CORPORATE PRESENTATION

a Colombian exploration company
CORPORATE PRESENTATION
July 2014
www.platinoenergy.com
Platino Strategy
Pursuing transactions to generate near-term catalysts
Management remains focused on:
1) Utilizing Platino’s strong financial position
• March 31, 2014 cash and short-term investments of US$53 MM
(~C$0.84/basic share)(1)
• No debt
• Low ANH commitments
• Reduced annualized G&A run rate of ~$2.5 MM
2) Maintaining the ability to execute quickly on strategic opportunities
3) Developing a prospective long-term portfolio
• Three Putumayo blocks with high working interest
• Proven oil at Coati with activity expected to re-start in Q2 2014
• Minimal required capital spend in 2014 preserves cash for
transactions
1. CAD/USD exchange rate of 1.1055 as at March 31, 2014
www.platinoenergy.com
2
Asset Overview
Coati
W.I.: 100%(1)
Gross Acres: 61,840
Net Acres: 61,840
Operator: Platino(2)
Basin: Putumayo
Morpho
4% Net Profit Interest
Coveñas
PANAMA
VENEZUELA
Middle
Magdalena
Basin
Bogota
Putumayo-8
W.I.: 50%
Gross Acres: 102,800
Net Acres: 51,400
Operator: Vetra
Basin: Putumayo
Basin: Middle
Magdalena Valley
Llanos
Basin
Tumaco
Andaquies
Putumayo
Basin
ECUADOR
BRAZIL
W.I.: 100%
Gross Acres: 114,875
Net Acres: 114,875
Operator: Platino(2)
Basin: Putumayo
PERU
200km
100 mi
1. Working interest will be reduced to 80% upon Canacol Energy Ltd. (“Canacol”) earning-in in accordance with farm-in agreement
2. Subject to approval of the ANH
www.platinoenergy.com
3
Block Activity Profile
Environmental licensing process has resulted in exploration drilling delays
Activity Description & Timing
Block
Coati
Putumayo-8
Andaquies
Working
Interest
100%(1)
50%
100%
Activity
Expected Timing
•
Coati-1 re-entry to produce U-sand
•
Q2 2014
•
Environmental license process
•
Q2 2014 to Q3 2015
•
Drill Nasua exploration well
•
Q4 2015
•
Environmental license process
•
Q2 2014 to Q3 2015
•
Drill 1st exploration well
•
Q4 2015
•
Evaluating further exploration plans
•
As early as Q3 2014
1. Working interest will be reduced to 80% upon Canacol earning-in in accordance with farm-in agreement
www.platinoenergy.com
4
ANH Commitments
Platino has only $10 MM of net ANH committed spending
remaining on its exploration blocks
Coati
Putumayo-8
Andaquies
Remaining Work
Program
1 exploration well
1 exploration well and
112 km2 3D seismic
nil
Gross Commitment
$3.5 MM
$14.4 MM(1)
nil
Net Commitment
$2.8 MM
$7.2 MM
nil
Gross Commitment
Net Commitment
Coati
Putumayo-8
$18 MM
$10 MM
1. Management expects this amount to be reduced by $7.0 MM gross / $3.5 MM net upon the ANH recognizing the 95 km2 seismic survey completed in 2012. This is expected in the next three months.
