1. CALFRAC Confidential information Business Opportunities in Latin America in Turbulent Times Umberto Marseglia – VP Global Business Calgary, March 5 th 2015

2. CALFRAC all rights reserved Historical Activity

3. CALFRAC all rights reserved Oil & gas business (de)motivators Geology Reservoir Quality Production Capabilities OFS Infrastracture Technology availability Commerciality Financial Capabilities Political Stability Regulatory Regime and Environment E&P Business Logics & motivators HSESecurity Risk Mitigation & Management Efficiency & Predictibility General Infrastracture Other Development Constraints

4. CALFRAC all rights reserved Opportunities Enablers  Efficiency x-pollination  Cost, Process, Technology  Know how value  From engineering to business models  Political & financial & other alignments  Agreements, Sponsors, Investment conditions  Activity fluctuations, Timing  Regulatory regime

5. CALFRAC all rights reserved Example of Opportunities Geology

6. CALFRAC all rights reserved Conclusions  Several good opportunities at possible high profitability  Market complementarities & several compatibilities  Latin America reality often much better that perception  Take into account possible “system” inefficiencies  Due diligence is a critical and complex component  Planning and contingency planning are very important  Consider diversity of approach between cultures

7. CALFRAC all rights reserved Thank you for your attention ! Umberto Marseglia – VP Global Business umarseglia@calfrac.com