investor presentation - sintana energy

Investor Presentation

Unconventional Exploration In Colombia

May 30, 2018

S E I

S i n t a n a E n e r g y . c o m

E x p l o r i n g A B e t t e r Way

2018 © Sintana Energy Corp. All Rights Reserved

-V

Photo courtesy of ExxonMobilParker Rig 271 Drilling at VMM-37

May 2015

1

S E I • T S X - V E x p l o r i n g A B e t t e r W a y

Disclaimer & Reader Advisory

This presentation is provided solely for information purposes to

shareholders and qualified parties and does not constitute an offer to

sell or solicit an offer to buy any securities of the Company and/or its

subsidiaries. This document may contain forward-looking statements

within the meaning of certain securities laws, including provisions of

the Securities Act (Ontario). These forward-looking statements are

based on projections, expectations and estimates as of the date of

this document. Forward-looking statements are provided for the sole

purpose of providing information about management’s expectations

and plans. All forward-looking statements made in this document are

qualified by these cautionary statements and those made in the

Company’s other filings with the securities regulators of Canada.

The information contained in this presentation is considered accurate

as of its date. Such information is subject to change at any time and

this presentation should not be construed to indicate that there has

been no change in the affairs of the Company and/or its subsidiaries

at or near or since the date hereof. Any projections of financial and

operating performance that are provided in this presentation of

management’s projected business objectives should not be construed

or be relied upon as accurate representations of future results.

An investment in Sintana Energy is speculative due to the nature of

the Company's business. The ability of the Company to carry out its

growth initiatives as indicated in this presentation is dependent on the

Company obtaining additional capital. There is no assurance that the

Company will be able to successfully raise the capital required or to

complete each of the growth initiatives described. Investors must rely

upon the ability, expertise, judgment, discretion, integrity, and good

faith of the management of the Company. Actual results will likely

vary and may vary materially. No representation or warranty is made

as to the accuracy or completeness of any of the information

contained herein. We seek safe harbor.

Certain information contained herein is considered “analogous

information” as defined in National Instrument 51-101 (“NI 51-101”).

Such analogous information has not been prepared in accordance with

NI 51-101 and the Canadian Oil and Gas Evaluation Handbook. In

particular, this presentation notes specific analogous oil discoveries

and corresponding details of said discoveries in the area of the

Company’s property interests and makes certain assumptions about

such property interests as a result of such analogous information and

potential recovery rates as a result thereof. Such information is based

on public data and information recently obtained from the public

disclosure of other issuers who are active in the area, and the

Company has no way of verifying the accuracy of such information

and cannot determine whether the source of the information is

independent. Such information has been presented to help

demonstrate that hydrocarbons may be present in commercially

recoverable quantities in the Company’s areas of interest. There is no

certainty that such results will be achieved by the Company and such

information should not be construed as an estimate of future reserves

or resources or future production levels of Sintana.

2


VMM-37

Colombia Focus

Crude Oil Reserves and Production P ro ve d Re s e r ve 1 .6 B i l l i o n B a rre l s ( Co nve nt i o n a l )

Pe a k P ro d u c t i o n 1 , 0 3 5 , 0 0 0 B a rre l s p e r D ay

Cu rre nt P ro d u c t i o n 8 2 0 , 0 0 0 B a rre l s p e r D ay

Re s e r ve L i fe In d ex 5 .4 Ye a rs

U n c o nvent i o n a l - E st i m ate s :

I n - P l a c e 4 0 B i l l i o n B a rre l s

Re co ve ra b l e 2 - 7 B i l l i o n B a rre l s

In i t i a l P ro d u c t i o n 2 0 2 0 - 2 0 2 2 ( Co mme rc i a l )

B l o c k V M M - 3 7 L o cate d i n P ro l i f i c M i d d l e M a gd a l e n a B a s i n ( 4 3 , 0 0 0 Ac re s )

M ay 2 0 1 2 - Ac q u i re d ( S i nta n a 1 0 0 %)

No v 2 0 1 2 - Fa rm - o u t to E x xo n M o b i l

S e p 2 0 1 5 - Co mp l ete d D r i l l i n g M a n at i B l a n co - 1 We l l

N ex t S tep s :

