Sho canaccord presentationmay92012

c o r p o r a t e p r e s e n t a t i o nc o r p o r a t e p r e s e n t a t i o n

2012

Forward Looking Statements

In the interest of providing potential investors with information regarding Shona Energy Company, Inc. (“Shona"), including management's assessment of the future plans and operations of Shona,certain statements contained in this corporate presentation constitute forward-looking statements or information (collectively "forward-looking statements") within the meaning of applicable securitieslegislation. Forward-looking statements are typically identified by words such as "anticipate", "continue", "estimate", "expect", "forecast", "may", "will", "project", "could", "plan", "intend", "should","believe", "outlook", "potential", "target" and similar words suggesting future events or future performance. In addition, statements relating to "reserves" are deemed to be forward-looking statementsas they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and can be profitably produced in thefuture. Forward looking statements or information in this presentation include, but are not limited to, statements or information with respect to: the expected closing date and use of proceeds from thefinancing; potential reserves and future production with respect to current assets business strategy and objectives; development plans; exploration and drilling plans; reserve quantities and thediscounted present value of future net cash flows from such reserves; future production levels; wells drilled (gross and net); capital expenditures; cash flow; debt levels; operating and other costs;royalty rates and taxes.

With respect to forward-looking statements contained in this corporate presentation, Shona has made assumptions regarding, among other things: future capital expenditure levels; future oil andnatural gas prices; future oil and natural gas production levels; future exchange rates and interest rates; ability to obtain equipment in a timely manner to carry out development activities; ability tomarket oil and natural gas successfully to current and new customers; the impact of increasing competition; the ability to obtain financing on acceptable terms; and ability to add production andreserves through development and exploitation activities. Although Shona believes that the expectations reflected in the forward looking statements contained in this corporate presentation, and theassumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to placeundue reliance on forward-looking statements included in this corporate presentation, as there can be no assurance that the plans, intentions or expectations upon which the forward-lookingstatements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that thepredictions, forecasts, projections and other forward-looking statements will not occur, which may cause Shona's actual performance and financial results in future periods to differ materially from anyestimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, the ability ofmanagement to execute its business plan; general economic and business conditions; the risk of instability affecting the jurisdictions in which Shona operates; the risks of the oil and natural gasmanagement to execute its business plan; general economic and business conditions; the risk of instability affecting the jurisdictions in which Shona operates; the risks of the oil and natural gasindustry, such as operational risks in exploring for, developing and producing crude oil and natural gas and market demand; the possibility that government policies or laws may change orgovernmental approvals may be delayed or withheld; risks and uncertainties involving geology of oil and natural gas deposits; the uncertainty of reserves estimates and reserves life; the ability ofShona to add production and reserves through acquisition, development and exploration activities; Shona's ability to enter into or renew leases; potential delays or changes in plans with respect toexploration or development projects or capital expenditures; the uncertainty of estimates and projections relating to production (including decline rates), costs and expenses; fluctuations in oil andnatural gas prices, foreign currency exchange rates and interest rates; risks inherent in Shona's marketing operations, including credit risk; uncertainty in amounts and timing of royalty payments;health, safety and environmental risks; risks associated with existing and potential future law suits and regulatory actions against Shona; uncertainties as to the availability and cost of financing; andfinancial risks affecting the value of Shona’s investments. Readers are cautioned that the foregoing list is not exhaustive of all possible risks and uncertainties.

Any financial outlook or future oriented financial information in this corporate presentation, as defined by applicable securities legislation, has been approved by management of Shona. Such financialoutlook or future oriented financial information is provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautionedthat reliance on such information may not be appropriate for other purposes.

The forward-looking statements contained in this corporate presentation speak only as of the date of this corporate presentation. Except as expressly required by applicable securities laws, Shonadoes not undertake any obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise. The forward-looking statementscontained in this corporate presentation are expressly qualified by this cautionary statement.

The information contained in this corporate presentation does not purport to be all-inclusive or to contain all information that a prospective investor may require. Prospective investors are encouragedto conduct their own analysis and reviews of Shona, and of the information contained in this corporate presentation. Without limitation, prospective investors should consider the advice of theirfinancial, legal, accounting, tax and other advisors and such other factors they consider appropriate in investigating and analyzing Shona.

