• The Copa A Norte structure is between two producing fields, Copa and Copa A Sur, an exploration well is planned for Q4-2012. CURRENT TECHNICAL REPORT COPA ASUR FIELD 2P Reserves Copa ASur-1 (Mbbls) (1) Copa 1,710 Copa B 1,379 Copa B -1 Copa A Sur 2,375 COPA B FIELD 1 Km(1) Reserves before royalties based on working interest 17 Source: NI 51-101 Technical Report, Petrotech Engineering, December 2011
    18. 18. Cubiro ‘C’ Area – Copa UpsideCarbonera C7 TWT Seismic Map 2P RESERVES Dec 31, 2011 Technical Report (Mbbls) 100% Gross Net Copa Field Copa Field 2,991 1,709 1,572 Copa A Sur 4,157 2,375 2,185 Copa A Norte Copa B 2,570 1,468 1,352 Q4-2012 9,718 5,552 5,109 Copa A Sur Copa Field Main Facility Copa B Copa C Q4-2012 Producing Exploration 2012 Copa D Development Q1-2013 Treatment Capacity = 12,000 bfpd Storage Capacity = 10,000 bbls 18
    19. 19. Azor average Production Yaguazo Llanos Basin – Arrendajo March 2012 870 bopd Mirla Negra ARRENDAJO Azor Highlights Q4-2011 Mirla Oeste Mirla Blanca • Arrendajo is 7 km NE of the Cubiro block • Operated by Pacific Rubiales Energy 3D seismic proposed for 2013 program • 120 km2 of 3D survey completed in April 2011, interpretation shows 6 light oil Producing Field prospects on trend with producing oil fields Prospect 3D Seismic • Azor discovered in January 2012 and was Arrendajo Sur initially put on production on January 31,CUBIRO 2012. • Four exploration prospects in the Carbonera formation have been identified for Drilling: Yaguazo, Arrendajo Sur, Mirla Blanca, and Mirla Oeste Operator: Pacific Stratus Energy Colombia (1) • 3D seismic required to map complete WI: 67.5% trend, to be acquired in 2013. Contract: subject to ANH approval Product: Light Oil • PetroMagdalena acquired 32.5% additional Area: 78,102 acres working interest, from Pacific Rubiales in Stage: Exploration November 2011, subject to ANH approval, for $10 million to be paid out of 19(1) A wholly owned subsidiary of Pacific Rubiales Energy . production.
    20. 20. Arrendajo Block Azor discovery - UpsideCarbonera C7 TWT Seismic Map • Azor-1X well was drilled and completed on January 31, 2012. The well tested at 870 bopd. Average production for March 2012 was 830 bopd natural flow adding 560 bopd to PetroMagdalena’s gross working interest production. Yaguazo • Two exploration prospects defined by 3D Producing seismic north of the Azor discovery, Yaguazo Exploration 2012 and Yaguazo Norte. Exploration 2013 • Mirla Negra-1X was drilled in 2008 and tested Development Mirla Negra oil in the C5 but was not declared commercial Road to the Azor Wellsite Azor 20
    21. 21. LLA-47 Block – Exploration Potential Highlights • PetroMagdalena signed a binding letter of intent with Interoil Colombia E&P Inc. in respect of a 50% participation to farm in • Expansion of current Llanos exploration play – LLA-47 covers an area of 447 km2 south and on trend with the company’s main Cubiro block and other producing blocks in the basin • Two additional years of active drilling • Interoil has a 100% of the working interest on the block and is the current operator. • The Company has agreed to undertake a $30 million work program commitment in the three years of Phase 1 of the E&P contract with the ANH. • Transaction is subject to approval by the ANH. In addition, the Company shall pay a $2 million signing fee upon receipt of ANH approval. 21
    22. 22. Catatumbo Basin VENEZUELA About Catatumbo Catguas • Catatumbo Basin is located in northwest Block Colombia and is the western extension of the Carbonera La very prolific Maracaibo basin in Venezuela Silla • High potential exploration targets Santacruz Highlights Block • PetroMagdalena has a beneficial 100% Carbonera Block working interest in the Carbonera Block, subject to ANH approval. • PetroMagdalena has a 70% working interest inCatguas, Santa Cruz and Carbonera the Santa Cruz Block, the Santa Cruz-1X wellContracts: ANH is the first exploration well on the block.Operator: • PetroMagdalena has a 58% working interest Catguas – Solana (1) in the Carbonera La Silla Block, an Ecopetrol WI: 50% N, 15% S, subject to ANH approval association contract. Santa Cruz – Mompos Oil and Gas (2) WI: 70% • PetroMagdalena has a beneficial 50% working Carbonera – Well Logging interest in the northern area and 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 • MOU signed with YPF to farm out 60% of Carbonera and 70% of the Catguas WI.(1) Wholly owned Subsidiary of Gran Tierra Energy(2) Wholly owned subsidiary of PetroMagdalena. 22
