Slide 1: Growing & Socially-Responsible Colombia-Focused Energy Company
ARROW EXPLORATION Growing & Socially-Responsible Colombia-Focused Energy Company AIM|TSXV : AXL June 2023 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 2 opportunity rich Production Capacity 3,000+ 10 7.9 Mmboe 2P million Columbian Wells In 2023 reserves – Year basins boe/d End 2022 2P reserves – YE 2022 Seasoned Committed Compelling executive Pursuing to ESG valu
Slide 4: Corporate Snapshot
Corporate Snapshot RCE-4 on RCE-3 on production production East Pepper on RCS-1 on production production Completion of RCE-2 on AIM West Pepperproduction P listing/financing well on Operational e production update n Interim results c announcement e Institutional 33.4% Share Ownership Market at June
Slide 5: 2023 Budget Update
2023 Budget Update Funded through cash balance and operations cash flow. No external funding sources required. 10 well drilling program • 3 C7 wells at RCE, complete each adding 360bbls/d. • Material discovery at Carrizales Norte, multiple wells to follow. • 3 development wells at RCE, each expected
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 Executive Chair CEO & Director Senior NED (I)
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: ESG In Action
ESG In Action Community Program: Aguachica (Communities of Loma de Corredor and La Ye Village) In 2022, the Tapir operations have spent more than $3 million with local companies and over $450,000 on social and environmental projects. Water improvement Aqueduct improvement La Ye Village School Constr
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 Production Operator Asset Country Basin W.I. Capacity(3) Colombia Sedimentary Basins (boe/d, net) Middle Magdalena 1. Tapir Colombia Llanos 50%(1) 2,300 Arrow(2) Valley 2 Core Assets 2. Oso Pardo Colombia MMV 100% 130 Arrow Bogota 1 LLanos Arrow & 3. Alberta Canada WCSB 100% 3
Slide 12: 2022 Year-End Reserves
2022 Year-End Reserves 01-01-2023 Price Deck Year $/bbl Brent 2023 85.00 11,680 $205,196 2024 82.80 Reserve Replacement Ratio 2025 80.50 1P 165% 2026 82.00 2P 164% 2027 84.20 2028 85.88 2029 87.60 7,961 2030 89.35 $127,347 2031 91.14 2032 92.96 2032+ +2% per year $57,993 3,376 1P (Mboe) 2P (Mboe) 3P
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: Proximate Field Production
Tapir Block: Proximate Field Production 38.5 MMbbls Produced1 RUNNING ROOM Leads identified to date have the potential to be 2,000 – 3,000 bbls/d each Mateguafa Updip Mateguafa-4 Well Mateguafa-3 Well Mateguafa-1 Well Mateguafa-2A Well Mateguafa Oeste Capullo Corozos Sardinas 13.7 MMbbls Cum. Produc
Slide 16: 134 km2 Tapir 3D Seismic Complete
134 km2 Tapir 3D Seismic Complete PAGE 15
Slide 17: 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 1,000 bbls/d Multiple
Slide 18: Current & Future Production
Current & Future Production Tapir Block Potential Production (net to Arrow) Tapir Block (50% W.I.)* Type well IP forecast (per zone):360 bbls/d, net Overview Payback*: 3 months CF (Yr1)*: $8.8M, net Well cost: $2.0-$2.5M, net • RCE 2022 year-end 3P reserves of 4.724 MMbbls (gross) / 2.362 MMbbls (ne
Slide 19: Rio Cravo Este Development Concept
Rio Cravo Este Development Concept PAGE 18
Slide 20: Carrizales Norte Drilling Operations
Carrizales Norte Drilling Operations PAGE 19
Slide 21: Carrizales Norte Discovery
Future Production Carrizales Norte Discovery (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 8.4 MMbbls oil and had
Slide 22: Carrizales Norte-1: Pay Zones & Tests
Carrizales Norte-1: Pay Zones & Tests C7 Interval Gacheta – Ubaque Interval Gamma Ray Resistivity Neutron-Density Gamma Ray Resistivity Neutron-Density C7 Pay Zones C7 Completion • Perforated 9 feet • Final rate of 1,272 bbl/d 32o API oil at 12% water cut Gacheta C Pay Zone Gacheta C & D Gacheta D •