www.platinoenergy.com
5
Financial and Operational Snapshot
Financial
Net Acreage
Basic Shares Outstanding
Options Outstanding(1)
Fully-Diluted Shares Outstanding
69.5 MM
4.9 MM
74.4 MM
Share Price (May 12, 2014)
Market Capitalization (Basic Shares)
Net Cash (Mar 31, 2014)
C$0.64
C$45 MM
$53 MM
Gross Acreage
279,515
228,115
Putumayo
Key Shareholders (fully diluted)
Denham Capital(2)
ARC Financial
Management and Directors
Total
Operational
22.6%
9.8%
7.6%
40.0%
Gross Acres
Average Working Interest
Net Acres
Employees
279,515
82%(3)
228,115
~15
1. At a weighted average exercise price of C$1.00 per Platino share
2. Through its wholly-owned subsidiary , C&C Investment Holdings LLC
3. Average working interest will be reduced to 77% upon Canacol earning-in on the Coati block in accordance with the farm-in agreement
www.platinoenergy.com
6
2014 Planned Spending
Commentary
• Coati
Block Capex (US$ MM net to Platino)
$3.7
−
Install temporary production facilities at
Coati-1 to produce U-sand
−
Costs associated with global
environmental license
• Putumayo-8
−
$3.0
Costs associated with global
environmental license
Estimated 2014 Full Year
Coati
$0.7
1. CAD/USD exchange rate of 1.1055 as at March 31, 2014
www.platinoenergy.com
Put-8
(US$MM)
Lower
Spend
Higher
Spend
Capital Expenditures
($3.5)
($5.0)
G&A Expenditures
($3.0)
($4.0)
2014 Change in Cash
($6.5)
($9.0)
Est. 2014 Year End Cash
$48.2
$45.7
~CAD $0.77 to $0.69/share(1)
7
Putumayo Asset Map
Andaquies
-
100% W.I.
Operated
C&C Energia Ltd. drilled
Tardigrado-1 and Cachalote-1
wells in 2012
Putumayo-8
-
Coati
-
50% W.I.
Non-operated
Vetra is partner and operator
Partners completed 95 km2 3D in
2012
100% W.I.(1)
Operated
Platino drilled Coati-1 exploration well
(2013) after several year force majeure
period
1. Working interest will be reduced to 80% upon Canacol Energy Ltd. (“Canacol”) earning-in in accordance with farm-in agreement
www.platinoenergy.com
8
Coati Overview
Pursuing global block environmental license to advance exploration program
Planned re-entry of Coati-1 well for long-term test on the U-sand to evaluate
well productivity and commerciality
Coati-1 Well Attributes
Additional Prospectivity
•
Hydrodynamic trap proven in Caballos &
awaiting extended testing
•
•
Proved production from U & T sands shows
potentially large resource base present
(water-flood potential)
Nasua Prospect – geologically drill-ready
(2D seismic) anticline with multiple
reservoirs
•
Multiple undrilled anticline trend identified
on existing 2D seismic
•
Additional upside potential in A & B
limestones and “N” sandstone
•
N-sand stratigraphic potential in northern
part of block
•
28-32° API light oil
•
Multiple proven reservoir targets in block
surrounded by similar fields
www.platinoenergy.com
9
Coati Potential
Potential
•
•
•
7 prospects and leads
on 2D
5 reservoirs
Adjacent to producing
oil fields
Lead NE
Lead NW
Loro Field
N sand stratigraphic
play type
Nasua North
Caballos, U & T and N
Coati North (“B”)
Nasua
Exploration
Evaluation
San Miguel /
Acae Field
Coati Extension
Caballos Hydrodynamic
Coati/Temblon Proven
U & T & Caballos
Temblon Field Evaluation
U&T
www.platinoenergy.com
10
Putumayo-8 Overview
Awaiting revised environmental license to drill first exploratory well
Evaluating conversion of remaining 112 km2 seismic commitment to a 2nd
exploratory well
Putumayo-8 Prospectivity
•
Large acreage position that with minimal exploration activity to date
•
Numerous proven oil fields in traditional plays (U&T sands in inversion anticlines) as well as N sand
stratigraphic traps
•
Multiple reservoir targets (U, T, M2 and N sand)
•
Two drill-ready prospects identified on new 3D seismic, awaiting licensing
•
Significant upside potential in N sand stratigraphic play
www.platinoenergy.com
11
Putumayo-8 Potential
Platanillo West
Prospect (N)
Potential
•
•
•
6 Prospects/Leads
on 3D &2D
3 Reservoirs
Leads and
prospects adjacent
to producing oil
fields
U & T & N sands
anticline lead
Platanillo Field
Quinde West
Field
U & T & N sands
anticline lead
Platanillo West
Prospect (S)
Cohembi Field
Luzon N
sands Lead
Las Chicas Sur Lead
www.platinoenergy.com
12
Andaquies Overview
Block-wide environmental license in place
Evaluating further exploration plans
Prospectivity
•
Northeast extension of proven structural play fairway
•
Multiple reservoir targets (Caballos, Neme & T sand)
•
Six mapped leads targeting both proven and stratigraphic play types
•
Accessible area with minimal security issues and low-cost seismic/drilling
•
Block is licensed, so upon de-risking structures, drilling could be near-term
www.platinoenergy.com
13
Andaquies Potential
Potential
•
•
6 Prospects and
Leads on 2D
2 Reservoirs
Dual reservoir targets in complex
backthrust configuration partially
tested in Tardigrado-1. Requires
3D to properly image structural
configuration
Tardigrado
Area
Neme in anticline with Caballos
upside
Cachalote
Updip
Areas
Caballos & Neme in subthrust
configuration similar to proven fields to
SW.
