CORPORATE PRESENTATION January 2013

CORPORATE PRESENTATION
March 2013
www.platinoenergy.com
Platino is Not a Typical Colombian Exploreco

No need to raise additional capital

3 to 4 drill-ready prospects & work-overs in 2013

Value transferred from prior geoscience,
civil and seismic work

Low ANH commitments & attractive block terms

Proven team from C&C
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2
Platino History
Platino was formed as a spin out from the acquisition of
C&C Energia Ltd. by Pacific Rubiales Energy Corp.
Putumayo Basin
3 Blocks
Middle Mag Basin
1 Block
Cash
$88.5 MM(1)
Llanos Basin
5 Blocks
Platino Shares
5% ownership in Platino
1. Subject to final closing settlement adjustments
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3
Why Colombia?
Colombia is a globally significant energy producer
• Increased security efforts
• Access to global energy
markets
• Stable macroeconomic policies
• Policy focused on attracting
foreign investment and trade
• Clearly defined fiscal terms
• Significant resource potential
Colombia Daily Oil Production (BOPD)(1)
914
941
2011
2012
785
671
525
529
531
2005
2006
2007
588
2008
2009
2010
1. Source: Agencia Nacional de Hidrocarburos (“ANH”)
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4
Proven Long-Term Track Record
Platino’s team has a history of delivering significant growth
C&C History
Avg. Production BOPD
2P Reserves(1) MMBO
14,000
12,000
20
1st company
prod’n at
Cravoviejo
prod’n at
Cachicamo
1st
IPO
18
Sale to Pacific
Rubiales
18
16
10,000
15
14
12
8,000
12
10
10
6,000
8
6
6
4,000
4
2,000
2
0
0
2007
2008
2009
Production (BOPD)
2010
2011
2012
Reserves (MMBO)
1. All reserve information as at December 31 of applicable year. Reserve evaluations for 2009 – 2011 performed by Lonquist & Co. LLC and qualify in accordance with NI 51-101. Reserve evaluations for 2007 and
2008 performed by Gaffney, Cline & Associates Inc. in accordance with U.S. reporting standards. See “Advisory – Legal Advisories”.
www.platinoenergy.com
5
Exploration Asset Overview
Coati
W.I.: 100%(1)
Gross Acres: 61,840
Net Acres: 61,840
Operator: Platino(2)
Basin: Putumayo
Morpho
Coveñas
PANAMA
VENEZUELA
Middle
Magdalena
Basin
Bogota
Putumayo-8
W.I.: 50%
Gross Acres: 102,800
Net Acres: 51,400
Operator: Vetra
Basin: Putumayo
W.I.: 50%
Gross Acres: 51,420
Net Acres: 25,710
Operator: Platino(2)
Basin: Middle
Magdalena Valley
Llanos
Basin
Tumaco
Andaquies
Putumayo
Basin
ECUADOR
BRAZIL
W.I.: 64%
Gross Acres: 114,875
Net Acres: 73,520
Operator: Platino(2)
Basin: Putumayo
PERU
200km
100 mi
1. Working interest will be reduced to 60% upon Canacol Energy Ltd. (“Canacol”) earning-in in accordance with Farm-in Agreement
2. Subject to approval of the ANH
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6
Capital Program
Platino will spend minimal capital to test potentially
significant oil accumulations
2013 Capital Investment vs. Potential
2013 Activity Profile
$10
Coati
Investment ($ MM)
Q1
Q2
Q3
PUT-8
Q4
Q1
Q2
Q3
Andaquies
Q4
Q1
Q2
Q3
Q4
Morpho
Q1
Q2
Q3
Q4
Seismic
Geo
Analysis
$5
Civil
Drilling/
Work-overs
Testing
$0
Coati
www.platinoenergy.com
PUT-8
Andaquies
Morpho
7
ANH Commitments
Platino has only $8 MM of ANH committed spending
remaining on its exploration blocks
Coati
Putumayo-8
Andaquies / Morpho
Work Program
1 exploration well
1 exploration well and
112 km2 3D seismic
nil
Gross Commitment
$4 MM
$14 MM
nil
Net Commitment
$1 MM
$7 MM
nil
Gross Commitment
Net Commitment
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Coati
Putumayo-8
$18 MM
$8 MM
8
Financial and Operational Snapshot
Financial
Basic Shares Outstanding
Options Outstanding(1)
Fully-Diluted Shares Outstanding
Net Acreage
67.9 MM
3.4 MM
71.3 MM
Gross Acreage
330,935
212,470
279,515
Share Price (March 7, 2013)
Market Capitalization (Basic Shares)
Estimated Net Cash(2)
C$1.41
C$96 MM
$80 MM
186,760
51,420
25,710
Middle Magdalena Valley
Key Shareholders
Denham Capital(3)
ARC Financial
Pacific Rubiales
Management and Directors
Total
1.
