Explore. Find. Develop.
GROW.
1
CORPORATE PRESENTATION
JANUARY 12, 2015
TSX-V: PTA
Colombia FOCUS
›
•
•
›
›
LLA-10
12 blocks with over 1 million gross acres
equally split between the Llanos and
Putumayo basins
o Several new discoveries and exceptional
exploration upside
LOS
OCARROS
LLA-19
El EDEN
EL PORTON
Llanos low-side fault closure play
Dominant land position in the
Putumayo N Sand oil play
2P reserves base equally divided between
Llanos & Putumayo basins
Diversified production base from 6 fields,
production equally split between Llanos
and Putumayo basins
BALAY
LLANOS
PUT 2
PUTUMAYO
2
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TSX-V: PTA
ALEA
1848
PUT 7
ALEA 1947
PUT 31
SURORIENTE
Petroamerica A SNAPSHOT
Operations
Production
2014 Average Production
Reserves 2P
6,250 boepd1
Petroamerica Year-End 2013 Llanos Reserves
4.9 MMboe2
Acquired Suroco Mid-Year 2014 Putumayo Reserves
5.9 MMboe3
Capital Structure
Market capitalization on December 31, 2014 (872.5 Million shares)
Positive Working Capital at September 30, 2014
Enterprise Value
All amounts in this presentation are in US dollars, unless otherwise noted.
TSX-V: PTA
$20.4 million5
$99.3 million
Estimated Cash Position at December 31, 2014
3
3
$119.7 million4
Please refer to slide 19– footnotes and abbreviations.
over $60 million
Suroco Acquisition July 15, 2014
› Why acquire Suroco?
• Diversify PTA production and asset base
•
•
into the Putumayo Basin
Increase corporate reserve life index (RLI)
from approximately 2 to 4 years2&3
Provide significant exposure to emerging
high potential N Sand play
Suroco Acquisition
Petroamerica 2014 Bid Round (PUT-31)
PUT-2
Oil Field
ALEA
1947
› What did we pay?
ALEA 1848
• Suroco acquired for $130 million
• Funded through a combination of cash and
equity
PUT 7
PUT-31
SURORIENTE
o $50 million cash/assumed debt
o Issued 254 million shares of PTA
• $22.21 per 2P barrel
20 km
PUT-31 added through 2014 ANH Bid Round.
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4
TSX-V: PTA
Please refer to slide 19 – footnotes and abbreviations.
2014 Expanding & Optimizing the Asset Base
› New Play Entry
• Suroco acquisition – established a dominant position in the potentially
prolific emerging N sand play
• Consolidated N Sand acreage position by adding PUT-31 with Gran Tierra
› Portfolio risk management & optimization
• Farmed out 50% working interests (WI) on El Porton and LLA-10, resulting
in PTA being carried for a significant portion of the cost of future
commitment wells (2)
• Farmed into LLA-19 drilling the Langur-1X discovery well to earn PTA’s
50% WI in the block
› New oil discoveries
• La Casona-2 (Mirador – with possible oil rim), Rumi-1 and Langur-1X (PTA)
• Quinde West, Quinde East (Suroco)
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TSX-V: PTA
2015 Guidance - 6 months to June 30, 2015
H1 2015 Average Production
5,400 bopd
Wells
•
•
•
•
Capex (Net $ million)
Gross
Net
Drilling,
Completions
& Workovers
Facilities
Seismic
Total
Exploration
2.0
1.0
$6.4
$0.0
$0.0
$6.4
Appraisal
1.0
0.5
$7.3
$0.0
$0.0
$7.3
Development
0.0
0.0
$3.6
$2.9
$0.0
$6.5
Total
3.0
1.5
$17.3
$2.9
$0.0
$20.2
Assumes $55/bbl Brent average price for first six months of 2015
If current oil price prevails, the full year capex spend is estimated at $25 - $30 million
Expectation of positive working capital position throughout 2015
Development drilling on Putumayo fields to be deferred, at least until mid-year pending clarity on oil price
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TSX-V: PTA
Langur – A promising New Discovery
Low-side Fault
Closure Play
LLA-19 (50% WI)6
› Langur-1X discovery – December 2014
•
•
A’
A
14.5 feet of net pay
Stabilized flow rate of 760 bopd of 24° API oil with
a steadily declining water cut (26% at the end of the test)
Gacheta C
› Establishes new Gacheta low side closure play type
Edge water
drive
over land position
› Opens up follow-on drilling opportunities
•
•
•
Langur-2 appraisal well (Q1 2015)
Tierra Blanca prospect de-risked by Tierra Blanca-1 (1986)
Exploration Lead
Additional prospects identified along trend on 3D seismic
Field
Oil Well
Langur-1 Test Results
Well
1000
100%
100%
1000
Oil
Fault
500
% water Cut
bopd
LLA-19
50%
Decreasing Water Cut
26% Water Cut
0
0%
A
LLA-19
0 0%
17-Dec
19-Dec
21-Dec
23-Dec
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TSX-V: PTA
25-Dec
27-Dec
29-Dec
31-Dec
Langur-1
Tierra
Blanca-1
(1986)
Please refer to slide19– footnotes and abbreviations.
