July Fact Sheet

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TSX-V SHO OTCQX SHOAF Price as of June 15, 2012 (in CAD) $0.31 Shares Outstanding 232,675,283 Market Capitalization (in CAD) $72.1 million 52 Week Range (in CAD) $0.20 – $0.750 Shona is an international oil and natural gas exploration, development and production company focusing on South America, specifically Colombia and Peru. The Company holds interests in the operated Esperanza block located in Colombia’s Lower Magdalena Basin; the Serrania Los Picachos and Macaya Blocks in Investment Highlights One producing gas block and three oil exploration Lower Magdalena Basin; the Serrania, Los Picachos and Macaya Blocks in Colombia’s Caguan Basin; and Block 102 in Peru’s Maranon Basin. blocks in Colombia and one oil exploration block in Peru Production with stable cash flow - delivering a total of 14.0 million cubic feet per day (mmcfd) of firm gas sales under current contracts, increasing to 15.5 mmcfd firm in January 2014. Daily production capacity of 25 mmcfd with current wells, increasing to over 45 mmcfd with additional development of existing assets Fully funded development program with favorable economics Oil prospects on trend, or in proximity to, existing production Corporate Strategy Acquire additional sales contracts for existing gas capacity on the Esperanza Block Increase value of existing blocks through drilling of identified prospects and subsequent development Seek additional assets on trend, or in proximity to, existing production, with low development costs and attractive fiscal terms, utilizing current cash flow for funding Fiscally responsible allocation of capital

Transcript of July Fact Sheet

Page 1: July Fact Sheet

TSX-V SHOOTCQX SHOAFPrice as of June 15, 2012 (in CAD) $0.31Shares Outstanding 232,675,283Market Capitalization (in CAD) $72.1 million52 Week Range (in CAD) $0.20 – $0.750

Shona is an international oil and natural gas exploration, development and production company focusing on South America, specifically Colombia and Peru. The Company holds interests in the operated Esperanza block located in Colombia’s Lower Magdalena Basin; the Serrania Los Picachos and Macaya Blocks in

Investment Highlights

• One producing gas block and three oil exploration

Lower Magdalena Basin; the Serrania, Los Picachos and Macaya Blocks in Colombia’s Caguan Basin; and Block 102 in Peru’s Maranon Basin.

p g g pblocks in Colombia and one oil exploration block in Peru

• Production with stable cash flow - delivering a total of 14.0 million cubic feet per day (mmcfd) of firm gas sales under current contracts, increasing to 15.5 mmcfd firm in January 2014.

• Daily production capacity of 25 mmcfd with current y p p ywells, increasing to over 45 mmcfd with additional development of existing assets

• Fully funded development program with favorable economics

• Oil prospects on trend, or in proximity to, existing production

Corporate Strategy

• Acquire additional sales contracts for existing gas capacity on the Esperanza Block

• Increase value of existing blocks through drilling of identified prospects and subsequent development

• Seek additional assets on trend, or in proximity to, existing production, with low development costs and attractive fiscal terms, utilizing current cash flow for funding

• Fiscally responsible allocation of capital

Page 2: July Fact Sheet

Esperanza Block (Colombia)• 100% owned and operated by Shona’s

Serrania Block (Colombia)

• Shona: 37.5%, Hupecol (Operator): 50%, Houston American Energy: 12.5%

• 100% owned and operated by Shona ssubsidiary, Geoproduction; 60,002 acres

• 95 BCF 2P and 173 BCF 3P Net Reserves

• High value gas delivery contracts increasing over next 3 years

• Additional 30,000 acres being explored with 3D seismic

• 110,769 gross acres; 41,538 net acres

• Targeting Mirador formation – Capella Field (seven miles south) has potential recoverable reserves of 200 MMBLS of 10-20° oil

• Fault trap look-alike to Capella Field and very large four-way closure

3D seismic• Exploration drilling commencing 2013

Los Picachos & Macaya Blocks (Colombia)

• Shona: 37.5%, Hupecol (Operator): 50%, Houston American Energy: 12.5%

• 248 025 gross acres; 93 0089 net acres• 248,025 gross acres; 93,0089 net acres

• Two fault trap prospects on Los Picachos and Macaya concessions

Management

James L. PayneChairman, CEO &

Board of Directors

James L. Payne

Ted M. Anthony

Block 102 (Peru)

• Shona: 36.5%, Pluspetrol (Operator): 51%, Andean Oil and Gas: 12.5%

Co-Founder

John R. WomackPresident & Co-Founder

Larry D. LeavellChief Operating Officer

Michael S. WilkesCFO and Controller

Shetal MentlewskiVP f Ad i i t ti &

y

Gregory D. Elliott

Edgar G. Hotard

Gary R. Petersen

Jordan R. Smith

Contact Information

675 Bering Drive, Suite 300Houston, Texas, 77057

• 313,023 gross acres; 114,253 net acres

• Exploration focus on trend with higher reserve potential

• Offsets large infrastructure with oil pipeline

VP of Administration & Legal; Corporate Secretary

David K. GianTreasurer

Ricardo MendietaVP, Colombia

Houston, Texas, 77057Phone: (713) 622-8809Fax: (713) 622-4431

[email protected]