2.
3.
4.
Putumayo
Operational
25%
11%
5%
2%
43%
Gross Acres
Avg. Working Interest
Net Acres
Employees
330,935
64%(4)
212,470
~30
At a strike price of $1.33 per Platino share
Estimated net cash based on $88.5 MM transferred at closing of the plan of arrangement between Platino, C&C and Pacific Rubiales and subject to final closing settlement adjustments
Through its wholly-owned subsidiary , C&C Investment Holdings LLC
Working interest will be reduced to 57% upon Canacol earning-in ion the Coati block in accordance with Farm-in Agreement
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9
2013 Planned Capital Investment
Budget by Category ($ MM)
Testing
$2.5
Budget by Block ($ MM)
Seismic &
Geo Analysis
$0.5
Andaquies
$0.5
Morpho
$7.0
Putumayo-8
$8.0
Civil
$5.0
Drilling &
Work-overs
$13.0
Coati
$5.0
Total Exploration Activities
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$21 MM
Total Exploration Activities
$21 MM
10
Putumayo Basin Overview
Platino Blocks
Putumayo Basin
50 km
Producing Areas
N
Exploration Areas
Existing Fields
Topoyaco
Chaza
Santana
Guayuyaco
Azar
CAG-6
PUT-3
Maranta
PUT-1
PUT-2
PUT-10
Orito
Piedemonte
Sur
Las
Aguilas
Area
Occidental
PUT-4
NBM(1)
Alea
1848-D
PUT
PUT-8
Rumiyaco
Platanillo
NorAlea
oriente 1947-C
PUT-25
Macaya
PUT-9
Terecay
PUT-12
Suroriente
PUT-7
PUT-6
Ecuador
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Coati
PUT-13
PUT-14
• Putumayo-8:
surrounded by
producing fields on
the Platanillo and
Suroriente blocks
• Coati:
on trend with
several large fields
in Ecuador as well
as the Orito field in
Colombia
• Andaquies:
on trend with
several large
discoveries to the
southwest
11
Coati Block Tilted Oil-Water Contact
Ch-1
Commentary
• Coati-1 well to be drilled in mid 2013
• Access agreement reached with
indigenous community, environmental
permits in place and civil works have
commenced
T1V T1X Coati 1
Na-1
Coati
• Coati block covered by 2D seismic and
planning a further 3D seismic program
pending results of Coati-1
• One structural hydro-dynamically assisted
closure in Coati-1
• Main reservoir target is the Caballos with
secondary targets in the Villeta sandstones
• Prospect is within 10 km of major
producing fields: Hormiga, Puerto ColonLoro and Acae-San Miguel
Temblon-1V
Temblon-1X
Coati-1
Villeta FM N Sand
Villeta FM U Sand
Villeta FM T Sand
Caballos Fm
Water flow direction
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12
Coati Block Log Analysis
Temblon-1V
Lateral
connectivity
ensured by
interference test
Tested 50
BWPD and 1
BOPD
(32° API)
Temblon-1X
COATI-1
prognosis
Open-hole tested: 120
BOPD,
from scraped
cemented open hole,
50 ft of gross pay
Expected 80
ft. of gross
pay oil
column
Tilted
OWC, 1°
NE
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13
Putumayo-8 Block Orientation
2012 3D
seismic
shoot
Commentary
• 1st exploration well to be drilled in late 2013
• Located adjacent to Amerisur’s recently
discovered Platanillo field ~18° - 30° API oil
Platanillo
Field
(Amerisur)
• 2011 year end 2P reserves  7.7 MMBO(1)
• 69 MMBO of P50 prospective resource(1)
• Completed acquisition and processing of 95 km2
3D seismic
• 3 potential reservoirs in the Cretaceous
• Closures part of a general N-S trend
• 1st exploration well targeting 3 stacked reservoirs
(U,T and N sands)
• Target well depth of ~10,500 feet
10 km
1. Amerisur Investor Presentation – June 2012. Reserves estimate as of December 31, 2011 as reported by independent reserves auditor.