Langur-1
A’
Tierra Blanca Structure
Near Term Drilling 2015
Llanos Low-side Closure Play
LLA-10
LLA-19 (50%WI)6
› Langur-2 Appraisal (Q1 2015)
LLA-10 (50% WI)
Garza Roja-1
› Garza Roja-1 (Q1 2015)
•
•
PTA paying 5.5% of the well, retaining 50% WI
High impact – targeting Pmean WI
12.9 MMbbls7
Follow-on “look-alike” prospects in success case
•
Llanos Conventional Play
El Portón (50% WI)
LLA-19
› Calatea-2 (Q1/Q2 2015)
•
•
•
PTA has partial carry, resulting in the Company
paying 20% of well, retaining 50% WI
Multiple reservoir targets
Targeting Pmean WI 6.6 MMbbls7
EL PORTON
Calatea-2
LLA-19
Langur-2
EL EDEN
10 KM
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TSX-V: PTA
LOS
OCARROS
Please refer to slide 19 – footnotes and abbreviations.
Field
Putumayo Upside - Dominating the N Sand Play
›
›
›
›
›
›
›
N Sand play is a repeatable, seismically driven
amplitude play
Initially proved in Ecuador (1990s), not pursued in
Colombia due to security situation
Play extension into Colombia proved by Cohembi
(2008) and repeatability proved by Quinde
discoveries
Quinde East discovery proved pure stratigraphic
trapping concept
Petroamerica has captured a leading land position
in the play, with over 485,000 gross prospective
acres.
Pmean working interest prospective N Sand
resources of 54 MMbbls7 unrisked, 27 MMbbls8
risked, on Petroamerica’s acreage
4 drill-ready prospects, deferred pending oil price
recovery
PUT-2
ALEA 1947
Trampa Mixta
PUT-31
ALEA 1848
PUT 7
Santa Maria
SURORIENTE
Cohembi North
Diamante
Exploration Lead
Exploration Prospect
Field
3D Seismic Existing
20 km
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TSX-V: PTA
Please refer to slide 19 – footnotes and abbreviations.
Fault
Future Well
Llanos Fields – Development Activity
Las Maracas (50% WI)
Fully Developed
› Stacked reservoirs Une, Gacheta &
Mirador
Gacheta
LM-8
LM-1
W
LM-3
LM-2ST1
LM-4
› Light 29-37° API oil
› Managing field decline by work overs
LM-13
LM-11
LM-5
LM-16
W
LM-2
LM-10
LM-12
LM-15
LM-6
and water disposal optimization
LM-9
LM-7
› Cost control – purchase La Casona gas
3 KM
LM-14
to lower power generation costs for
water injection
Producing Well
Water Injector
Surface pad
Fault
La Casona (40% WI)
› Light oil/condensate, Mirador, Gacheta
›
& Une reservoirs. Oil rim potential
identified
2 wells & 4.5 MMcfd gas compression
facility
Exploration Lead
Exploration Prospect
Field
3D Seismic Existing
LOS OCARROS
LLA-19
Fault
Las Maracas
EL PORTON
LLA-19
La Casona
EL EDEN
1
10
0
TSX-V: PTA
Please refer to slide19– footnotes and abbreviations.
