Canoel International Energy - October 2013

1. Canoel International Energy
TSX-V Listed: CIL
September 2013

2. Market Facts – September 9, 2013
TSX-Venture Exchange Symbol
CIL
52 Week Trading Range
$0.15 – $0.75
Common Shares Outstanding
Basic
8,188,429
Fully Diluted
11,874,899
Management, Directors & Insiders
~ 20%
Market Capitalization
$2.4 Million
2

3. Management and Directors
Andrea Cattaneo
Jose Ramon Lopez Portillo
CEO and President
Chairman of the Board
•Resource focused specialist for
emerging countries
•Expertise in structuring contracts
in international markets and the oil
industry
•30 years expertise in emerging
economies as a sovereign lender:
in 1986, involved in the first loan to
Vietnam after the war
•Experienced negotiator and
government advisor, with
industrial experience
•Member of the Business Advisory
Council – Greater Tumen Initiative
(a United Nations Development
Program sponsored organization)
covering Russia, China, the two
Koreas and Mongolia
•Managing director of Canoel and
its subsidiaries
•Economist; past Mexican Ambassador
in Rome, Italy: former Minister of
Mexico
•Former Chairman of FAO (United
Nations agency for Food and
Agriculture) in Rome for two terms
•Leading researcher on Energy Security
of Mexico
•Large network of political and
business contacts worldwide
Erik Larre
Director and Chairman of the
Audit Committee
•Entrepreneur, Norwegian nationality
•Deputy Chairman of Sparebanken
Nord-Norge, as a member of the
Supervisory Board of Sparebanken
Vest
•Director of many real estate
companies around the world
•Strong business connections within
the Nordic business community and
internationally
3

4. Management and Directors
Dario Sodero
Luigi Regis Milano
Francesco Zofrea
Director
Director
Director
• Experienced energy industry
executive with 35 years of
experience in North
America, the Sub-Arctic, North
Africa and the Middle East
• Former President and director
of Cygam Energy Inc., a TSX-V
listed company with production
and exploration permits in
Tunisia and Italy.
• Director of Rockbridge
Resources Inc. and former
director and executive of
several other TSX and TSX-V
listed companies
• Managing Director of Canoel
Italia Srl
• More than 35 years of oil
industry experience, having
served as a director and then
owner of large oil
refining, processing and trading
company
• Currently director and partowner of DPL Lubrificanti Spa, a
private bio-diesel refining
company based in Italy
• Strong network of relationships
within the European and global
oil industry
• Presently director of ENI Power
Spa, the electricity branch of
the Italian national energy
company
• Previously Managing Director of
Agip Petroli Spa, the main
operative arm of ENI
• Experienced oil professional
with a long career in oil trading
and refining
• Relationship with other majors
international companies and oil
producing countries
• Strong geological, exploration
and technical expertise
4

5. Advisory Committee
Colin Russel
International Executive
• Former Diplomat with the
Canadian foreign service - key
posts in Hong Kong and Venezuela
• Member of the Board of Husky
Oil, a large Canadian integrated oil
company
• Currently Director of Cheung Kong
Infrastructure Holdings, Hong
Kong, CK Life Sciences, Hong
Kong, and ARA Asset
Management, Singapore
• Significant experience in
international markets and the oil
industry
James Ladner
Hans-Rune Wahlstrom
Switzerland-based business
executive
International Executive
• Banker with several years of
experience and increasing
executive positions within the
Swiss banking community
• International banking experience
with Christiania Bank in both Oslo
and London, Essar Securities and
SPN Fond
• Director of several resources
companies listed on major
exchanges
• Fluent in four languages
• Strong expertise in financial
markets and capital raising
• Member of The Norwegian Society
of Financial Analysts
• Former Head of North American
Equity Sale at Kidder, Peabody &
Co. Inc
• Currently Senior Managing Director
of New York based investment
bank, Du Pasquier & Co. Inc.
5

