And we are convinced that despite the fact that there is a considerable amount of news about it, Colombia is still one of the most attractive countries in terms of fiscal and potential. We also think we are in the right place in the country. We have a very exciting portfolio in front of us in terms of the Arrendajo, Cubiro and LLA-47. We think the Catatumbo Basin has got huge upside potential. We are excited about getting started in the Putumayo, and we can drive this ship from the production base that we have established in the Llanos. A country that has got a 50% success rate and we still have the opportunity to 2 and 3 million barrels consistently with larger plays in the other basins is one of the reasons why we are focused on Colombia.
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 “to be”, “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
Building On Our SuccessFocus on organic cash flow opportunities in our portfolioEnhance netbacks, reduce costs, increase efficiencyIncrease development activity in 2012 in the Llanos Basinfollowing exploration successMaximize value from all assets in our portfolio – leveragerelationships with strong partnersIdentify production growth opportunities in Colombia HIGH IMPROVING EXPERIENCED POTENTIAL DRIVING OPERATING LEADERSHIP EXPLORATION VALUE CASH FLOW ASSETS Goal is to increase production and reserves 3 3
PetroMagdalena is in the right country, focused in the right basin Oil opportunities are significant, proven reserves of over 2 billion barrels(1) 500% increase in exploration activity – +50% success(1) Consistently high exploration success in Colombia has encouraged investment - key success factor for future opportunities Most secure country in Latin American in which to do business (1) 120 70% Number of Wells Drilled 100 60% (2) Success Factor 50% 80 40% 60 30% 40 20% 20 10% 0 0% 2004 2005 2006 2007 2008 2009 2010 2011(1) World Bank, Doing Business 2010 and 2011 Reports(2) ANH Report Number of wells Success factor 4
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 2011 • Increase in NPV (1), at Cubiro million in 2011 up from $44 • 1 discovery at Cubiro and 1 at of 180% to $383 million million in 2010 Arrendajo YTD 2012 • Q1 2012 is the 4th• 100% funded 2012 exploration • Increase in 2011 exit rate(2) consecutive quarter of program (4,181 boed) production of production improvement 76% over 2010 • Q1 2012 is the 5th consecutive quarter of netback improvement(1) NPV before taxes discounted at 10%. Source: NI 51-101 Technical Report, Petrotech Engineering, December 2009, December 2010 and December 2011. Reserves before royalties based on working interest 5(2) Exit rate presented is the average production rate for December, being the last month of the year.
Diversified Portfolio CATATUMBO BASIN • Santa Cruz (3) • Carbonera • Catguas (4) LLANOS BASIN • Carbonera-La Silla (2) • Cubiro (1) • Arrendajo (2) • LLA 47 • Yamu • La Punta PUTUMAYO BASIN • Mecaya (4) • TopoyacoAgreements subject to ANH or Ecopetrolapproval(1) Operated by Alange, Corp. a wholly owned subsidiary.(2) Operated by Pacific Stratus., a wholly owned subsidiary of Pacific Rubiales BLUE blocks:(3) Operated by Mompos Oil and Gas, a 2010 ANH E&P blocks wholly owned subsidiary.(4) Operated by Gran Tierra 6
43% increase in 2P oil reserves$145 Million increase in 2P NPV (1) 2011 provided higher 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 30 394,039 25$400,000 358,884 20 15$200,000 10 13.3 5 9.3 6.6 $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 7
Production 2012 guidance of 4,300 – 4,700 boed 6,000 4,300 – Production (BOEPD) 4,700 boed 4,000 3624 3847 2713 2,000 2286 2410 0 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 2012 Production Production Forecast* Cernicalo-1ST put on production February 25th, 2012* Azor-1X put on production January 31st, 2012 8
It’s All About Brent Now $150 $130 Q1 2012 Avg. oil sales price = $110 $113.50 per barrelUSD $90 $70 $50 Brent linked to Vasconia $30 Source: Bloomberg Brent WTI Vasconia • Leveraging marketing strategy to capture positive premium to WTI. • 1st quarter 2012 premium to WTI was approximately $10 per barrel. 9