Barrels of Oil Equivalent•Barrels of oil equivalent (boe) is calculated using the conversion factor of 6 Mcf (thousand cubic feet) of natural gas being equivalent to one barrel of oil. Boes may be misleading, particularly if used inisolation. A boe conversion ratio of 6 Mcf:1 bbl (barrel) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at thewellhead.

Analogous Information•Certain noted drilling and completion data provided in this document may constitute "analogous information", such as mapping information obtained in geographical proximity to prospectiveexploratory lands to be held by Shona. Such information has been obtained from government sources, regulatory agencies or other industry participants. Management of Shona believes theinformation is relevant as it helps to define the reservoir characteristics in which Shona may hold an interest. Shona is unable to confirm that the analogous information was prepared by a qualifiedreserves evaluator or auditor or in accordance with the COGE Handbook and therefore, the reader is cautioned that the data relied upon by Shona may be in error and/or may not be analogous tosuch lands to be held by Shona.

Investment Highlights

Production with stable cash flowDelivering a total of 14.0 million cubic feet per day (mmcfpd) of firm gas sales, with the potential to increase to 24.0 mmcfpd under current contracts

Diverse portfolio of oil and gas assetsOil exploration program with 3 blocks in Colombia and 1 block in Peru

Existing gas production in northwest Colombia’s Magdalena BasinExisting gas production in northwest Colombia’s Magdalena Basin

Fully funded development program with favourable ec onomicsRelatively low development costs, attractive terms

Assets on trend or in proximity to existing product ionMultiple oil targets with growth potential on all blocks

Corporate Strategy

Increase value of existing blocksIncrease cash flow with additional gas sales contracts from Esperanza Block

Complete evaluation of unexplored area of Esperanza Block

Confirm potential of heavy oil potential in Caguan Basin in 1st Qtr 2013

Further evaluate the potential of Boa Prospect on Block 102 with long term testing

Identify and evaluate additional opportunities util izing current cash flowSeek assets on trend or in proximity to existing production, with low development costs and attractive fiscal terms

Consider higher-risk exploration opportunities that would allow later “sell downs”

Evaluate merger and acquisition opportunitiesCombination of Equals

Liquidity Event

Value Proposition

Exploration targets with significant upside underpinned by existing gas production contracts

Experienced management teamproviding increased exposure to additional

opportunities over time

Overview of Assets

PROPERTY OPERATORSHONA W.I.

GROSS ACRES

NET ACRES

Esperanza Block(Colombia)

Shona (Geoproduction) 100% 60,002 60,002

COLOMBIA

VENEZUELA

Serrania Block

Serrania Block

Esperanza Block

Esperanza Block

Los Picachos Block

Los Picachos Block

Macaya Macaya Serrania Block(Colombia) Hupecol 37.5% 110,769 41,538

Los Picachos Block(Colombia) Hupecol 37.5% 52,771 19,789

Macaya Block(Colombia) Hupecol 37.5% 195,254 73,220

Block 102(Peru) Pluspetrol 36.5% 313,023 114,253

TOTAL 731,819 308,803

PERU

ECUADORECUADOR

BRAZIL

BOLIVIA

Macaya Block

Macaya Block

Block 102Block 102

Esperanza Location & Infrastructure

Pacific Rubiales(La Creciente field

60 MMCFPD)

Pacific Rubiales(La Creciente field

60 MMCFPD)

PromigasPromigas

7

OGX(Recently awarded block

w/ $24 MM work program); Surrounding

Esperanza

OGX(Recently awarded block

w/ $24 MM work program); Surrounding

Esperanza

Esperanza Block(Nelson discovery)Esperanza Block(Nelson discovery)

Cerro MatosoCerro Matoso

Esperanza Block

100% owned and operated by Geoproduction (wholly-owned subsidiary of Shona)

Significant gas discovery at Nelson: 164 billion cubic feet* (BCF) (gross)

Canaflecha Field

Canaflecha Field

Esperanza Block

Esperanza Block

Arianna FieldArianna Field

Katana FieldKatana Field

45 sq kmProgram (2007)




164 billion cubic feet* (BCF) (gross)

High value gas delivery contracts negotiated with production increasing over the next three years

Additional 30,000 acres being explored with 3D seismic

*Gross reserves as per Collarini Associates NI 51-101 compliant reserves report effective January 1, 2011