6. Corporate Operating Strategy
 Capitalize on management’s international connections to continue
accretive growth through acquisitions
 Focus on Company interests in Argentina, Italy and Libya as core
international venues
 Decrease shareholder risk by diversifying through a number of regional
prospects
 Acquire proven and producing reserves and cash flow in temporarily
distressed or emerging areas
 Focus on opportunities where Canoel may retain the role of Operator
6

7. 7

8. Asset Highlights - Argentina
 National oil company (YPF) reported to have drilled 10 successful wells to
2000m depth, on lands offsetting Canoel’s fields, with potential
production of up to 1000 bopd each
 No CAPEX commitments
 No income tax payable on sale of oil
 Royalties fixed at 9%
 No expiry date for the two permits
 Bridge plugs in several of Canoel’s wells currently isolate deeper oil bearing
horizons which could be recompleted and placed on production
 Oilfield infrastructure, including pipelines and facilities, can handle additional
production
8

9. Asset Highlights - Argentina
Ralph E. Davis Associates Inc. (Houston)
Independent NI-51-101 Report (March 31, 2013)
Total Proved Reserves:
1,609,000 bbls oil
Developed producing:
245,000 bbls oil
Developed non-producing:
696,000 bbls oil
Undeveloped:
668,000 bbls oil
Probable reserves:
220,000 bbls oil
9

10. Outlook for Argentina
Don Alberto & Don Ernesto Field Programs
 Acquire and conduct regional geophysical surveys to evaluate deep prospects
 Perforate prospective horizons currently behind pipe and below bridge plugs
 Evaluate recompletion opportunities for workovers on deep wells
 Examine potential for hydraulic fracturing
 Current net production approximately 150 bopd (20.5º API)
 Field management/recompletions increased 2014 production by approx. 25%
 2014 guidance increased to 51,600 barrels per annum
10

11. CANOEL ITALIA S.R.L. Exploration Permits
11

12. Asset Highlights - Italy
PRODUCING ASSETS
 Licences cover 847 km2 (209,209 acres); net land holdings of 369 km2
(91,143 acres)
 Six (6) operated onshore gas concessions
 Three (3) additional non-operated gas concessions
 No royalties payable on current Italian production
 Current production of 487 mcf/day (approximately 81 boepd)
 Estimated 190 boepd behind pipe, ready to be tied in
12

13. Asset Highlights - Italy
NEAR TERM PRODUCTION CATALYSTS
 Estimated 190 boepd to be tied in during 2014
 CAPEX budget fully funded from cash flow and estimated at $400,000
 Production pending from two operated onshore gas concessions:
1. Torrente Vulgano (100% working interest)
 Recoverable gas estimated at ~851 mmcf *
2. Canaldente (100% working interest)
 Recoverable gas estimated at ~713 mmcf *
*Independent engineering evaluations by ENI and Ministry of Economic Development
13

14. Outlook for Italy
 Italian gas demand remains strong, with pricing at €0.31 to €0.38 per m3
(approx. CDN$11.40 to $13.50 per mcf)
 Government gas royalties limited to 7.0% for onshore permits, with no
royalties payable on production of less than 700 mmcf per field per year
 Proved remaining reserves have been estimated at 41 Million cubic meters
(approx. 1.3 bcf)
 Growth potential with several undeveloped properties with exploration
permits and applications totalling ~1,285 km2 (317,523 acres)
 Pending NI 51-101 report for consolidated Italian interests
14

15. Libya Developments
 Representative office established in Tripoli, Libya
 Canoel has been approved to conduct petroleum trading in Libya and was placed
on list of Authorized Traders by the Libyan National Oil Company (NOC)
 Canoel has created an Energy Trading Division under guidance of the Board
and senior management
 First phase of corporate strategy to position Canoel with Libyan Government and
NOC validated with presentation of current international operations
 Negotiations ongoing directly with the Libyan National Oil Company to further
acquisition of shut in production estimated at 7000 – 12,000 bopd
15