Rumi
10 KM
Putumayo Fields – Development Activity
Suroriente (15.8% WI)
Cohembi Field
›
›
›
›
›
SURORIENTE
PUT-7
125 MMbls of Oil-in-Place3
Expected ultimate recovery factor 24%3 (2P)
Successful waterflood
Deferral of development drilling pending oil price
recovery – review mid-year
Up to 10 potential drilling locations
Santa Maria
Quinde
West Quinde
East
Quinde East/West Fields
›
›
›
›
36 MMbls of Oil-in-Place3
Expected ultimate recovery factor 24%3 (2P)
Deferral of development drilling pending oil price
recovery – review mid-year
Up to 4 additional development locations
PUT-7 (50% WI) Santa Maria
›
›
›
›
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1
Exploration Lead
Exploration Prospect
Field
3D Seismic Existing
Fault
Oil wells
Drilling locations
Quinde seismic anomaly extends into PUT-7
Estimated 40 MMbbls3 in place
Apply learnings from Quinde (15.8% WI) to
Santa Maria (50% WI)
Up to 4 additional drilling locations
TSX-V: PTA
Cohembi
Please refer to slide19– footnotes and abbreviations.
5 km
Petroamerica in a Volatile Oil Market
› Stable production base (5,500 boepd1) even after delaying investments
› Focus on capital preservation with an eye on flexibility
› Flexible capital program permits a deceleration or acceleration of activities
depending on oil price
› Expected positive working capital position throughout 2015
› Mid to long term growth potential from an exceptional portfolio of exploration
opportunities
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TSX-V: PTA
Please refer to slide 19 – footnotes and abbreviations.
Executive Management & Board of Directors
Executive Management
Board of Directors
Jeffrey S. Boyce – Lead Executive Director
Senior oil and gas executive with over 35 years of domestic and
international experience in building, financing and managing
public oil and gas companies, including Vermilion Energy.
Jeffrey S. Boyce – Lead Director
Nelson Navarrete – Executive Chairman
Over 27 years of oil and gas experience through his
extensive career with the State Oil Company of
Colombia – Ecopetrol.
Ralph Gillcrist – President, CEO & Director
More than 25 years experience worldwide in exploration and
production, with extensive exposure to Colombia, for Union
Texas Petroleum, LASMO and CEPSA.
Colin Wagner – CFO
More than 25 years experience working with many
international oil and gas companies supporting operations in
Brazil, Cuba, Colombia, Australia and Norway.
Dave Monroe – VP Development & Production
Over 33 years of diverse petroleum engineering experience with
both international and Canadian oil and gas companies, most
recently Suroco Energy in Colombia.
Independent Reserve Engineers – GLJ Petroleum Consultants
Auditor – Deloitte Touche Tohmatsu Limited
Banker – Scotiabank
Legal – Dentons Canada LLP
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TSX-V: PTA
Michael E. Beckett
Chairman of Endeavour Mining.
Ralph Gillcrist
Augusto López
Director of Pacific Rubiales Energy Corp. , Gran Colombia, and
Sportsat and the managing partner of Prospectiva Financiera.
Former President at Bavaria, S.A. which is Colombia’s largest
beverage maker.
Nelson Navarrete
Juan Szabo
Served as a member of the Board of Directors of Pequiven,
PDVSA Oil and Gas, Citgo Petroleum and several Joint Venture
Companies and, more recently, as a Director of Suroco Energy Inc.
John Zaozirny
Vice Chair & a Director of Canaccord Capital Corporation, was
Counsel to the law firm of
McCarthy Tetrault LLP from 1986 to 2008.
Analyst Coverage –
Canaccord Genuity Corp.
First Energy Capital Corp.
Paradigm Capital Inc.
Edgecrest Capital Corp.
GMP Securities LP
TD Securities Inc.
Capital & Debt Structure at December 31, 2014
Common Shares Outstanding
872.5 million
Price
$ 0.20
Warrants
Expiry
19-Apr-15
8.4 million
Contingent Value Rights
Options
1%
7%
8.8 million
63.0 million
Fully Diluted Common Shares Outstanding
9%
952.8 million
Total Value of Warrants if Excercised
Average Price of Issued Options
Outstanding Debt
3,500 Senior Secured Notes at $10,000 per Note
Notes earn interest at 11.5% p.a. and mature on April 19, 2015.