Slide 23: Carrizales Norte C7 Development Concept
Carrizales Norte C7 Development Concept PAGE 22
Slide 24: Carrizales Norte Ubaque Development Concept
Carrizales Norte Ubaque Development Concept PAGE 23
Slide 25: Carrizales Norte: Ubaque Structure
Carrizales Norte: Ubaque Structure PAGE 24
Slide 26: Carrizales Norte-1: Seismic Profile Post-Drill
Carrizales Norte-1: Seismic Profile Post-Drill Carrizales Fault: Provides updip seal Secondary Fault: Provides additional trapping potential Prospective reservoirs are now trapped between two sub-parallel faults PAGE 25
Slide 27: Tapir North 3D: Comparison to Vintage 2D Data
Tapir North 3D: Comparison to Vintage 2D Data 2D Line – 1980’s Vintage North Tapir 3D Data 3D Data: Significantly higher frequency content, less noise, improved spatial resolution The North Tapir 3D will help illuminate fault patterns and structural traps, as well as stratigraphic trapping opportuni
Slide 28: MMV Basin
Colombian Oil Portfolio MMV Basin ARROW EXPLORATION CORP. (TSXV | AIM : AXL)
Slide 29: Oso Pardo Field
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 30: Oso Pardo Extension
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 31: Oso Pardo Development Concept
Oso Pardo Development Concept PAGE 30
Slide 32: Near Time Catalyst
Near Time Catalyst Complete In Progress Future Drill 6 Rio Cravo Multiple Tapir South Oso Pardo Pivot into low-risk CN discovery well 3D on the Tapir Accretive M&A Este wells on Tapir development Seismic Project 3D Extension exploration drilling Block Block, Llanos Basin wells at CN Colombia Fully F
Slide 33: Appendix
Appendix ARROW EXPLORATION CORP. (TSXV | AIM : AXL)
Slide 34: RCE-5: Significant Pay Encountered
RCE-5: Significant Pay Encountered • The RCE-5 development well spud on March 19th and reached total depth on March 29th Forecast Net Pay API • The well encountered a total of 90 feet net oil pay Zone Production Rate (ft) Gravity within the Carbonera C7 and Gacheta formations (bbl/d) * • The Carbone
Slide 35: RCE-4: Record Drilling & Completion Operations
RCE-4: Record Drilling & Completion Operations • The RCE-4 development well spud on March 1st and was placed on production March 17th – the fastest time required to drill and complete a well in the RCE Forecast Net Pay API Zone Production Rate field to date (ft) Gravity (bbl/d) * • The well encounte
Slide 36: Continued Success with Rio Cravo Este-3
Continued Success with Rio Cravo Este-3 • The RCE-3 appraisal well spud on Feb 8th and was placed on production Feb 28th Forecast Net Pay API Zone Production Rate • The well encountered a total of 58 feet net oil within (ft) Gravity (bbl/d) * the Carbonera C7 and Gacheta formations Carbonera C7 15 2
Slide 37: Rio Cravo Este-2 Appraisal Success
Rio Cravo Este-2 Appraisal Success Adding Material Production and Reserves Forecast RCE-2 spud on April 2, on production May 23 Net Pay Test Rate API • Zone Production Rate (ft) (bbl/d) * Gravity • Well was drilled closer to fault and formation tops are (bbl/d) * 15 to 40 feet higher than RCE-1 Carb
Slide 38: Rio Cravo Sur-1 Appraisal Success
Rio Cravo Sur-1 Appraisal Success New Producing Zones Encountered Forecast RCS-1 spud on May 23 and on production as of June Net Pay Test Rate API • Zone Production Rate (ft) (bbl/d) * Gravity 29, 2022 (bbl/d) * • The well was drilled 1.3 km south of existing wells and Carbonera C7A 14 N/A N/A N/A h
Slide 39: Ombu Block
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 40: Corporate Information
550, 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: Ernst & Young Legal Counsel: Gowling WLG (Canada) LLP NOMAD: Canaccord Genuity