O b ta i n E nv i ro n m e nt a l Pe rmi t

E xe c u te H yd ra u l i c S t i mu l at i o n ( F ra c k)

Co n d u c t E x te n d e d P ro d u c t i o n Te st

3


VMM-37

Fa r m - o u t t o E x xo n M o b i l i n e xc h a n ge f o r a c a r r y i n t h e P h a s e

I a n d P h a s e I I p ro g ra m s . S i n t a n a r e t a i n e d 1 0 0 % i n t e re s t i n

t h e C o nv e nt i o n a l fo r m at i o n s a n d 3 0 % i n t h e U n c o nv e nt i o n a l

o i l s h a l e s i n 4 3 , 1 5 8 g ro s s a c r e s ( 1 7 4 k m 2) .

o P h a s e I – E x xo n M o b i l t o c a r r y S i n t a n a f o r 1 0 0 % o n t o t a l o f

t h re e ( 3 ) w e l l b o re s ; t w o ( 2 ) v e r t i c a l a n d o n e ( 1 ) h o r i zo n t a l

( w i t h a m i n i m u m 4 , 0 0 0 ’ l a t e ra l ) .

o P h a s e I I – F i rs t $ 4 5 M o f d e v e l o p m e n t c o s t s ( $ 1 0 M t o b e

r e i m b u rs e d b y S i n t a n a o u t o f N e t Re v e n u e s ) , t h e n h e a d s -

u p d e ve l o p m e n t .

o M a n a t i B l a n c o - 1 X – i n S e p t e m b e r 2 0 1 5 E x xo n M o b i l

c o m p l e t e d t h e d r i l l i n g o f t h e f i r s t v e r t i c a l w e l l t o ~ 1 4 , 3 4 5 ’

- 3 , 1 0 0 ’ g ro s s p ay ( ~ 1 , 0 0 0 ’ n e t ) o v e r - p re s s u re d b y 6 0 % ,

g o o d p e r m e a b i l i t y ; c u r re n t l y a w a i t i n g a p e r m i t t o f ra c k

a n d c o m p l e t e t h e w e l l .

R e s o u r c e Po t e n t i a l – U n c o n v e n t i o n a l a n d C o n v e n t i o n a l

P 5 0 u n r i s k e d r e c o v e r a b l e r e s o u r c e s e s t i m a t e n e t t o

S i n t a n a o f 2 1 0 M M B O a n d 5 0 M M B O r e s p e c t i v e l y. (1)

Producing Fields

Drill Locations

VMM-37

(1) Petrotech Engineering Ltd. - VMM-37 Resource Evaluation Report – Effective Date: July 31, 2012.

4


Unconventional Players

Source: Industry published/Wood MacKenzie Database*

Oil Fields

Proposed Drill Locations

VMM-2

SANTA ISABEL

VMM-3

VMM-27

VMM-28

VMM-37Joint Venture

25+ Strat/Hor izontal Wel ls were scheduled dur ing

2015/2016 in the Region; other t ransact ions in

the Region include*:

VMM-37 (Sintana farm-out to ExxonMobi l )

o 1 Vert ica l/1 Hor izontal Wel l

o In i t ia l wel l completed

VMM-2 (Canacol -40%/Vetra-60%)

o 3 Strat/Hor izontal Wel ls

VMM-3 (Conoco-80%/Canacol -20%)

o 3 Hor izontal Wel ls

VMM-27 & VMM-28 (Shel l -70%/Conoco -30%)

o VMM-27: 2 Hor izontal Wel ls

o VMM-28: 2 Hor izontal Wel ls

Santa Isabel (Canacol -30%/Conoco-70%)

o 13 Vert ica l/Hor izontal wel ls

VMM-1 (Lewis Energy-100%)