Nelson Field to commence production in December 2011

Nelson Field to commence production in December 2011



Stewart ProspectStewart

Prospect

Leads

Prospects

Production areas

Retained area

3D seismic programs

Palmer Prospects

Palmer Prospects

Additional leads

Additional leads

Colombia – Gas Transportation System

Cerro Matoso Contract (1):

Total of 19 MMCFPD for ten year term effectiveJanuary 1, 2012 as follows:

11.0 MMCFPD firm for 2012 and 2013

12.5 MMCFPD firm from January 2014 for the remainder of the 10 year term

Cerro Matoso Options:

During period of July 1, 2013 to Sept. 30, 2013 to

1The balance of the 19 MMCFPD is classified as interruptible for each of these periods.

During period of July 1, 2013 to Sept. 30, 2013 to elect to purchase up to and additional 3.5 MMCFPD firm effective January 1, 2014.

During period of Sept. 1, 2011 to June 30, 2013, Cerro Matoso has the option to take up to an additional 27 MMCFPD

Cerro Matoso has two months to commit to purchase the additional volumes, if they fail to do so, Shona is free to market the additional volumes to third parties

E2 Contract:

Sell 3 MMCFPD firm, 2 MMCFPD interruptible for total 5 MMCFPD

7 year term

Esperanza Block: Monetization

ASSET ECONOMIC IMPACTSUPPLY CAPABILITY

$16MM annual after-tax cash flow for 10 yrs

$6MM incremental annual after-tax

cash flow for 8 yrs

Current Development with existing firm contracts

14 MMCFPD

Increase in current contracts5 MMCFPD

Colombia Esperanza

Block

cash flow for 8 yrs

$23MM incremental annual after-tax cash flow

+ 100 BCF Possible ReservesDefined prospects

Potential $30MM incremental annual after-tax cash flow

TBD30,000 Acres to be Evaluated

Further Nelson Field Development

(with $10MM CAPEX) 21 MMCFPD

Prolific Andean Foreland Basin

Shona’s oil prospects are located within the Andean Foreland Basin – a region of significant oil discovery

Efficient oil generation and migration systems

COLOMBIA

VENEZUELA

Serrania,Los Picachos,

& Macaya Blocks

Serrania,Los Picachos,

& Macaya Blocks

Llanos BasinLlanos Basinsystems

Excellent quality reservoirs

Low relief structures trap oil

Over 3 billion barrels of recoverable oil have been found in these basins

All these basins continue to be actively explored

PERU

ECUADORECUADOR

BRAZIL

BlocksBlocks

Maranon Basin

Maranon Basin

Block 102Block 102

Oriente BasinOriente Basin

Putumayo Basin

Putumayo Basin

Existing Oilfields

Southern Colombian Heavy Oil Belt

Serrania Serrania

Macaya Block

Macaya Block

LlanosBasin

Rubiales Field Rubiales Field Serrania Block

Serrania Block

Heavy Oil Belt

Heavy Oil Belt

Los Picachos Block

Los Picachos Block

Caguan BasinOrito Field

> 230 MMBLS produced; 1,919 bopd

Orito Field > 230 MMBLS

produced; 1,919 bopd

Capella Field 2.5 billion bbl

OOIP

Capella Field 2.5 billion bbl

OOIP

Rubiales Field 167,343 bopdRubiales Field 167,343 bopd

Putumayo Basin

Exploration Blocks

Production AreaSerrania Block

Heavy Oil Belt

Natural Reserves

Serrania, Los Picachos & Macaya

Working interests:Shona 37.5%Hupecol (operator) 50%Houston American Energy 12.5%

358,794 gross acres, 134,547 net acres

Macaya Shona-Hupecol-

Macaya Shona-Hupecol-

CedrelaCanacolCedrelaCanacol

PortofinoMonterricoPortofino

Monterrico

OmbuSinochem -

Canacol

OmbuSinochem -

Canacol

Los PicachosShona –

Hupecol - HAE

Los PicachosShona –

Hupecol - HAE

SerraniaShona –

Hupecol - HAE

SerraniaShona –

Hupecol - HAECapella FieldCapella Field

acres

Licenses: 6 years of exploration, 24 years of production

Serrania licensed in 2008Macaya and Los Picachoslicensed in 2011

Royalties:0 to 5,000 BOPD 8%5,001 to 125,000 BOPD 8-20% Macaya

Los Picachos

Shona-Hupecol-HAE

Shona-Hupecol-HAE

DurilloEmeraldDurillo

Emerald

CeibaEmerald

CeibaEmerald

TamarinCanacolTamarinCanacol

CAG 5Metapetroleum -

Talisman


TalismanHeavy Oil BeltHeavy Oil Belt


Talisman


Talisman

CanacolCanacol

Serrania Targets

Serrania Block

Serrania Block

In management’s opinion, acreage contains one of largest undrilled 4-way closure structures in northern South America – 150 MMBO recoverable potential