Cubiro’s Netback• A 3-year conventional oil marketing agreement signed with Pacific Rubiales on Feb. 1st, 2011• A six (6) month oil sales purchase agreement signed with Ecopetrol on May 4th, 2012• Lower Trucking costs expected for deliveries to Cusiana or Bicentenario, would positively impact netback 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) Client - Delivery Point / Reference Price : Rubiales/ Araguaney / Guaduas / Vasconia Q4 - 2011 Q1 - 2012 (3) MAY 2012 (1) WTI Average (Nymex) 93.23 102.16 92.21 Benchmark Quality Adjustment 14.14 11.13 10.80 Royalties (2) -8.21 -7.06 -7.00 Net Revenue 99.16 106.23 96.01 Production Costs -19.20 -11.81 -12.00 Transportation & pipeline -18.63 -14.19 -21.00 Operating Netback 61.33 80.23 63.01(1) Management estimates, as of May 29th, 2012.(2) Royalties presented on a per barrel of oil basis. ANH royalty oil is taken in kind at the wellsite.(3) Production Costs and Transportation & Pipeline Costs presented are the average for Q1 2012. 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 Operating Netback per G&A per barrel sold barrel $100.00 $25.00 $90.00 $80.00 43% $20.00 39% $70.00 $74.66 $18.40 $60.00 $15.00 $50.00 $52.27 $40.00 $10.00 $11.20 $30.00 $20.00 $5.00 $10.00 $- $- 11 Q1 - 2011 Q1 - 2012 Q1 - 2011 Q1 - 2012
2012 Work Program Overview• Revised budget with capital expenditure estimated in range of $75 to $80 million• 65% planned to be directed to light oil exploration and development in Cubiro and Arrendajo• 2012 Work program to be funded from cash from operations, cash balances, proceeds from non-core assets dispositions and banking facilities to manage working capital as required• Facility program to replace rental facilities and reduce OPEX. Preparing to install low cost natural gas generator for generating field power and replacing diesel• To date in 2012, drilled 5 exploration wells and 1 development well• 10 development wells planned for the balance of 2012, with 3 exploration wells in Q4 in the Llanos Basin• The next 6 months are focussed on development drilling to grow production 12
Annual Cash Flow 2011A 2012E (1) 2,761 Average daily production for the year (gross before royalties) 4,300-4,700 boed boed Cash flow from operating netbacks (4) $54.3M (3) $102M (2) Less: G&A $14.7M $18M Less: Debt service (principal & interest) $18.4M $24 (5) Less: Equity tax instalments $2.1M $ 2M Net cash flow from operations $19.1M $58M Cash position, beginning of year $6.5M $14M Cash available from equity financing for work program $35.0M - New Cash Financing $15M (7) Other sources/ (uses), including working capital changes and $10.4M - (1) cash from asset dispositions Total cash available to fund annual work program $71.0M $87M ANNUAL WORK PROGRAM EXPENDITURES $56.9M (6) $75 - $80M(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) 13 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.(7) Includes $11million borrowed in March 2012 and additional $10 million potential borrowing in 2012, net of amount to be replaced in 2012
Llanos Basin Recoverable Oil More than 1,500 MMbbl of recoverable Arrendajo oil has been officially documented in this basin (2) Cubiro Reserves Cubiro Reserve Category Gross L&M Crude Oil (Mbbl) (1) Proved 5,564 LLA-47 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 (2) ANH 14
Llanos Basin - Cubiro CUBIRO Producing Field Prospect Palmarito Highlights C7 40 API • Operated by PetroMagdalena • 4 discoveries in 2011, 1 YTD 2012 Careto Alondra Q1 -2012 Yopo, Q4-2011 • The Cubiro Block has been under an E&P Contract Arauco Barranquero Petirrojo Sirenas C5 with ANH since October 8, 2004. Exploration phase 37 API followed by a 25 year production period. Petirrojo Sur Q2 - 2012 Cernicalo Q1-2012 Sirenas Canario Sur MAIN FACILITY AT CARETO Guanapalo Copa C7 Tijereto Sur Copa A Norte 30 API Q1-2012 Q4-2012 Copa A Sur Copa BJordán Altair Copa C, Q4-2012 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