The notes can be repaid by the Company without penalty at any time up to maturity
Note: All monetary balances shown are in Canadian Dollars
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4
Dilution
1%
TSX-V: PTA
$1.7 million
$0.31/share
$35.0 million
Crude
CrudeOil Marketing
Marketing
& Transport
Llanos
› Diversified markets
› 60% of sales linked to Brent, 40% to
Vasconia
› Crude currently transported to:
Coveñas
Barrancabermeia
Putumayo
Vasconia
›
Historical Trucking
• Multiple delivery points: Orito (OTA, OSO
pipelines), Babillas, Dina, Guaduas,
Vasconia (ODC), Baranquilla port
• Risks include FARC guerilla attacks on
truck convoys & pipelines (OTA)
› Current
• Negotiated export route south to Ecuador
OCP through Amazonas station (2,000
bopd net to PTA)
• Sales linked to Napo blend
• Expected $8-10/bbl improvement in
netback
Hidrocasanare
OAM 103,000 bopd
Babillas
LLANOS
BASIN
Ocensa 556,000 bopd
Guaduas
Araguaney
BOGOTA
Castilla-Apiay
140,000 bopd
Monterrey
ODL 170,000 bopd
Apiay-El Porvenir 556,000 bopd
Apiay
TransAndean (OTA)
Esmeralda
PUTUMAYO
BASIN
QUITO
OCP
Amazonas
SOTE
TSX-V: PTA
Bicentennial
450,000 bopd
Phase 3
Phase 2
Phase1
ODC 205,000 bopd
Araguaney/ Monterrey (OBC), Ocensa
loading terminal, Guaduas (ODC),
Hidrocasanare
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5
Caño Limon 240,000 bopd
Refinery
Offloading Facility
Oil Pipeline
Gas Pipeline
15
Block Summary
Basin
Llanos
Putumayo
1
16
6
PTA Working
Interest
Gross
Acres
Net Acres
Additional
Royalty
Perenco
15%
1,776
266
0%
Parex
40%
99,633
39,853
0%
Exploration - Parex
50%
98,754
49,377
Curiara Area - CEPSA
25%
10,722
2,681
LLA-10
Parex
50%
189,536
94,768
3%
LLA-19
Pacific Stratus
50%
97,952
48,976
0%
Los Ocarros
Parex
50%
57,118
28,559
0%
Llanos Total Acreage
555,492
264,480
Block
Operator
Balay
El Edén
El Portón
0%
Alea 1848A
Vetra
50%
75,614
37,807
0%
Alea 1947C
Vetra
49.5%
58,067
28,743
0%
PUT-2
Petronova
25%
96,665
24,166
1%
50%
130,184
65,092
0%
35%
34.827
12,189
12%
15.8%
90,263
14,262
0%
Putumayo Total Acreage
485,620
182,290
Colombia Total Acreage
1,041,122
446,771
PUT-7
Petro Caribbean
PUT-31
Gran Tierra
Suroriente
CCE
TSX-V: PTA
9
Forward looking Statements
This presentation includes information that constitutes “forward-looking information” or
“forward-looking statements”. More particularly, this presentation contains statements
concerning expectations regarding the successful implementation of the recently
completed plan of arrangement (the “Arrangement”) with Suroco Energy Inc. (“Suroco”),
cash flow, business strategy, priorities and plans, expected production, the evaluation of
certain prospects in which Petroamerica holds an interest following the completion of the
Arrangement, estimated number of drilling locations, expected capital program (including
its allocation), production growth, reserves growth, the receipt of and the timing of receipt
of environmental licenses, the ability of Petroamerica to transport and sell its crude volume
and other statements, expectations, beliefs, goals, objectives, assumptions and information
about possible future events, conditions, results of operations or performance. Readers are
cautioned not to place undue reliance on forward-looking statements, as there can be no
assurance that the plans, intentions or expectations upon which they are based will occur.