o 3 Hor izontal Wel ls

VMM-1

Midas B

5


Nearby Production | VMM-37

# Block Field Operator Production*

1 Mag Medio N Cantagallo Ecopetrol 14,831 BOPD

2 Prov P Norte Liebre Ecopetrol 2,000 BOPD

3 El Pinal Sur Santos-Salina Petrosantander 1,788 BOPD

4 Prov P Sur Payoa Ecopetrol 9,378 BOPD

5 Sogamoso Sogamoso Ecopetrol Inactive

6 Las Monas Corazon Petrosantander 9,378 BOPD

7 La Rompida Santa Rosa Ecopetrol 200 BOPD

8 Mag Medio S Llanito Ecopetrol 2,500 BOPD

9 Mag Medio S Galan Ecopetrol 2,100 BOPD

10 Mag Medio S Casabe Ecopetrol 19,100 BOPD

11 Quebrada Roja Quebrada Roja Ecopetrol Inactive

12 Lisama-Nutria Nutria Ecopetrol 1,000 BOEPD

13 La Cira Infantas La Cira Infantas Ecopetrol 21,400 BOPD

Producing Fields

VMM-37

Production Highlights

Block is surrounded by major oil f ields; conventional and

unconventional recoverable YTF estimates of ~4 bil l ion bbls and

~2 bil l ion bbls respectively. La Cira Infantas (950 MMBO

recoverable) operated by Ecopetrol is the largest oil f ield in the

basin.Source: Scout Reports, June 2014*

6


U n c o n v e n t i o n a l P o t e n t i a l

o S h a l e a g e a n d f a c i e s a n a l o g o u s t o

E a g l e F o r d S h a l e s ( Te x a s ) .

o 3 t o 4 t i m e s t h i c k e r s h a l e p a y

s e c t i o n s t h a n t h e E a g l e F o r d .

o V M M 3 7 B l o c k h a s a g r o s s s h a l e

v o l u m e e s t i m a t e o f 8 8 m i l l i o n a c r e

f e e t .

o B a s i n h a s s i g n i f i c a n t C o n v e n t i o n a l

a n d U n c o n v e n t i o n a l r e s o u r c e

e s t i m a t e d a t u p t o 4 0 B i l l i o n

B a r r e l s ( S o u r c e : A N H , 2 0 1 2 ) .

V M M - 3 7 R e s o u r c e Po t e n t i a l

U n c o n v e n t i o n a l P 5 0 u n r i s k e d

r e c o v e r a b l e r e s o u r c e s e s t i m a t e n e t

t o S i n t a n a o f 2 1 0 M M B O . (1)

Unconventional | VMM-37

(1) Petrotech Engineering Ltd. - VMM-37 Resource Evaluation Report– Effective Date: July 31, 2012. The unconventional andconventional prospective resources set forth in the report preparedby Petrotech Engineering Ltd. have not been disclosed in aStatement of Reserves Data pursuant to NI 51-101.

Source: Industry published/Wood MacKenzie Database

Shale Formations

Parameter VMM Tablazo VMM La Luna Neuquén Basin Eagle Ford

Well Depth (ft) 10,000-14,000 9,000-12,000 10000 10,000-13,000

Gross Pay (ft) 300-900 1,000-2,500 100-600 100-300

Net Pay (ft) 150-450 950-1,900 50-300 100-300

Horz. Well Cost ($M) 13+7 13+7 Vertical 6-9

Temp. Reservoir (F) 184 175 - 335

Ro Maturity 1.1 0.7-1.0 1.0-1.2 1.1-1.6

TOC (%) 5.5-7 5-10 4-8 2-6

Eff. Porosity (%) 8 15 7-12 6-14

Perm. (nD) 300 770 50-200 1100

STOOIP BBL/acre ft 40K-80K 750K-1,500K - 75K-150K

Pressure (psi/ft) 0.65 0.55-0.80 0.65-1.0 0.55-0.73

Quartz Content (%) 5 5-15 0-50 5-26

Clay Content (%) 30 17 15-40 15-30

Brittleness Moderate Moderate Moderate Moderate

API 43 API+ 26 API 40-45 API 40-60 API

7


Infrastructure and Drilling Locations | VMM-37

Source: Sintana Topside Team - Colombia, Sept 2014

8


Net Unconventional Recoverable Resources Summary (P50)Net Interest Gross Acres Net Resources

