Arrow Exploration Corp. · TSXV:AXL
Arrow Exploration — Investor Presentation (April 2022)
31 slides from Arrow Exploration's investor presentation, Apr 25, 2022
Slide 1: Growing & Socially-Responsible Colombia-Focused Energy Company
ARROW EXPLORATION Growing & Socially-Responsible Colombia-Focused Energy Company AIM|TSXV : AXL April 2022 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 1,100 3 opportunity rich → 5 7.4 1.3 basins (Colombia 3,000 additional low- risk wells in 2022 Mmboe 2P reserves Mmboe Unrisked Prospective boe/d within 18 Resources +Canada) months Seasoned Pursuing Compelling executiv
Slide 4: Corporate Snapshot
Corporate Snapshot Operational Interim results update West Pepper Completion of announcement well on AIM production listing/financing Institutional 33.4% Market Share Ownership Retail 22.0% $37.6M $8.8M 213M Canacol 19.5% Market Cap Cash Shares O/S (303M fully-diluted) High Net Worth 18.8% Assets Ma
Slide 5: Near-Term Production Growth Expected to Be Driven By Multiple Catalysts
3,000 Near-Term Production Growth → boe/d target Q2 ‘23 Canada Capella Santa Isabel RCE Carrizales Norte Additional 3,000 drilling + M&A 2,500 Current 2,000 BOE/D 1,500 Q1 ‘21 1,000 500 0 → Expected to Be Driven By Multiple Catalysts 2020 2021 2022 2023 Option ….. …. Re-start Re-Start Tie-in AIM + Z
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 Joe McFarlane Bob Petryk Phil Miller Maria Charash Grant Carnie Anthony Zaidi Ravi Sh
Slide 7: Committed to ESG Best Practices
Committed to ESG Best Practices Environment Committed to limiting our impact on the climate, air, land and water by adhering to the highest standards of industry operating practices; support principles included in the UN’s Sustainable Development Goals. Community Involvement Develop community partne
Slide 8: Asset Overview
Asset Overview Production(3) Operator Asset Country Basin W.I. (boe/d, net) Colombia Sedimentary Basins Middle Magdalena Valley 2 1. Tapir (1) Colombia Llanos 50% 134 Arrow(2) Core Assets 2. Oso Pardo Colombia MMV 100% 118 Arrow Bogota 1 LLanos 3. Pepper Canada WCSB 100% 556 Arrow 4 4. Ombu Colombia
Slide 9: 2021 Year-End Reserves
2021 Year-End Reserves 12-31-2021 Price Deck Year $/bbl Brent 2022 74.50 133,990 11,541 2023 72.00 2024 69.50 2025 71.00 2026 72.00 2027 74.00 2028 76.00 2029 77.50 7,421 84,160 2030 79.00 2031 80.50 2032 82.03 2032+ +2% per year 3,049 25,424 1P (Mboe) 2P (Mboe) 3P (Mboe) 1P (NPV10%) 2P (NPV10%) 3P
Slide 10: Colombian Oil Portfolio: Llanos Basin
Colombian Oil Portfolio Llanos Basin ARROW EXPLORATION CORP. (TSXV | AIM : AXL)
Slide 11: Colombian Oil & Gas Industry
Colombian Oil & Gas Industry Key Takeaways Attractive Great Brent Oil Fiscal Terms Infrastructure Pricing Government very Abundant Excellent pricing supportive of the oil infrastructure with based on Brent less and gas industry spare pipeline Vasconia Differential (30%+ country’s capacity and no ($2
Slide 12: 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: 46,779 boe/d • Frontera: 40,599 boe/d • GeoPark: 38,131 boe/d • Gran Tierra: 24,463 boe/d • Perenco: 21,000
Slide 13: Tapir Block: Proximate Field Production
Tapir Block: Proximate Field Production 38.5 MMbbls Produced1 Oil Fields Prospects Leads Fault Trends Mateguafa Updip Mateguafa-4 Well Mateguafa-3 Well Mateguafa-1 Well Mateguafa-2A Well Mateguafa Oeste Capullo Corozos Sardinas 13.7 MMbbls Cum. Production Carrizales Norte 1.3 MMbbls Prospective Reso
Slide 14: Tapir Block: Features and Opportunities
Tapir Block: Features and Opportunities 1 Key Characteristics … 2 … Drive Opportunities Excellent subsurface fundamentals Multiple prospects plus additional follow-up wells on success Multiple high-quality reservoir targets Type-wells can deliver initial production (IP) of over 1,300 bbls/d Typicall
Slide 15: Tapir Block (50% W.I.) Current & Future Production
Current & Future Production Tapir Block (50% W.I.) Overview Tapir Block Potential Production (net to Arrow) • RCE 2021 year-end 3P reserves of 3.8 MMbbls (gross) / 1.9 MMbbls (net to Arrow’s W.I.) RCE Carrizales Norte 1. Rio Cravo Este (RCE) appraisal (up to 4-5 wells) 2,500 Type well • RCE-2 well s
Slide 16: RCE Well Locations | RCE-1 Recompletion
RCE Well Locations | RCE-1 Recompletion (50% W.I.) Near-Term RCE Well Locations 1. RCE-2 Development Well • Located within same local structural culmination as C7A Depth Map Top Gacheta Depth Map RCE-1 • Primary Objectives: C7, Gacheta & Ubaque 2. RCS-1 Development Well (formerly named RCE-3) • Prim
Slide 17: Carrizales Norte Prospect (50% W.I.)