Two fault trap prospects on Los Picachos and Macaya concessionsMacaya concessions

Serrania targets Mirador formation; production potential should be similar to the Capella Field (located 7 miles south with potential recoverable reserves of 200 MMBLS of 10 °°°°-12°°°° oil

Exploration drilling expected to commence in Q1 2013

Located in prolific Peruvian Maranon Basin

Working Interests:Shona 36.5%Pluspetrol (operator) 51%Andean Oil and Gas 12.5%

313,023 gross acres, 114,253 net acres

Block 102

Forestal 65 MMBOForestal

65 MMBO

Macusari Trend

Macusari Trend

Carmen 30 MMBOCarmen

30 MMBO

BoaBoa

AnacondaAnaconda

Licensed in 2006: 7 year exploration term and 30 year oil production term

Royalties:0 to 5,000 BOPD 5%5,001 to 100,000 BOPD 5-20%

Prospects:

Boa, Anaconda, Andoas Norte

Initiating long-term production testing of the Boa prospect in Q2 2012

Huayuri Sur 50 MMBO

Huayuri Sur 50 MMBO

Dorissa80 MMBODorissa

80 MMBO

Capahuari Trend

Capahuari Trend

Capahuari Sur 175 MMBO


Andoas NorteAndoas Norte

Capahuari Norte 24 MMBO

Capahuari Norte 24 MMBO

Block 102 Targets

Capahuari and Macusari Trends

3 Prospects

Boa: 3D seismic with possibility similar to Carmen. Currently

Macusari Trend

Macusari Trend

Carmen 30 MMBOCarmen

30 MMBO

BoaBoa

AnacondaAnaconda

Capahuari Capahuari Huayuri Sur 50 MMBO

Huayuri Sur 50 MMBOsimilar to Carmen. Currently

evaluating Boa Oeste-1X

Anaconda: 2007 2D seismic data closure; 50± MMBO potential

Andoas Norte: 2007 2D seismic data closure; 20± MMBO potential light oil target

Dorissa80 MMBODorissa

80 MMBO

TrendTrend



Andoas NorteAndoas Norte

Capahuari Norte

24 MMBO

Capahuari Norte

24 MMBO

50 MMBO50 MMBO

Peru Block 102: Macusari Trend

SW

Macusari Trend

MQUEST Inter. — tem

Shona Assets: Monetization

ASSET ECONOMIC IMPACTSUPPLY CAPABILITY

Colombia Esperanza

Block

$16MM annual after-tax cash flow for 10 yrs

$6MM incremental annual after-tax

cash flow for 8 yrs

$23MM incremental

Current Development with existing firm contracts

14 MMCFPD

Increase in current contracts5 MMCFPD

Further Nelson Field Development

(with $10MM CAPEX) Block $23MM incremental annual after-tax cash flow

+ 100 BCF Possible ReservesDefined prospects

Potential $30MM incremental annual after-tax cash flow

TBD30,000 Acres to be Evaluated

(with $10MM CAPEX) 21 MMCFPD

Peru Block 102

Colombia: Serrania, Los Picachos and

Macaya Blocks

Boa, Anaconda, Andoas Norte and other leads TBD – Moderate Potential

TBD – Significant PotentialSerrania Anticline, Serrania

fault Trap, Los Picachos fault Trap and other Leads

2012 Goals

Complete resource evaluation of the Esperanza block with 3D seismic of the remaining 30,000 acres. Field work in progress.

Accelerate monetization of the Esperanza concession through additional gas sales

Commence drilling at Serrania in Q1 2013Commence drilling at Serrania in Q1 2013

Long term production testing of the Boa prospect in Peru’s Block 102

Create additional exploration opportunities

Evaluate participation in potential sector consolid ation activities

Capitalization & Financial Highlights

Common Shares 234,767,840

Voting 180,594,389

Non-voting 54,173,451

F/D Shares Outstanding 305,248,082

Cash at December 31, 2011 $21,143,000

Insider ownership 41% (46% F.D.)