16. Summary
 Highly prospective new drilling opportunities on core Argentina properties
 Drilling on adjacent lands by Argentinean National Company (YPF) has
yielded ~1000 bopd per well with multiple completions
 Canoel has been authorized to conduct petroleum trading in Libya and was
placed on list of authorized traders by the Libyan National Oil Company
 First phase of corporate strategy to acquire shut in Libyan fields with
production of 7,000 - 12,000 bopd now validated
 Production from two new Italian onshore fields - Torrente Vulgano and
Canaldente - a potential catalyst for Canoel
16

17. Disclaimer
Certain statements in this presentation constitute forward-looking statements under applicable securities legislation. Such statements are generally identifiable by the terminology used, such as
“may”, “will”, “could”, “would”, “anticipate”, “believe”, “intend”, “expect”, “plan”, “estimate”, “budget”, “outlook” or other similar wording. Forward-looking information includes, but is not limited
to, reference to business strategy and goals, future capital and other expenditures, reserves and resources estimates, drilling plans, construction and repair activities, the submission of development
plans, seismic activity, production levels and the sources of growth thereof, project development schedules and results, results of exploration activities and dates by which certain areas may be
developed or may come on-stream, royalties payable, financing and capital activities, contingent liabilities, environmental matters, government approvals and completion of current negotiations. By
its very nature, such forward-looking information requires Canoel International Energy Ltd. to make assumptions that may not materialize or that may not be accurate. This forward-looking
information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed
or implied by such information. Such factors, include but are not limited to: imprecision of reserves and resources estimates, ultimate recovery of reserves, prices of oil and natural gas, general
economic, market and business conditions; industry capacity; competitive action by other companies; fluctuations in oil prices; refining and marketing margins; the ability to produce and transport
crude oil and natural gas to markets; the ability to market and sell natural gas under its production sharing contracts; the effects of weather and climate conditions the results of exploration and
development drilling and related activities; fluctuations in interest rates and foreign currency exchange rates; the ability of suppliers to meet commitments; actions by governmental
authorities, including increases in taxes; decisions or approvals of administrative tribunals; changes in environmental and other regulations; risks attendant with oil and gas operations, both domestic
and international; international political events; expected rates of return; and other factors, many of which are beyond the control of Canoel International Energy. More specifically, production may
be affected by such factors as exploration success, production start-up timing and success, facility reliability, reservoir performance and natural decline rates, water handling, and drilling progress.
Capital expenditures may be affected by cost pressures associated with new capital projects, including labor and material supply, project management, drilling rig rates and availability, and seismic
costs. These factors are discussed in greater detail in filings made by Canoel International Energy with the Canadian provincial securities commissions.
Readers are cautioned that the foregoing list of important factors affecting forward-looking information is not exhaustive. Furthermore, the forward-looking information contained in this
presentation is made as of the date of this presentation and, expect as required by applicable law, Canoel International Energy does not undertake any obligation to update publicly or to revise any
of the included forward-looking information, whether as a result of new information, future events or otherwise. The forward-looking information contained in this presentation is expressly qualified
by this cautionary statement. This Presentation is being issued by Canoel International Energy Limited (the “Company” or “Canoel”) to a limited number of parties to assist them in evaluating the
Company for information purposes only. This Presentation does not constitute or form part of an offer or invitation for the sale or purchase of securities or any of the businesses or assets described in
it.
This information in this Presentation, which does not purport to be comprehensive, has been provided by the Company and has not been independently verified. This information has been prepared
in good faith, but no representation or warranty, express or implied, is or will be made, and no responsibility or liability is or will be accepted by the Company, or by any of its
advisers, officers, employees or agents, in relation to the accuracy, completeness or fairness of the information, opinions or projections contained in this Presentation or any other written or oral
information made available to any prospective investor or its advisers and any such liability is expressly disclaimed.
All statements of opinion and/or belief contained in this Presentation, all views expressed and all projections, forecasts or statements relating to expectations regarding future events or the possible
future performance of the Company, represent the Company’s own assessment and interpretation of the information available to it as at the date of this Presentation. Past performance is no guide
to future performance investments can go up as well as down, and investors may not get back all that they have invested.
If you are uncertain with regards to any of the information contained within the presentation you should seek in independent professional financial advice.
17