    23. 23. Catatumbo Basin – Santa Cruz-1 Santa Cruz – 2, TD Q1 - 2013 Total of About Santa Cruz3480 acres C: 700 • The Santa Cruz Block has several faulted acres structures assigned prospective resources based on the 3D seismic interpretations and information from the offset Rio ZuliaA: 750 fieldacres F: 420 • High potential exploration targets acres Highlights • Santa Cruz-1 spudded on November 20,B: 800 E: 580 2011, and casing run over the Miradoracres acres Formation end of February, 2012. The A Block with an area of 750 acres has the Mirador as the primary target, a high D: 230 porosity & permeability Sandstone acres reservoir. A contingent exploration location has been identified in the C Block Santa Cruz – 1, TD Q1 - 2012 to the north of the Santa Cruz-1X well. Operator: Mompos Oil and Gas (1) • Santa Cruz 2X targeted for exploration Q4 WI: 70% 2012 (pending Santa Cruz 1X results)(1) Wholly owned subsidiary of PetroMagdalena. 23
    24. 24. Catatumbo Basin – Cantaclaro-1X About Cantaclaro • The Cantaclaro-1X exploration well, on the Carbonera Block, spudded on March Catatumbo 15, 2012, and was drilled to the top of Mito Juan the target La Luna formation at a depth of 4,560 feet MD where intermediate 9- 5/8 inch casing was set . Highlights • After setting Intermediate 9-5/8 inch casing the next operation is to install underbalanced drilling equipment. Colon • The La Luna target formation will then be drilled, highly deviated, and the well is estimated to reach TD at the base of La Luna the La Luna Formation at a measured Cogollo depth of 5,480 feet MD. • PetroMagdalena has signed an MOU to farm-out 60% of the Carbonera block to YPF as part of a $23 million work program, subject to ANH approval. 24
    25. 25. 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 overriding royalty and will pay 85% of the cost of the first 3D and well.Topoyaco & MecayaContracts: ANH • PetroMagdalena has a 50% working interest inOperator: the Topoyaco Block, subject to the ANH Topoyaco – Pacific Rubiales approval, with a 6% overriding royalty to WI: 50%, subject to ANH approval Trayectoria. In addition, there is a 3.5% profit Mecaya – Gran Tierra WI: 43%, subject to ANH approval interest payable to Grant Geophysical for theProduct: L/M oil exploration potential seismic work.Production: Nil 25
    26. 26. CapitalizationCash position (December 31, 2011): $14 millionDebt (December 31, 2011): Factoring Loan (maturing October 2012) $5.1 million Bank term loans (maturing May/ August 2013) $6.6 million 9% Senior Notes ( $10.4MM maturing May CA$31.1 million2014)Share price (April 10, 2012): CA$1.48Shares outstanding: 147.1 millionOptions outstanding ($2.16 average) 13.7 millionWarrants outstanding ($3.50) 19.0 millionFully diluted: 174.8 millionMarket capitalization - undiluted (April 10, 2012): CA$217.7 million 26
    27. 27. PetroMagdalena is in the right country, focused in the right basin120 80% Oil opportunities are significant, proven reserves of Success Factor100 60% over 2 billion barrels 80 July 2011 60 40% 500% increase in exploration activity – 50% success 40 20% Consistently high exploration success in Colombia 20 0 0% has encouraged investment - key success factor for future opportunities 2011 2004 2005 2006 2007 2008 2009 2010 Most secure Latin American country to do business (1) Number of Wells (2) (1) World Bank, Doing Business 2010 and 2011 Reports Number of wells Success factor (2) ANH Report 27
    28. 28. Leadership team Management 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 Aboud Nelson OrtizExploration ManagerPeter Volk, LL.B. 28General Counsel & Secretary
    29. 29. Appendix 29