By their nature, forward-looking statements involve numerous assumptions, known and
unknown risks and uncertainties, both general and specific, that contribute to the possibility
that the predictions, estimates, forecasts, projections and other forward-looking statements
will not occur, which may cause actual performance and results in future periods to differ
materially from any estimates or projections of future performance or results expressed or
implied by such forward-looking statements. Business priorities disclosed herein are
objectives only and their achievement cannot be guaranteed. Indicative capital spending,
drilling and production estimates for 2015, which are provided herein, are subject to
change.
Material risk factors include, but are not limited to: the inability to obtain regulatory
approval for any operational activities, terrorist activity in areas where Petroamerica
conducts its business, the risks of the oil and gas industry in general, such as operational
risks in exploring for, developing and producing crude oil and natural gas, market demand
and unpredictable shortages of equipment and/or labour; potential delays or changes in
plans with respect to exploration or development projects or capital expenditures;
fluctuations in oil and gas prices, foreign currency exchange rates and interest rates, and
reliance on industry partners and other factors, many of which are beyond the control of
Petroamerica. You can find an additional discussion of those assumptions, risks and
uncertainties in Petroamerica’s Canadian securities filings.
Neither Petroamerica nor any of its subsidiaries nor any of its officers, directors or
employees guarantees that the assumptions underlying such forward-looking statements
are free from errors nor do any of the foregoing accept any responsibility for the future
accuracy of the opinions expressed in this document or the actual occurrence of the
forecasted developments.
Readers should also note that even if the drilling program as proposed by Petroamerica is
successful, there are many factors that could result in production levels being less than
anticipated or targeted, including without limitation, greater than anticipated declines in
existing production due to poor reservoir performance, mechanical failures or inability to
access production facilities, among other factors.
Statements relating to “reserves” and “resources” are deemed to be forward-looking
statements or information, as they involve the implied assessment, based on certain
estimates and assumptions, that the reserves and resources described can be profitable in
the future.
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TSX-V: PTA
There are numerous uncertainties inherent in estimating quantities of reserves and
resources, including many factors beyond the control of Petroamerica. The reserve and
resource data included herein represents estimates only. In general, estimates of
economically recoverable oil and natural gas reserves and the future net cash flows
therefrom are based upon a number of variable factors and assumptions, such as historical
production from the properties, the assumed effects of regulation by governmental
agencies and future operating costs, all of which may vary considerably from actual results.
All such estimates are to some degree speculative and classifications of reserves are only
attempts to define the degree of speculation involved.
The assumptions relating to reserves and resources are contained in the reports of GLJ
Petroleum Consultants Ltd. for Petroamerica dated effective December 31, 2013 and for
Suroco dated effective June 30, 2014.
Throughout this presentation, the calculation of barrels of oil equivalent (“boe”) is at a
conversion rate of 6,000 cubic feet (“cf”) of natural gas for one barrel of oil and is based on
an energy equivalence conversion method. Boe may be misleading, particularly if used in
isolation. A boe conversion ratio of 6,000 cf: 1 barrel is based on an energy equivalence
conversion method primarily applicable at the burner tip and does not represent a value
equivalence at the wellhead.
For the purposes of the following, “Misrepresentation” means an untrue statement of a
material fact, or an omission to state a material fact that is required to be stated, or that is
necessary to make a statement not misleading in light of the circumstances in which it was
made. If this presentation contains a Misrepresentation, a purchaser in Ontario who
purchases securities of Petroamerica has, without regard to whether the purchaser relied
on the Misrepresentation, a statutory right of action for rescission or, alternatively, for
damages against Petroamerica, provided that no action shall be commenced to enforce a
right of action more than (a) in the case of an action for rescission, 180 days after the date of
the transaction that gave rise to the cause of action; or (b) in the case of any action, other
than an action for rescission, the earlier of (i) 180 days after the purchaser first had
knowledge of the facts giving rise to the cause of action, or (ii) three years after the date of
the transaction that gave rise to the cause of action.
Petroamerica will not be liable if it proves that the purchaser purchased the securities with
knowledge of the Misrepresentation. In an action for damages, Petroamerica will not be
liable for all or any portion of those damages that it proves do not represent the
depreciation in value of the securities as a result of the Misrepresentation. In no case will
the amount recoverable exceed the price at which the securities were sold to the purchaser.
Investors should refer to the applicable provisions of the securities legislation of their
respective provinces or territories for the particulars of these rights or consult with a legal
advisor.