Marmota
Area
Caballos
Strat
Play
Oil recovered from Neme in
Cachalote-1. Additional seismic
needed to prove updip drilling
location
Caballos pinchout trap (proven by
existing wells) is mappable on
seismic.
LEAD S
Caballos in anticline with Neme
Upside
www.platinoenergy.com
14
14
Block Terms
Coati
Putumayo-8
Andaquies
Putumayo
Putumayo
Putumayo
61,840 / 61,840(1)
102,800 / 51,400
114,875 / 114,875
Working Interest
100%(1)
50%
100%
Partner(s)
Canacol
Vetra
n/a
Operator
Platino(2)
Vetra
Platino(2)
ANH E&P Contract
ANH E&P Contract
ANH E&P Contract
Government Base Royalty
8%
8%
8%
High Price Share Participation
Yes
Yes
Yes
Third Party Royalty
6%
nil
nil
ANH X-Factor Royalty
nil
2%
nil
Well Timing Due to
Environmental License
Late 2015
Late 2015
Currently Licensed
Basin
Gross/Net Acreage
Contract Type
1. Working interest will be reduced to 80% upon Canacol earning-in in accordance with farm-in agreement.
2. Subject to ANH approval.
www.platinoenergy.com
15
Exploration Phases
Coati
Putumayo-8
Andaquies
ANH E&P Contract
ANH E&P Contract
ANH E&P Contract
Completed Phases
I, II
n/a
I
Current Phase
III
I
II
1 exploration well
1 A3 well and 207 km2 3D
seismic
1 A3 well
Current Phase Work Complete
nil
95 km2 3D seismic
1 A3 well
Current Phase Work Remaining
1 exploration well
1 A3 well and 112 km2 3D
seismic
Nil
Remaining Contractual
Commitment Cost (Gross / Net)
$3.5 MM / $2.8 MM
$14.5 MM / $7.3 MM
Nil
Contract Type
Current Phase Work Commitment
www.platinoenergy.com
16
Corporate Information
Management
Tomas Villamil
Fred Watchorn
Andres Cuenca
President & CEO
VP Geoscience
Controller & Interim CFO
Board of Directors
Carl Tricoli
Larry Evans
Tomas Villamil
Auditors
Deloitte LLP
Financial
Co-President, Denham Capital
Partner, 32 Degrees Capital
President & CEO, Platino
Investor Relations
Tomas Villamil
President & CEO
[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
17
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 2014 capital expenditure program and proposed budget, resource potential,
Platino's 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. In particular, the statements
regarding Platino being the operator of the Coati, Morpho and Andaquies blocks are subject to assumptions regarding the ability of Platino to obtain the approval of the ANH in due
course. Statements regarding the estimated spending are subject to assumptions that the costs of the company’s drilling plans will be in line with estimates and the absence of other
transactions and spending opportunities for the remainder of 2013. 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 obtaining necessary ANH approvals and 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 in Platino's Form 2B TSX Venture Exchange listing
application and other public disclosure documents from time to time, 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.
All figures are in U.S. dollars unless otherwise stated.
www.platinoenergy.com
18
Corporate Office
Suite 1250, 555 – 4th Avenue SW
Calgary, AB, Canada, T2P 3E7
+1 (403) 262-6046
Colombia Office
Carrera 4, No. 72-35, Piso 8
Bogotá, Colombia
+57 (1) 235-0007
www.platinoenergy.com
©Copyright Platino Energy Corp. 2013

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