    30. 30. Valuation Gap Colombian E&Ps are trading at compressed multiples relative to 160 International E&P companies = growing value gap 150 140 130 120 110 Index Level WTI Spot 100 90 80 70 60 50 40 30 WTI Spot Colombian E&P* International E&P** S&P/ TSX Energy Index S&P/ TSX Composite Index Value GapSource: Bloomberg; January 4, 2011 – April 10, 2012*Colombian E&P: Azabache Energy Inc, Anatolia Energy Corp, Brownstone Energy Inc, C&C Energia Ltd, Canacol Energy Ltd, Sintana Energy Inc, Gran Tierra Energy Inc, LoonEnergy Corp, Pacific Rubiales Energy Corp, Parex Resources Inc, Petro Andina Resources Inc, Petrodorado Energy Ltd, Petrolifera Petroleum Ltd, PetroMagdalena Energy Corp,Abacan Resource Corp PetroNova Inc, Petro Vista Energy Corp, Quetzal Energy Ltd, Sagres Energy Inc, Stetson Oil and Gas Ltd, Shear Diamonds Ltd, Talisman Energy Inc, VastExploration Inc, and Petroamerica Oil Corp.**International E&P: Antrim Energy Inc, Enhanced Oil Resources, Inc Bankers Petroleum Ltd, Bengal Energy Ltd, BNK Petroleum Inc, Candax Energy Inc, Caspian Energy Inc, CazaOil & Gas Inc, Coastal Energy Co, Falcon Oil & Gas Ltd, Encana Corp, Epsilon Energy Ltd/Canada, Heritage Oil PLC, Husky Energy Inc, Ithaca Energy Inc, Ivanhoe Energy Inc, JuraEnergy Corp, Energulf Resources Inc, Niko Resources Ltd, NiMin Energy Corp, TAG Oil Ltd, TransAtlantic Petroleum Ltd, TransGlobe Energy Corp, Vermilion Energy Inc, East WestPetroleum Corp, Eco Atlantic Oil & Gas Inc, Emerald Bay Energy Inc, Patriot Petroleum Corp, and North Sea Energy Inc. 30
    31. 31. Assets in the most prolific basins (2) (2) Area Operator Gross Acres WI Contract Stage Product StatusLlanos Basin Cubiro PMD 61,509 60.5-70-57.13% ANH E&P Light Oil Core Asset Arrendajo Pacific Stratus 60,252 67.5% ANH Exploration Light Oil Near Cubiro* La Punta Vetra 18,913 Up to 6% ECP E&P Light Oil Under review Yamu WOGSA 15,534 10% ANH Prod & Exp Light Oil ProducingCatatumbo Basin Carbonera Well Logging 41,506 100% ANH E&P Oil & Gas Farm-Out 15% / 50% Catguas Gran Tierra 330,354 (1) 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 in Mompos 12,558 58% ECP E&P Light Oil Silla placeMagdalena Basin Las Quinchas Pacific Stratus 124,493 24.5% ECP E&P H Oil To Be Sold Rio Magdalena Gran Tierra 36,131 56% ECP E&P Gas/Cond/ Oil JV or Farm-OutPutumayo 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) After Farm Out WI retained is 4.5% S/15% N. (2) Subject to ANH /ECOPETROL approvals. * Working interest reflects acquisition of PRE’s 32.5%, subject to ANH approval. Yellow background = Core portfolio assets 31
    32. 32. PMD Today Track Record of Focused on Cash Flow Positive Discoveries and Earnings Quality Production Growth• Doubling of revenues: $86 • 4 discoveries at Cubiro in • Increase in NPV (1), at million in 2011 up from 2011 Cubiro of 180% to $383 $44 million in 2010 • 1 discovery at Cubiro YTD million• 100% funded 2012 2012 • 55% improvement in exploration program • Increase in 2011 exit rate netbacks year over year (4,181 boed) production of • 4 quarters of production 76% over 010 (2,374 boed) and netback increases 32(1)NPV before taxes discounted at 10%
    33. 33. Planned Exploration Program 2012Exploration overview 2012• 6 exploration wells planned for Cubiro, 3 drilled in Q1 – Cernicalo-1ST on production• 1 exploration well for Arrendajo, Arrendajo Norte – dry hole• 1 exploration well for Carbonera , Cantaclaro-1X• 1 exploration well for Santa Cruz 2012 Well name Quarter Cubiro Block Cernicalo-1ST (formerly named Cernicalo-2X) 1 – on production Tijereto Sur-1X 1 - testing Alondra-1X (formerly named Turpial-1X) 1 – dry hole Petirrojo Sur-1X 2 Copa C-1X 4 Copa A Norte-1X 4 Arrendajo Block Arrendajo Norte-1X 1 – dry hole Carbonera Block Cantaclaro-1X (formerly named San Roque-1X) 1 Santa Cruz Block Santa Cruz-1X 2 - testing Santa Cruz-2X (contingent) 4 33
    34. 34. 2012 Development ProgramDevelopment overview 2012• 10 Llanos development wells planned for Cubiro 2012 Well name Quarter Cubiro Block Well Type WI COPA-4 Single 57.13% Q2 COPA-5 Dual 57.13% Q2 PETIRROJO-4 Single 70.00% Q2 COPA-ASUR2 Dual 57.13% Q2 COPA-B2 Dual 57.13% Q3 COPA-B3 Dual 57.13% Q3 YOPO-2 Dual 70.00% Q3 COPA-ASUR3 Dual 57.13% Q4 PETIRROJO-5H Horizontal 70.00% Q4 COPA-6 Single 57.13% Q4 34
    35. 35. 2010 ANH Bid Round - Six E&P Assets • Agreement for funding the exploration commitment, resulting in PetroMagdalena holding a 6% Working Interest on COR 33, VMM 11 and VMM 35 and 5% WorkingVMM 35 Interest on the other three in place.VMM 11 LLA 41COR 33VSM 12VSM 13 MIDDLE MAGDALENA VALLEY BASIN CORDILLERA BASIN UPPER MAGDALENA VALLEY BASIN LLANOS BASIN 35
    36. 36. Colombian Pipeline Infrastructure 36

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