Share price at December 31, 2011 $0.61

52 week range at December 31, 2011 $0.40 - $1.25

Market cap at December 31, 2011 $143.2 million

Management

James L. Payne, Chairman, Chief Executive Officer & Co-Foun der, MBA, Geophysical Engineer

Ex-Chairman, President and CEO of Nuevo Energy Company, October 2001 to May 2004

Ex-Vice Chairman of Devon Energy Corporation, September 2000 to January 2001

Ex-Chairman, President and CEO of Santa Fe Energy and successors, 1989 to 1999

International and Domestic Exploration and Operating career of 23 years with Chevron

Currently a director of Nabors Industries, Inc.

John R. Womack, President & Co-FounderJohn R. Womack, President & Co-Founder

Ex-Director of Land and Worldwide Negotiations at Nuevo Energy Company

Ex-President of Petrolera Santa Fe Energy, Santa Fe’s wholly-owned subsidiary operating in Argentina

Ex-Vice President of Land and Business Development at Santa Fe Energy

Larry D. Leavell, Chief Operating Officer

Ex-President of Devon Energy – Indonesia; Ex-Officer on the Indonesia Petroleum Association Board of Directors

Ex-Corporate Manager (HSE, Heavy Oil Upgrading, Marketing, International Production Manager) for Santa Fe Energy, over30-year career

Michael S. Wilkes, Chief Financial Officer and Controller

Served as Controller of Shona Energy Company since 2008

Ex controllers of Nuevo Energy and Santa Fe Energy and successors

Management (continued)

Shetal Mentlewski, Vice-President of Administration and L egal, Corporate Secretary

Serves Director of Corporate Development / Environmental Affairs in addition to above mentioned roles

Ex-Engineer for Halliburton Kellogg Brown & Root and Marathon Oil Company

Received J.D. from South Texas College of Law and B.S. in Chemical Engineering from Texas A&M University

David K. Gian, Treasurer

Ex-Business Development and Sales Manager, Oil States Industries

Received MBA from Acton MBA in 2006 and B.S. in International Business from Baylor UniversityReceived MBA from Acton MBA in 2006 and B.S. in International Business from Baylor University

Ricardo Mendieta, Vice–President, Colombia

Ex- Operations Vice - President for Latin America of Halliburton (Technology and consulting Div)

Ex Vice – President for Latin America of ION Geophysical Corporation

Previously worked in different international positions with Ecopetrol, Baker, Shell - TNO and Occidental

Served as Shona Energy (Colombia) Limited’s Country Manager in Colombia since July 2007

Board of Directors

Ted M. Anthony, Director

Managing partner of Babineaux, Poche’, Anthony & Slavich, LLC, as well as General Counsel of Geoproduction

Former managing partner of Perret Doise, APLC, as well as a petroleum engineer for Marathon Oil Company, Inc.

On the Board of Directors of Louisiana Reserve Development Corporation

Gregory D. Elliott, Director

Former President of Geoproduction

President of Workstrings, LLC and Superior Inspection Services

Petroleum engineer with 15 years experience working with Chevron prior to founding Workstrings in 1997.

Edgar G. Hotard , DirectorEdgar G. Hotard , Director

General Partner of HAO Capital and Chairman of the Monitor Group China and Senior Advisor to the Monitor Group

Former President & COO of Praxair Industries

On the Board of Directors of Global Industries and Albany International Corp.

James L. Payne, Chairman

See management

Gary R. Petersen, Director

On the Board of Directors of several EnCap portfolio companies and is a member of the board of Plains All American, Inc. and EVEnergy Partners

Member of the Independent Petroleum Association of America and the Houston Producers’ Forum

Jordan R. Smith, Director

Former President and CEO, Ramshorn Investments, Ltd., the exploration and production subsidiary of Nabors International, Ltd.

Former exploration executive for Chevron, Forest Oil Corporation, Wolf Oil and Energetics Inc.

Former Director of Clayton Williams Energy and Delta Petroleum Corp.

Questions?Questions?

Sho canaccord presentationmay92012

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