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14
Putumayo-8 Block Geology
Commentary
• U and T sands are primary targets with ~40 feet of relief
• Shallower secondary N sand target with ~30 feet of relief
• Some potential for shallower Pepino formation
• Like Platanillo, the fault is on the east side of the structure
A
A
A´
A´
W
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Block Boundary
E
15
Andaquies Block Overview
Commentary
Potential 3D seismic
• C&C drilled 2 prospects in 2012 at
Cachalote and Tardigrado
• Both wells encountered Caballos
reservoir but produced only fresh
water with slight traces of heavy oil
• Test data suggests Tardigrado well
may have been drilled on a downdip location
• Drilling was based on sparse 2D
data
• 2013 work plans encompass reevaluation of the Tardigrado
prospect
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16
Middle Magdalena Valley Basin Overview
Middle Magdalena Valley Basin
VMM 6
(1)
N
Las
Quinchas
VMM 9
VMM 10
Opon
COR 18
(2)
VMM 1
De Mares
VMM 11
VMM 21
VMM 26
(2)
COR 59
Platino Block
Producing Areas
VMM 12
VMM 22
COR 52
VMM 13
Turpial
• Mature basin with significant
production
Exploration Areas
• Untapped potential in unconventional
plays
• Recent M&A activity saw the
entrance of several majors (eg.
ExxonMobil, Shell) chasing the La
Luna source rock
• Key reservoirs are Esmeraldas-La
Paz, Colorado and Mugrosa
Morpho
Bocachico
Rio Horta
COR 51
VMM 16
COR 53
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17
Morpho Block Geology
Commentary
• Working with partner Parex on development plan
• Contemplating work-overs vs. exploratory wells for 2013
• Produced 38° API oil from one reservoir with no declines, no increase in water or
GOR for most of 2011
• Low permeability, large oil resource within large anticline
• Previously encountered 4 reservoirs with gross oil column of 80-100 feet in the
Colorado formation
Morpho Play
Concept
Oil Seeps
W
Abundant
Oil Seeps
Velásquez Field
E
Real Fm.
Central
Cordillera
Basement
Colorado Fm.
Mugrosa Fm.
Chorro Gr.
Girón Fm.
La Luna Fm.
Cretaceous
5km
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18
Corporate Information
Management
Tomas Villamil
Andrés Modarelli
Tyler Rimbey
Cesar Vasquez
President & CEO
VP Finance & Interim CFO
VP Business Development
VP Exploration
Board of Directors
Carl Tricoli
Andrew Evans
Larry Evans
Tomas Villamil
Auditors
Deloitte LLP
Lonquist & Co., LLC
Financial
Reserves
Co-President, Denham Capital
SVP, ARC Financial Corp.
Partner, 32 Degrees Capital
President & CEO, Platino
Investor Relations
Tyler Rimbey
VP Business Development
[email protected]
Corporate Office
Colombia Office
Suite 1250, 555 – 4th Avenue SW
Calgary, AB, Canada
T2P 3E7
+1(403) 262-6046
Carrera 4, No. 72-35, Piso 8
Bogota, Colombia
+57 (1) 235-0007
www.platinoenergy.com
19
Block Summary
Coati
Putumayo-8
Andaquies
Morpho
Putumayo
Putumayo
Putumayo
Middle Magdalena
61,840 / 61,840(1)
102,800 / 51,400
114,875 / 73,520
51,420 / 25,710
Working Interest
100%(1)
50%
64%
50%
Partner(s)
Canacol
Vetra
Canacol
Parex
Operator
Platino(2)
Vetra
Platino(2)
Platino(2)
ANH E&P Contract
ANH E&P Contract
ANH E&P Contract
ANH E&P Contract
Not finalized
May 18, 2014
August 4, 2013
n/a(3)
1 A3 well
1 A3 well and 207
km2 3D seismic
1 exploration well
n/a
1 A3 well
1 A3 well and 112
km2 3D seismic(4)
None
None
$4 MM gross /
$800 K net
$14 MM gross /
$7 MM net
Nil
Nil
Government Base Royalty
8%
8%
8%
8%
High Price Share
Participation
Yes
Yes
Yes
No
Third Party Royalty
6%
Nil
Nil
6.5%
Additional ANH X-Factor
Royalty
Nil
2%
Nil
Nil
Basin
Gross/Net Acreage
Contract Type
Term of Current Phase
Current Phase Minimum
Work Commitment
Remaining Current Phase
Work Commitment
1.