Future Production Carrizales Norte Prospect (50% W.I.) Overview Carrizales Norte Potential Production (net to Arrow) • Carrizales Field (held by Frontera Energy): 1,600 • Discovered by C&C Energia in 2007 with the Carrizales-1 well – led to $500 million sale of C&C. • 24 wells drilled to date; as of
Slide 18: Colombian Oil Portfolio: MMV Basin
Colombian Oil Portfolio MMV Basin ARROW EXPLORATION CORP. (TSXV | AIM : AXL)
Slide 19: Oso Pardo Field (100% W.I.)
Current Production Oso Pardo Field (100% W.I.) Overview Oso Pardo Site Photos • Discovered in 2013 by Canacol; discovery well (Oso Pardo-1) had an IP of 200 bbls/d from stacked sands of the Umir formation • 2 appraisal wells drilled in 2014; 150 ft proven oil column to Lowest Known Oil (LKO) • Accor
Slide 20: Oso Pardo Extension (100% W.I.)
Future Opportunity Not Factored Into Production Forecast Oso Pardo Extension (100% W.I.) Overview Oso Pardo Extension Potential Production Profile* • Gaffney, Cline & Associates reserve study* snapshot: GCA Cases Oil EUR/well (Mbbl) Capex ($M) Pre-Tax NPV10% ($M) Low 343 $65.5 $24.9 Best 480 $122.7
Slide 21: Western Canada Gas: Montney
Western Canada Gas Montney ARROW EXPLORATION CORP. (TSXV | AIM : AXL)
Slide 22: Why Western Canada?
Why Western Canada? 1.8 2 Optionality 447 TCF marketable Tcf of Gas low-risk tie-in Efficient payout on Arrow’s on realizing value from Initially-in-Place wells adding Arrow’s gas in the total in Arrow’s combined 1,500 wells Montney play Montney lands boe/d IP assets Benefits Diversifies from Arrow’
Slide 23: Canadian Montney Assets
Current & Future Production Canadian Montney Assets Overview Canadian Potential Production (Fir + W. Pepper + E. Pepper) • Low-risk, low-cost, behind-pipe natural gas discovery; production in a rising gas 3-26 West Pepper well 1,000 IP (MMscf/d): 6.2 price environment in Alberta, Canada CF (Yr1)**:
Slide 24: Clear Path to Value Creation
Clear Path to Value Creation Drill up to Drill the 4-5 Rio high- New Resumed De- Reduced Completed Resumed Successful Cravo impact Pivot into Maximize mgmt. production leveraged Operating the sale of production financing Este wells Carrizales low-risk value of Oso Pardo Accretive team and from the t
Slide 25: Appendix
Appendix ARROW EXPLORATION CORP. (TSXV | AIM : AXL)
Slide 26: Management Achievements Since Taking Over in April 2020
Management Achievements Since Taking Over in April 2020 Management accepted below-market cash salaries to turn around the Company; non-executive compensation also Stabilized the Company limited. Terminated an onerous off-take contract at no cost Reduced excessive staff count in Colombia by nearly 70
Slide 27: West Pepper Well
West Pepper Well December 2021 Tie-In Stripping and Sweetening unit Pipeline installation grading Piping from Wellhead and Valve wellhead piping PAGE 26
Slide 28: Ombu Block (10% W.I.)
Non-Operated Production Ombu Block (10% W.I.) Overview • 10% working interest in the Ombu Block which contains the Capella discovery, the largest oil discovery in Colombia in the past 20+ years • Emerald Energy (Sinochem) is the operator • 2020 Year-End Arrow 2P reserves of 4.0 MMbbls of 8–11degree
Slide 29: Additional Colombian Assets
Additional Colombian Assets Overview Asset Net Acres Basin W.I. Status Operator 1. Los Picachos / Macaya 93,009 Caguan/ Putumayo 38% Force Majeure Hupecol 2. COR-39 95,111 Upper Magdalena 100% Suspended Arrow Location | Map PAGE 28
Slide 30: ESG In Action
ESG In Action Community Program: Aguachica (Communities of Loma de Corredor and La Ye Village) Water improvement Aqueduct improvement La Ye Village School Construction plate project work Church and parish Church and parish New fitness park Road maintenance maintenance maintenance Water tanks Water t
Slide 31: Corporate Information
1430, 333 – 11th Ave SW Calgary Alberta T2R 1L9 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: Deloitte LLP Legal Counsel: Gowling WLG (Canada) LLP ARROW EXPLORATION CORP.
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