Petirrojo & Yopo Fields,Petirrojo Sur Prospect Carbonera C7 TWT Seismic MapDEVELOPMENT• Two development wells in 2012, one in Petirrojo and one in Yopo. Yopo Field• Petirrojo-1X cumulative production block over 240,000 bbls 40 API oil produced• Developed a plan in order to replace rented facilties to reduce Opex EXPLORATION• Petirrojo Sur-1X exploration well will be drilled in Q4-2012, civil work was completed in Q1 2012. Petirrojo Field CURRENT TECHNICAL REPORT 2P RESERVES (Mbbls) (1) Petirrojo-1 Petirrojo 1,569 Yopo 1,415 Petirrojo Sur-1X Prospect 1 Km(1) Reserves before royalties based on working interest 16 Source: NI 51-101 Technical Report, Petrotech Engineering, December 2011
Copa, Copa A & Copa B 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 is COPA FIELD planned to determine reservoir limits.• Copa-5 planned 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 Copa B 1,379 COPA B FIELD Copa A Sur 2,375 1 Km(1) Reserves before royalties based on working interest 17 Source: NI 51-101 Technical Report, Petrotech Engineering, December 2011
Copa, Copa A & Copa AS FieldsCarbonera C7 TWT Seismic Map 2P RESERVES Dec 31, 2011 Petrotech Technical Report (Mbbls) 100% Gross Net Copa Field Copa Field 2,991 1,709 1,572 Copa A Norte Q4-2012 Copa A Sur 4,157 2,375 2,185 Copa B 2,570 1,468 1,352 Copa A Sur 9,718 5,552 5,109 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
Llanos Basin – Arrendajo Highlights • Arrendajo is 7 km NE of the Cubiro block • Operated by Pacific Rubiales Energy Corp. • 120 km2 of 3D survey completed in April 2011, interpretation shows 6 light oil prospects on trend with producing oil fields • Azor discovered in January 2012 and was initially put on production on January 31, 2012. • Four exploration prospects in the Carbonera formation have been identified for Drilling: Yaguazo, Arrendajo Sur, Mirla Blanca, and Mirla Oeste • 3D seismic required to map complete trend, expected to be acquired in 2013.Operator: Pacific Stratus Energy Colombia (1) • PetroMagdalena acquired 32.5% additionalWI: 67.5% working interest, from Pacific Rubiales inContract: subject to ANH approval November 2011, subject to ANH approval, for $10Product: Light Oil million to be paid out of production.Area: 78,102 acres 19(1) A wholly owned subsidiary of Pacific Rubiales Energy Corp.
Arrendajo Block Azor discovery - Upside Highlights • Azor-1X was drilled and completed on January 31, 2012. The well tested at 870 bopd. Average production for March and April 2012 was 830 bopd natural flow adding 560 bopd to PetroMagdalena’s gross working interest production. • Three development locations identified on the Azor structure planned to be drilled in the second half of 2012. • Mirla Negra-1X drilled in 2008, tested oil and water in the C5 but was not declared commercial. • Azor Sur exploration prospect identified south of Azor and north of the low quality sands encountered in Arrendajo Norte-1X and Arrendajo Norte-1ST. 20
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 on the LLA-47 Block • 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 expected • 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
Update map Catatumbo Basin Catatumbo Basin About Catatumbo Located in northwest Colombia, the Catatumbo Basin Catguas has high potential exploration targets. It is the western extension of the very prolific Maracaibo basin in Venezuela Highlights Carbonera La Silla Carbonera: 100% working interest, subject to ANH approval. MOU signed with YPF to farm out 60%. Santa Cruz: 70% working interest. Carbonera La Silla Block: 58% working interest, an Carbonera Ecopetrol association contract. Mompos is the operator. Santa Cruz Catguas: MOU signed with YPF to farm out 70%. Northern area: 50% working interest. Southern area: 15% working interest; Gran Tierra is the operator.(1) Wholly owned Subsidiary of Gran Tierra Energy 22(2) Wholly owned subsidiary of PetroMagdalena.