2.
3.
4.
Working interest will be reduced to 60% upon Canacol earning-in in accordance with Farm-in Agreement.
Subject to ANH approval.
Until the relinquishment of the area by the partners or until the extinction of the natural resource.
The ANH has yet to officially recognize the completed 95 km2 3d seismic program completed in Q4 2012.
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20
Advisory
Forward-looking Information
This corporate presentation contains forward-looking information within the meaning of applicable Canadian securities laws that involves known and unknown risks and uncertainties.
Forward-looking information typically contains statements with words such as "anticipate", "estimate", "expect", "potential", "could", "will", "plans" or similar words suggesting future
outcomes. Platino cautions readers and prospective investors in Platino's securities to not place undue reliance on forward-looking information as by its nature, it is based on current
expectations regarding future events that involve a number of assumptions, inherent risks and uncertainties, which could cause actual results to differ materially from those anticipated
by Platino.
Forward-looking information in this presentation includes, but is not limited to, information concerning the expectations of Platino with respect to Platino's future production and reserve
growth, Platino's drilling plans (including the timelines and costs associated with those drilling plans), Platino's interest in the Coati Block following an earn-in by Canacol, plans and
expectations regarding the completion of certain of Platino's wells, future ANH commitments, Platino's 2013 capital expenditure program and proposed budget, Platino's seismic
program (including the timelines and costs associated with the seismic program), expected future production from such wells and Platino's ability to fund future development programs
from its current cash position, future cash flows or otherwise. These forward-looking statements are subject to assumptions regarding Platino's operations and the operating environment
in Colombia. Platino's drilling and seismic plans are subject to change if circumstances change or if management of Platino determines that other business plans are more appropriate.
Forward-looking information involves significant known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from those anticipated by
Platino including, but not limited to, general risks associated with the oil and gas industry (e.g. operational risks in exploration; inherent uncertainties in interpreting geological data;
changes in plans with respect to exploration or capital expenditures; the uncertainty of estimates and projections in relation to costs and expenses and health, safety and environmental
risks), the risk of commodity price and foreign exchange rate fluctuations, the uncertainty associated with negotiating with the ANH or with other third parties in countries other than
Canada, the risk associated with international activity and certain other risks detailed from time to time in Platino's TSX Venture Exchange listing application and other public disclosure
documents, copies of which are available on Platino's SEDAR profile at www.sedar.com.
The forward-looking information included in this presentation is expressly qualified in its entirety by this cautionary statement. Platino cautions that the foregoing list of assumptions, risks
and uncertainties is not exhaustive. The forward-looking information included herein speak only as of the date hereof and Platino assumes no obligation to publicly update or revise any
forward-looking information to reflect new events or circumstances, except as required by law.
Legal Advisories
All reserve information contained herein relate to C&C Energia Ltd. or its predecessors and is estimated as at December 31 of applicable year. Reserve evaluations for years 2009,
2010, and 2011 performed by Lonquist & Co. LLC in accordance with NI 51-101. Reserve evaluations for years 2007 and 2008 performed by Gaffney, Cline & Associates Inc. in
accordance with U.S. reporting standards. Readers are advised that U.S. reporting standards differ from those contained in NI 51-101, and therefore measures used as between the
applicable periods may not be comparable.
The estimates of reserves for individual properties may not reflect the same confidence level as estimates of reserves for all properties due to the effects of aggregation.
All figures are in U.S. dollars unless otherwise stated.
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21
Corporate Office
Suite 1250, 555 – 4th Avenue SW
Calgary, AB, Canada, T2P 3E7
+1 (403) 262-6046
Colombia
Carrera 4, No. 72-35, Piso 8
Bogotá, Colombia
+57 (1) 235-0007
www.platinoenergy.com
©Copyright Platino Energy Corp. 2013