Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• The outbreak of COVID-19 resulted in the suspension of exploration activities in the VMM-18 Block in Colombia from March 2020 to September 2020, and again from December 2020 to February 2021.
• Delays in the municipal permits’ procurement process and other delays related to COVID-19 impacted exploration activities.

Mitigation Strategies

• The Company requested and received a one-year extension from the ANH for Phase 2 of the exploration period of the E&P Contract of Block VMM-18.
• The Company plans to apply for an additional 1-year extension permit to conclude the required Phase II exploration program.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Third-party Assurance: Deloitte LLP

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Exploration, development and operational risks inherent in the oil and gas industry; changes in government policies and regulations; the ability to obtain the necessary environmental permitting; challenges in profitable production or New Stratus’ ability to dispose of its interest on an advantageous basis; global economic and commodity price volatility.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Third-party Assurance: Deloitte LLP

Environmental Metrics

ESG Focus Areas

• Environmental impact minimization
• Safety
• Sustainable investments for local communities

Environmental Achievements

• Minimizing environmental impact of operations (mentioned as a commitment in the report, but no quantified achievement is provided).

Social Achievements

• Commitments to maintain and improve high standards of safety and undertake long-term sustainable investments for the benefit of local communities and stakeholders.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Securing adequate capital
• Exploration, development and operational risks inherent in the oil and gas industry
• Changes in government policies and regulations
• Obtaining necessary environmental permitting
• Challenges in profitable production
• Ability to dispose of interests on an advantageous basis
• Global economic and commodity price volatility
• Potential title disputes or claims and limitations on insurance coverage
• Impact of increasing competition
• Success and timely completion of planned exploration and development projects
• Ability to obtain additional financing on satisfactory terms
• COVID-19 pandemic affecting work commitments and timelines
• Risk of not receiving approval for contract extension from the Ecuadorian government

Mitigation Strategies

• Negotiations with the Government of Ecuador to extend contracts to Blocks 16 and 67 and convert them to Production Sharing Contracts (PSCs)
• Plans to spend approximately US$200 million in 2023 and 2024 to extend contracts and increase production
• Measures taken to compensate for natural decline rates of reservoirs
• Application for time extension for work commitments in Colombia due to COVID-19
• Submission of support documentation for seismic testing to ANH in Colombia
• Continued evaluation of projects in Sub-Andean Basins and initiation of evaluation of opportunities in Brazil
• Overall strategy to increase production to approximately 50,000 boe/d within 3 to 5 years through acquisition and organic growth

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced area occupied by industrial facilities, internal roads, and right of way to 0.26% (367 hectares) of the total concession area (138,800 hectares).

Social Achievements

• Collaboration agreement with N.A.W.E (Nacionalidad Waorani del Ecuador) focusing on health, education, support to N.A.W.E. management and community leaders, and support to the development of communities.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• 18-day nationwide labor strike

Mitigation Strategies

• The strike was resolved at the end of June.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Completed 82% of 67 pending environmental issues related to Blocks 16 and 67 reversion process in Ecuador by March 31, 2024.
• Six environmental audits approved in 2023 and two more in Q1 2024 with minor findings; no environmental liabilities indicated.

Social Achievements

• Delivered three community projects in Ecuador (including a health center) as part of the reversion process, fulfilling commitments to Waorani and Kichwa communities.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Potential delays in Venezuela due to US sanctions, incomplete well data, and difficulty retaining qualified personnel.
• Uncertainty in obtaining necessary geological and technical data for well reactivation in Venezuela.
• Supply chain interruptions affecting equipment acquisition and delivery in Venezuela.
• Contingencies related to Ecuadorian government claims (Petroecuador EP Shushufindi Agreement, Law 122, Auca Process, Yulebra, Culebra).

Mitigation Strategies

• Challenging the procedures initiated by Petroproducción in Ecuador.
• Challenging payment requests from Petroecuador before the Tax Court and National Court of Justice in Ecuador.
• Filing an extraordinary protection action before the Constitutional Court in Ecuador.
• Working with environmental authorities to conclude minor administrative matters in Ecuador.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed