Arrow Exploration Corp. · TSXV:AXL
Arrow Exploration — Investor Presentation (February 2024)
40 slides from Arrow Exploration's investor presentation, February 2024
Slide 1: Arrow Exploration Corporate Presentation February 2024
ARROW EXPLORATION Growing & Socially-Responsible Colombia-Focused Energy Company AIM|TSXV : AXL February 2024 Corporate Presentation Unless stated otherwise, all dollar figures refer to US dollars ARROW EXPLORATION CORP. (TSXV | AIM : AXL)
Slide 2: Disclaimer
Disclaimer IMPORTANT INFORMATION The content of information contained in this presentation (the “Presentation”) has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (“FSMA”). Reliance upon this Presentation for the purpose of engaging in any
Slide 3: Arrow Exploration
Arrow Exploration Growing & Socially-Responsible Colombia-Focused Energy Company $127 $143 2 Production Capacity 3,000+ 7.9 Mmboe 2P 3.9 Mmboe 2P million million opportunity rich Corporate Carrizales Norte 2P Corporate 2P Carrizales Columbian boe/d reserves – Year reserves – Aug reserves – YE Norte
Slide 4: Corporate Snapshot
Corporate Snapshot CN-2 on production Spud RCE-6 RCE-3 on RCE-4 on production production CN-3 on RCE-5 on Ubaque oil RCE-7 & RCE-8 production production discovery at RCE on production CN-1 discovery Institutional 33.4% Share Ownership Market at Dec 31, 2023 Retail 19.6% Canacol 21.0% $61M USD($84M $
Slide 5: 2024 Board Approved Budget
2024 Board Approved Budget Funded through cash balance and operations cash flow. No external funding sources required. 2024 – 15 well drilling program. • CN development focus • Low Risk Exploration at Mateguafa, Baquiano, Carrizales Noroeste 2024 - $44 million capital est. Infrastructure • Budget fu
Slide 6: Seasoned Executive Team and Board
Seasoned Executive Team and Board 190+ years 8 companies TSX / TSX-V / AIM 15+ Combined management experience Founded → grown → sold Public company expertise O&G jurisdictions worked in P. Gage Jull Marshall Abbott Grant Carnie Anthony Zaidi Ravi Sharma Ian Langley Executive Chair CEO & Director Sen
Slide 7: Committed to ESG Best Practices
Committed to ESG Best Practices Environment Commitment to land preservation extends beyond regulatory compliance, encompassing a comprehensive approach to minimize ground disturbance, prevent spills, and restore sites to their natural state. Biodiversity Ensured to minimizing our environmental footp
Slide 8: ESG In Action
ESG In Action Community Program: Aguachica (Communities of Loma de Corredor and La Ye Village) In 2023, we have spent over $500,000 on social and environmental projects. Over 1,600 Colombians employed and contracted over the last 5 years, total spent of $3 million with local companies. Water improve
Slide 9: Colombian Oil & Gas Industry
Colombian Oil & Gas Industry Key Takeaways Attractive Great Brent Oil Fiscal Terms Infrastructure Pricing Excellent pricing Government very Abundant based on Brent less supportive of the oil infrastructure with Vasconia Differential and gas industry spare pipeline ($2-$5/bbl) (40%+ country’s capacit
Slide 10: Attractive Fiscal Terms
Attractive Fiscal Terms Still top decile fiscal regime worldwide. 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% USA (Texas) Colombia Argentina Brazil Bolivia Canada (Alberta) Peru Mexico Royalty Tax PAGE 9
Slide 11: Asset Overview
Asset Overview Current Asset Country Basin W.I. Production Operator Capacity(3) Colombia (boe/d, net) Sedimentary Basins Middle 1. Tapir Colombia Llanos 50%(1) 2,770 Arrow(2) Magdalena Core Assets Valley 2 2. Oso Pardo Colombia MMV 100% 130 Arrow Bogota 1 LLanos 3. Ombu Colombia Putumayo 10% 0 Emera
Slide 12: 2022 Year-End & Aug 2023 Carrizales Norte Reserves
2022 Year-End & Aug 2023 Carrizales Norte Reserves Price Deck YE 2022 Aug 2023 Year $/bbl $/bbl Brent Brent 11,680 2023 85.00 76.50 $244,125 Carrizales 2024 82.80 77.50 Norte 2025 80.50 78.00 2026 82.00 79.00 Year-End $205,196 2027 84.20 81.00 2028 85.88 84.00 2029 87.60 85.58 7,961 2030 89.35 87.29
Slide 13: Llanos Basin
Colombian Oil Portfolio Llanos Basin ARROW EXPLORATION CORP. (TSXV | AIM : AXL)
Slide 14: Llanos Basin
Llanos Basin The ‘Park Avenue’ of Colombia’s Oil Industry – Safe, Secure and Highly-Desirable The Tapir Block in the Llanos is surrounded by some of the largest producers in Colombia • Parex: 51,143 boe/d • Frontera: 41,586 boe/d • GeoPark: 35,465 boe/d • Gran Tierra: 29,493boe/d • Perenco: 21,000 b
Slide 15: Tapir Block: Prospects & Leads
Tapir Block: Prospects & Leads Mateguafa Attic Prospect Objectives Multi-Zone Carbonera/Gacheta A C7 Mateguafa Oeste Carbonera B Gacheta Capullo Carbonera C Lower Gacheta Baquiano Carbonera/Gacheta B Ubaque Carbonera E Carbonera D Carrizales Norte Field Carrizales Noroeste Macoya Este Rio Cravo Este
Slide 16: New 3D Data Reveals North Tapir Prospectivity
New 3D Data Reveals North Tapir Prospectivity Mateguafa Oeste prospect PAGE 15
Slide 17: Tapir Block Current & Future Production
Current & Future Production Tapir Block (50% W.I.)* Overview 1. Rio Cravo Este (RCE) Vertical type well • 8 producing wells IP forecast (per zone):360 bbls/d, net • RCE-7 and RCE-8 on production • Additional drilling targets and recompletion opportunities Payback*: 3 months, 61,000 bbls 2. Carrizale
Slide 18: Carrizales Norte Prospect
Carrizales Norte Drilling Operations Carrizales Norte Prospect ARROW EXPLORATION CORP. (TSXV | AIM : AXL)
Slide 19: Carrizales Norte Discovery and Extending the Field
Future Production Carrizales Norte Discovery and Extending the Field (50% W.I.*) • Carrizales Norte-1 (CN-1) was spud on May 1st, 2023 • On trend with the prolific Carrizales field discovered by C&C Energia in 2007 • 24 wells drilled to date; as of December 2019, the field had produced approximately
Slide 20: CN-2: Ubaque
CN-2: Ubaque • The CN-2 appraisal well spud on July 20th and reached Net Pay API Oil Production total depth on July 30th Zone (ft) Gravity Rate (bbl/d) * • The well encountered a total of 149 feet net oil pay (TVD) within the Carbonera C7, Gacheta, and Ubaque Lower Ubaque 50 13.7o 297 formations Upp
Slide 21: Carrizales Norte Ubaque Structural Cross Section
Carrizales Norte Ubaque Structural Cross Section A B Ubaque87K Producer Inferred Paleo-high and pinch-out of Ubaque Main Reservoir B A PAGE 20
Slide 22: Carrizales Norte: Horizontal Well Opportunity
Carrizales Norte: Horizontal Well Opportunity ▪ The Ubaque reservoir encountered at Carrizales Norte is world-class: up to 70 feet of stacked shoreface sands with Carrizales Norte 26-30% porosity and 7-10 Darcies Ubaque Horizontal permeability Well Program ▪ Low viscosity 13.40 crude and strong wate
Slide 23: Horizontal Well Schematic Cross-section
Horizontal Well Schematic Cross-section PAGE 22
Slide 24: Carrizales Norte: C7 Potential
Carrizales Norte: C7 Potential ▪ Reservoirs consist of channelized sand bodies with excellent characteristics – porosity of 28 – 34% and multi-Darcy Carrizales Norte permeabilities Conceptual C7 ▪ Light oil (>30o API) and strong water Development Carrizales Norte drive allow for very high initial Pl
Slide 25: Carrizales Noroeste Prospect
Carrizales Noroeste Prospect Secondary Fault Carrizales Norte Prospect CN Prospect Primary Fault Carrizales Noroeste Prospect PAGE 24
Slide 26: Carrizales Noroeste Prospect
Carrizales Noroeste Prospect Ubaque Depth Structure ▪ Separate fault block adjacent to Carrizales Norte discovery Carrizales Norte ▪ Potentially material reserve additions to Ubaque Ubaque Pool Main pool ▪ Additional upside in C7 and Gacheta zones Carrizales Norte-5 ▪ Prospect will be tested with Ca
Slide 27: Mateguafa Attic Prospect
Mateguafa Attic Prospect ▪ Mateguafa field discovered in 1998. Four wells were drilled, two produced oil from Carbonera C7 sands (total 630k barrels) ▪ Original wells drilled on poor quality 2D seismic grid. Recently acquired 3D data shows a different fault configuration and a large area of closure
Slide 28: Baquiano Prospect
Baquiano Prospect ▪ Typical Llanos Basin prospect: three-way structural closure against a fault ▪ Multiple reservoir targets: C7, Guadalupe, Gacheta, & Ubaque ▪ Located approximately 3.5 km northeast of Carrizales Norte discovery on same fault trend PAGE 27
Slide 29: Carbonera C7 Stratigraphic Prospects
Carbonera C7 Stratigraphic Prospects Seismic Amplitude Slice – C7C Level Seismic Amplitude Slice – C7A Level ▪ Carbonera channel sands are classified as “low impedance” due to their excellent porosity and are characterized by strong negative seismic amplitudes ▪ Numerous large channel systems can be
Slide 30: Mateguafa Oeste & Capullo Prospects
Mateguafa Oeste & Capullo Prospects ▪ Large prospects enhanced by fault trends ▪ Truncation of Ubaque Main sands against depositional edge ▪ Look-alikes to Carrizales Norte Ubaque discovery ▪ Land acquisition underway, with environmental studies to follow PAGE 29
Slide 31: Regional Seismic Profile
Regional Seismic Profile NW SE PAGE 30
Slide 32: South Tapir Leads
South Tapir Leads ▪ Southern area of the Tapir block remains very under-explored ▪ Two wells were drilled in early 1990’s on 2D seismic. One of these, Macoya-1, had oil shows despite being Macoya Este lead located outside of any structural closure ▪ Two large structural leads have been identified bu
Slide 33: Rio Cravo Este Field – Future Development
Rio Cravo Este Field – Future Development Carbonera C7 Depth Structure Map Carbonera C7 Pool Outline Future C7 Development Locations Future Gacheta Development Area Future Ubaque Development Area PAGE 32
Slide 34: 2024 Prospect Matrix – Tapir Block
2024 Prospect Matrix – Tapir Block MM$ KBbls MONTHS BOPD NPV10 OIL RECOVERY BREAKEVEN IP Gross IP Net RANKING CNB-H1 18.57 1,393 3 2,246 1,123 1 CNB-H2 15.41 1,193 3 1,925 963 2 CNB-H4 13.83 1,094 4 1,765 882 3 CNB-H3 12.24 995 4 1,604 802 4 CNB-H5 10.66 895 5 1,444 722 5 CN-4 6.30 398 5 642 321 6 C
Slide 35: MMV Basin
Colombian Oil Portfolio MMV Basin ARROW EXPLORATION CORP. (TSXV | AIM : AXL)
Slide 36: Oso Pardo Field (100% W.I.)
Current Production Oso Pardo Field (100% W.I.) Overview Oso Pardo Site Photos • Discovered in 2013 by Canacol; discovery well (Oso Pardo-1) had an IP of 200 bbls/d from stacked sands of the Umir formation • 2 appraisal wells drilled in 2014; 150 ft proven oil column to Lowest Known Oil (LKO) • Accor
Slide 37: Oso Pardo Extension (100% W.I.)
Future Opportunity Not Factored Into Production Forecast Oso Pardo Extension (100% W.I.) Existing block does not require a bid process Overview Oso Pardo Extension Potential Production Profile* • Gaffney, Cline & Associates reserve study* snapshot: GCA Cases Oil EUR/well (Mbbl) Capex ($M) Pre-Tax NP
Slide 38: Oso Pardo Development Concept
Oso Pardo Development Concept PAGE 37
Slide 39: Near Time Catalyst
Near Time Catalyst Complete In Progress Future New Discovery Pivot into low-risk CN discovery well Drill 6 Rio Cravo Horizontal exploration 3D on the Tapir Multiple Tapir East Seismic Oso Pardo and two follow up Este wells on Tapir development drilling. Multiple Accretive M&A Block development Proje
Slide 40: Corporate Information
203, 2303 – 4th Street SW Calgary Alberta T2S 2S7 Marshall Abbott CEO T: 1 (403) 651 5995 E: mabbott@arrowexploration.ca Corporate Information Joe McFarlane CFO T: 1 (403) 818 1033 E: jmcfarlane@arrowexploration.ca Auditors: Ernst & Young LLP Legal Counsel: Gowling WLG (Canada) LLP NOMAD: Canaccord
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