The forward-looking information contained in this investor presentation speaks only as of
the date of this investor presentation and is expressly qualified, in its entirety, by this
cautionary statement and Petroamerica disclaims any intent or obligation to update publicly
any forward-looking information, whether as a result of new information, future events or
results or otherwise, other than as required by applicable securities laws. This information is
confidential and is being presented to potential investors solely for information purposes.
These materials do not and are not to be construed as an offering memorandum. An
investment in securities of Petroamerica involves a high degree of risk and potential
investors are advised to seek their own investment and legal advice.
Forward looking Statements (continued)
Forecast capital expenditures are based on Petroamerica’s current budgets and development
plans which are subject to change based on commodity prices, market conditions, drilling
success, potential timing delays and access to cash, cash flow, available credit and third party
participation. Petroamerica’s capital budget has been prepared based upon anticipated costs
for equipment and services which are subject to fluctuation based upon market conditions,
availability and potential changes or delays in capital expenditures.
Additionally, forecast capital expenditures do not include capital required to pursue future
acquisitions. Anticipated production growth has been estimated based on (i) the proposed
drilling program with a success rate based upon historical drilling success and an evaluation
of the particular wells to be drilled and has been risked, and (ii) current production and
anticipated decline rates. Although the forward-looking information contained herein is
based upon assumptions which Management believes to be reasonable, Petroamerica cannot
assure investors that actual results will be consistent with this forward-looking information.
For the discussions of estimated prospective resources in this presentation, the following
terms have the following respective meanings:
“BEST ESTIMATE” is considered to be the best estimate of the quantity that will actually be
recovered. It is equally likely that the actual remaining quantities recovered will be greater or
less than the best estimate. If probabilistic methods are used, there should be at least a 50
Percent probability (P50) that the quantities actually recovered will equal or exceed the best
estimate.
“HIGH ESTIMATE” is considered to be an optimistic estimate of the quantity that will actually
be recovered. It is unlikely that the actual remaining quantities recovered will exceed the
high estimate. If probabilistic methods are used, there should be at least a 10 percent
probability (P10) that the quantities actually recovered will equal or exceed the high
estimate.
“LOW ESTIMATE” is considered to be a conservative estimate of the quantity that will
actually be recovered. It is likely that the actual remaining quantities recovered will exceed
the low estimate. If probabilistic methods are used, there should be at least a 90 percent
probability (P90) that the quantities actually recovered will equal or exceed the low estimate.
“MEAN ESTIMATE” or “Pmean” is the statistical mean resource value for each exploration
prospect. The statistical mean is dependent on the estimated probabilistic distribution of
recoverable resources and is not the same as the “best estimate” or P50 resource volume.
These values can be arithmetically summed to obtain a total mean estimate for a group of
prospects.
“PETROAMERICA INTERNAL EVALUATION” means the evaluation conducted by qualified
reserves evaluators of the Petroamerica technical team, effective September 12, 2014.
“PROSPECTIVE RESOURCES” are those quantities of petroleum estimated, as of a given
date, to be potentially recoverable from undiscovered accumulations by application of future
development projects. Prospective resources have both an associated chance of discovery
and a chance of development. Prospective Resources are further subdivided in accordance
with the level of certainty associated with recoverable estimates assuming their discovery
and development and may be subclassified based on project maturity. Unless otherwise
indicated herein, the Prospective Resources set out in this presentation are unrisked,
meaning that they are not risked for chance of development or chance of discovery.
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TSX-V: PTA
Estimates of unrisked Prospective Resources are pursuant to the Petroamerica Internal
Evaluation. There is no certainty that any portion of the resources will be discovered. If
discovered, there is no certainty that it will be commercially viable to produce any portion of
the resources. If a discovery is made, there is no certainty that it will be developed or, if it is
developed, there is no certainty as to the timing of such development.
“CONTINGENT RESOURCES” means quantities of petroleum estimated, as of a given date, to
be potentially recoverable from known accumulations using established technology or
technology under development, but which are not currently considered to be commercially
recoverable due to one or more contingencies. Contingencies may include factors such as
economic, legal, environmental, political, and regulatory matters, or a lack of markets.
Contingent resources are further classified in accordance with the level of certainty
associated with the estimates and may be sub-classified based on project maturity and/or
characterized by their economic status.