Block (%) Operator (000) Unrisked (Mmboe) API

VMM-37 30 ExxonMobil 43 210 (1) 26-43

Net Conventional Recoverable Resources Summary (P50)

VMM-37 100 Sintana 43 50 (2) 21-35

Net Unconventional & Conventional Resources Summary ( P50)

Unconventional + Conventional 260

Unconventional & Conventional Resources

(1) Petrotech Engineering Ltd. - VMM-37 UC Resource Evaluation Report – Effective Date: July 31, 2012

(2) Represents Management’s estimate of conventional recoverable resources

9


A highly skil led, results oriented Executive Management Team and Board of Directors with signif icant

International operations and finance expertise.

Executive Management & Directors

Executive Management

Keith Spickelmier - Executive Chairman,

Attorney - Capital Markets and Corporate Finance

Douglas Manner - Chief Executive Officer,

Reservoir Engineer - Strategy and Corporate Finance

David Cherry - President & Chief Operating Officer,

Business Development - Operations

Carmelo Marrelli - Chief Financial Officer

Chartered Accountant - Compliance

Sean Austin – Vice President

Corporate - Finance, Accounting and Administration

Board of Directors

Keith Spickelmier

Douglas Manner

Bruno Maruzzo - Independent Director

Engineer/MBA/Consultant - Business Development

Dean Gendron - Independent Director

Business Development/Finance/TSX-V Ontario Advisory Committee Member

10


Contact Information

S i n t a n a E n e r g y . c o mi n f o @ s i n t a n a e n e r g y . c o m

Sintana Energy Inc. – US Office

5949 Sherry Lane, Suite 835

Dallas, TX 75225

Douglas Manner

Chief Executive Officer

T: 832.279.4913

Sean Austin

Vice-President

T: 713.825.9591

11


Keith Spickelmier, Executive Chairman – Fou n der o f Nort hbrook En ergy LLC. He was t h e Fou n der

an d Ch a i rman of West s id e En ergy, a comp any h e grew f rom star t -up to US $200 mi l l ion sa le . Par t i c ipated

in n u merou s p u bl i c an d p r ivate en ergy invest ments . Pract ic in g attorney f rom 1986 to 2000.

Douglas Manner, Chief Executive Officer – Founder o f Northbrook En ergy LLC. He has 3 5 years of

Indu st ry exper ien ce in c lud ing 1 5 years with Ryd er Scott . Former COO o f Gulf Canad a Resources ,

manag in g operat ion s in 2 0 countr ies wit h 150 ,0 0 0 b oepd . Former COO o f Kosmos En ergy, (o ffsh ore

Gh an a) CEO o f Bel lwet h er Resources , (South America explorat ion ) and West s ide En ergy (Barn ett Sh a le

d eve lopment) .

David Cherry, President and Chief Operating Officer – Foundin g Partn er of Northbrook En ergy

LLC. and Found er o f Petroven In c . He h as 3 8 years o f indu st ry exp er ien ce , focu sed on prosp ect

id ent i f i cat ion, eva lu at ion an d st ru ct ur ing o f acq u is i t ions an d var iou s t yp es o f o i l an d gas t ran sact ions .

Carmelo Marrel l i , Chief Financial Off icer – Mr. Marre l l i has over 15 years exper ience as Chief

F in an c ia l Off i cer of severa l publ i c ly l i sted jun ior min ing comp anies . He is a Ch artered Accountant and

Cert i f ied Gen era l Accou ntant in Can ad a .

Sean Austin, Vice President, Control ler, Corporate Secretary & Treasurer – Mr. Aust in h as

over 3 5 years of exp er ien ce in o i l and gas f in an c ia l p lann in g , rep ort ing , an a lys i s and contro l . He was th e

CFO and a D irector o f Ir v in e En ergy USA and CFO of West s ide En ergy. He previou s ly sp ent 2 3 years with

Hess in sen ior p os i t ion s in c lud ing Corporate Cont rol ler and Head –World wid e Exp lorat ion and Produ ct ion

F in an c ia l & Commerc ia l Ser v ices .

Key Management

investor presentation - sintana energy

Documents