To be summarized andPutumayo Basin - Mecaya organized like slide 24 About Putumayo • Putumayo Basin is located in southwest Colombia • High potential exploration targets Highlights • Partnered with experienced operators. Mecaya • PetroMagdalena has a beneficial 58% 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 & Mecaya • PetroMagdalena has a 50% working interest inContracts: ANHOperator: the Topoyaco Block, subject to the ANH Mecaya – Gran Tierra approval, with a 6% overriding royalty to WI: 43%, subject to ANH approval Trayectoria. In addition, there is a 3.5% profit Topoyaco – Pacific Rubiales WI: 50%, subject to ANH approval interest payable to Grant Geophysical for theProduct: L/M oil exploration potential seismic work.Production: Nil 23
Capitalization Cash position (March 31, 2012): $3.7 million Debt (March 31, 2012): Factoring Loan (maturing October 2012) $4.1 million Bank term loans (maturing June/September 2013) $6.2 million Bank term loan (maturing March 2015) $11.2 million 9% Senior Notes (maturing May 2014) C$31.1 million(1) Share price (June 4, 2012): C$1.25 Shares outstanding: 149.2 million Options outstanding ($2.16 average) 13.7 million Warrants outstanding ($3.50) 19.0 million Fully diluted: 174.8 million Market capitalization - undiluted (May 30, 2012): C$163 million(1) $10.4 million repaid in May 2012. 24
Leadership Team Head office Management Directors333 Bay Street, Suite 1100 Luciano Biondi Jaime Perez BrangerToronto, Ontario M5H 2R2 Chief Executive Officer Executive Chairman Gregg K. Vernon, P. Eng. Robert Metcalfe Colombia office Chief Operating Officer Lead Independent DirectorCalle 95 No. 13-35/43 Piso 4 Michael Davies, C.A. Miguel de la CampaBogota, D.C., Colombia Chief Financial Officer Serafino Iacono Francisco Bustillos, M.Sc.Investor Relations Colombian Finance & Ian MannInvestorrelations@ Administration Manager Luis Miguel Morellipetromagdalena.com Jesus Aboud Nelson Ortiz Exploration Manager Peter Volk, LL.B. General Counsel & Secretary 25
Valuation Gap Colombian E&Ps are trading at compressed multiples relative to 140 International E&P companies = growing value gap 140 120 120 100 100 WTI Spot 80 80 Index 60 60 40 40 20 20 0 0 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Colombia E&P* International E&P** S&P/ TSX Energy Index S&P/ TSX Composite WTI Spot Value GapSource: Bloomberg; January 4, 2011 – May 23, 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. 27
Assets in the most prolific basins (2) Gross (2) Area Operator WI Contract Stage Product Status AcresLlanos 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 Producing LLA-47 Interoil 44,676 50% ANH Prod & Exp Light Oil Near CubiroCatatumbo Basin Carbonera Well Logging 41,506 100% ANH E&P Oil & Gas Under Review 15% / 50% Catguas Gran Tierra 330,354 (1) ANH Exploration Oil & Gas Under Review 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 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 58% ANH Exploration L/M Oil 3D seismic planned(1) After Farm Out to YPF WI retained would be 4.5% S/15% N. (2) Subject to ANH /ECOPETROL approvals. 28* Working interest reflects acquisition of PRE’s 32.5%, subject to ANH approval. Yellow background = Core portfolio assets
2010 ANH Bid Round - Six E&P Assets • Agreement with third party for funding the exploration commitment, resulting in PetroMagdalena holding a 6% Working Interest on COR 33, VMM 11 and VMM 35 VMM 35 and 5% Working Interest on the other three blocks. VMM 11 LLA 47COR 33VSM 12VSM 13 MIDDLE MAGDALENA VALLEY BASIN CORDILLERA BASIN UPPER MAGDALENA VALLEY BASIN LLANOS BASIN 29