The contingencies which currently prevent the classification of the contingent resources
disclosed in this presentation as reserves consist of: economic matters, further facility design
and preparation of firm development plans, regulatory matters, including regulatory
applications (including associated reservoir studies and delineation drilling), company
approvals and other factors such as legal, environmental and political matters or a lack of
markets. There is no certainty that it will be commercially viable for Petroamerica to produce
any portion of its contingent resources. The contingencies preventing classification of
contingent resources as reserves fall into the categories of technical, such as the need for
more evaluation drilling or the assumed use of technology under development, and nontechnical, such as uneconomic development or lack of a regulatory submission. Petroamerica
cannot assure that it will be commercially viable to produce any portion of the contingent
resources until contingencies are eliminated through detailed designs and regulatory
submissions.
It is also appropriate to classify as contingent resources the estimated discovered
recoverable quantities associated with a project in the early evaluation stage. There is a
greater degree of risk associated with developing the carbonates in view of the distinction
that established recovery technologies are methods proven to be successful in commercial
applications, whilst technology under development is technology developed and verified by
testing as feasible for future commercial application to the subject reservoir.
There are numerous uncertainties inherent in estimating quantities of contingent resources
and future net revenues to be derived therefrom, including many factors beyond
Petroamerica’s control. These include a number of factors and assumptions made as of the
date on which the evaluation is made such as geological and engineering estimates which
have inherent uncertainties, the effects of regulation by governmental agencies such as
initial production rates, production decline rates, ultimate recovery of contingent resources,
timing and amount of capital expenditures, marketability of production, current and
estimated prices of crude oil and natural gas, the ability to transport the product to various
markets, operating costs, abandonment and salvage values and royalties and other
government levies that may be imposed over the productive life of the contingent resources.
Contingent resources estimates may require revision based on actual production experience.
Data obtained from the initial testing results, including barrels of oil produced and levels of
water-cut, should be considered to be preliminary until a further and detailed analysis or
interpretation has been done on such data. The well test results obtained and disclosed are
not necessarily indicative of long-term performance or of ultimate recovery. The reader is
cautioned not to unduly rely on such results as such results may not be indicative of future
performance of the well or of expected production results for the Company in the future.
Abbreviations and footnotes
bopd: barrels of oil per day
boepd: barrels of oil equivalent per day. Using conversion rate of: 6 thousand cubic feet of gas equal to 1 barrel of oil
bfpd: barrels of fluid per day
bbl: barrel
MMbbls: million barrels
MMboe: million barrels of oil equivalent
MMcfd: millions of cubic feet per day
WI: working interest
RLI: reserve life index
1. Estimated production
2. Source: GLJ Reserves Assessment and Evaluation of Colombian Oil Properties as of December 31, 2013 for Petroamerica,
gross working interest before royalty.
3. Source: GLJ Reserves Assessment and Evaluation of Colombian Oil Properties as of June 30, 2014 for Suroco,
gross working interest before royalty.
4. Using volume weighted average price for December 2014.
5.Based on September 30, 2014 published numbers. Working Capital is cash & short term investments, receivables & prepayments, less current income taxes,
accounts payable & short term notes payable
6. Subject to earning & ANH approval
7. Estimates of unrisked WI Prospective Resources pursuant to the Petroamerica Internal Evaluation and do not, necessarily , reflect the views of partners. There is
no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of
the resources. If a discovery is made, there is no certainty that it will be developed or, if it is developed, there is no certainty as to the timing of such development.
8. Estimates of WI Prospective Resources pursuant to the Petroamerica Internal Evaluation and do not, necessarily, reflect the views of partners. There is no
certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the
resources. If a discovery is made, there is no certainty that it will be developed or, if it is developed, there is no certainty as to the timing of such development
9. Petro Caribbean holds a 10% overriding royalty on PUT-7
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TSX-V: PTA
CORPORATE
INFORMATION
Petroamerica Oil Corp.
Suite 200, 903-8th Avenue S.W.
Calgary, Alberta, Canada T2P 0P7
Telephone: (403) 237-8300
Email: [email protected]
Website: www.PetroamericaOilCorp.com
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TSX-V: PTA