Arrow Exploration Corp. · TSXV:AXL
Arrow Exploration — Investor Presentation (September 2024)
41 slides from Arrow Exploration's investor presentation, September 2024
Slide 1: Arrow Exploration Corporate Presentation September 2024
ARROW EXPLORATION Growing & Socially-Responsible Colombia-Focused Energy Company AIM|TSXV : AXL September 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 $280 2 Production 5,000+ 11.8 Mmboe 2P million opportunity rich Columbian boe/d Corporate 2P Corporate reserves – Year reserves – YE basins End 2023 2023 Seasoned 13 Pursuing Committed Compelling executive accretive to
Slide 4: Corporate Snapshot
Corporate Snapshot 65% Institutional 33.4% Share Ownership Market at August 31, 2024 Retail Askar Alshinbayev 16.81% 19.6% Canacol Retail 19.6% 21.0% $128M USD $1.02 USD $12M USD 286M ($170M CAD) High Net Worth 18.8% Market Cap 2P NAV/Share Cash in Bank – August 1st Shares O/S (303M fully-diluted) M
Slide 5: Share Price vs Production
Share Price vs Production USD 6000 0.4500 5000 0 0.4000 5000 5000 0.3500 4000 0.3000 3600 0.2500 3000 0.2000 2730 2000 2518 0.1500 2335 2169 1736 1635 0.1000 1000 712 1503 575 1144 980 0.0500 0.0822 0.0921 0.1776 0.2072 0.2171 0.2434 0.2138 0.2763 0.2599 0.2401 0.2895 0.3421 0.4026 0 0.0000 Oct-21 D
Slide 6: Remainder 2024 Management Plans
Remainder 2024 Management Plans Funded through cash balance and operations cash flow. No external funding sources required. 3 Additional HZ wells (6 in total) • CN development focus • Low Risk Exploration at Mateguafa, Baquiano, Carrizales Norte Baquiano Exploration Well Infrastructure • Continuatio
Slide 7: Seasoned Leadership and Board of Directors
Seasoned Leadership and Board of Directors Collectively we have proven success Company Area Production Return to at Exit Shareholder Historical (boe/d) (CAGR) Success Cougar Hydrocarbons Canada 3,000 280% 15+ 190+ years (8X Proven O&G jurisdictions worked in Combined management Executers) Equatorial
Slide 8: 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 7
Slide 9: Asset Overview
Asset Overview Current Asset Country Basin W.I. Production Operator Colombia (boe/d, net) Sedimentary Basins Middle Magdalena Core Assets (1) Valley 2 1. Tapir Colombia Llanos 50% 4,700 Arrow(2) 2. Oso Pardo Colombia MMV 100% 200 Arrow Bogota 1 LLanos 3. Ombu Colombia Putumayo 10% 0* Emerald * Expec
Slide 10: 2023 Year-End Reserves
2023 Year-End Reserves Price Deck YE 2023 $/bbl Year Brent 2024 78.00 17,800 $445MM 2025 80.00 2026 81.00 Year-End 2027 82.50 2028 84.50 2029 85.50 2030 87.21 2031+ +2% per year 11,800 $280MM 5,290 $135MM 1P (Mboe) 2P (Mboe) 3P (Mboe) 1P (NPV10%) 2P (NPV10%) 3P (NPV10%) 2P NAV $1.02/share PAGE 9
Slide 11: Colombian Oil Portfolio: Llanos Basin
Colombian Oil Portfolio Llanos Basin ARROW EXPLORATION CORP. (TSXV | AIM : AXL)
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: 51,143 boe/d • Frontera: 41,586 boe/d • GeoPark: 35,465 boe/d • Gran Tierra: 29,493boe/d • Perenco: 21,000 b
Slide 13: Tapir Block: Prospects & Leads
Tapir Block: Prospects & Leads Prospect Objectives Multi-Zone Mateguafa Attic C7 Ardea Gacheta Mateguafa Oeste Carbonera B Lower Gacheta Capullo Carbonera C Baquiano Ubaque Carbonera/Gacheta B South Tapir Carrizales Norte Proposed 3D Field Complex Seismic Program Macoya Este 3D Seismic Data Rio Crav
Slide 14: New 3D Data Reveals North Tapir Prospectivity
New 3D Data Reveals North Tapir Prospectivity Prospect Objectives Mateguafa Attic Multi-Zone C7 Gacheta Mateguafa Oeste Lower Gacheta Capullo Ubaque Alberta Oil Fields Inferred Ubaque Main Depositional Edge Ubaque Play Fairway Carrizales Norte 2024 Exploration Well Field Complex 2025 Exploration Wel
Slide 15: Tapir Block (50% W.I.): 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):321 bbls/d, net • Additional drilling targets and recompletion opportunities • Water disposal well capable of 20,000 bwpd Payback*: less than 3 months, 3
Slide 16: Carrizales Norte Field
CN Pad Carrizales Norte Drilling Operations Carrizales Norte Field CNB Pad ARROW EXPLORATION CORP. (TSXV | AIM : AXL)
Slide 17: Carrizales Norte: Horizontal Well Program
Carrizales Norte: Horizontal Well Program ▪ The first horizontal well was spud on May 14th, 2024. A 622 m horizontal section was Ubaque Main Sand drilled within the Main Ubaque reservoir. The Structure Map well was brought on production on June 15, 2024 and is currently producing over 3,000 bbl/d gr
Slide 18: Carrizales Norte: C7 Potential
Carrizales Norte: C7 Potential ▪ Reservoirs consist of channelized sand bodies with excellent characteristics – Carrizales Norte porosity of 28 – 34% and multi-Darcy Conceptual C7 Existing Wells permeabilities Development Plan Current C7 ▪ Light oil (>30o API) and strong water Producers drive allow
Slide 19: Cross Section Carrizales Norte Field
Cross Section Carrizales Norte Field Stratigraphic Cross Section (Datum= top Ubaque) Shows Main Ubaque truncation to the southwest PAGE 18
Slide 20: Typical Horizontal Well Cross-section
Typical Horizontal Well Cross-section Phase 2 Horizontals PAGE 19
Slide 21: CNB HZ-1 Well Cross-section
CNB HZ-1 Well Cross-section CNB HZ-1 drilled 100% in Ubaque zone with advanced sensor technology heretofore unseen in Colombia PAGE 20
Slide 22: CNB HZ-1 Production
CNB HZ-1 Production PRODUCTION PROFILE WELL CNB-H1 4,000 1 0.9 3,500 0.8 WATER CUT (Fraction) 3,000 0.7 RATE, BPD 2,500 0.6 2,000 0.5 0.4 1,500 0.3 1,000 0.2 500 0.1 0 0 15-Jun-2024 16-Jul-2024 16-Aug-2024 16-Sep-2024 DATE Gross Rate (BFPD) Oil Rate (BOPD) Water Cut PAGE 21
Slide 23: HZ Well Simulation – CMG
HZ Well Simulation – CMG CNB HZ-1 is currently flowing at a restricted rate. Based on the simulation the well reservoir characteristics allow for higher production than the well is currently being produced at. There is no guarantee that simulation production rates of recoveries will be achieved. PAG
Slide 24: Additional Production Acceleration Case
Additional Production Acceleration Case – 1 6 Horizontal Injectors and 4 additional Hz Wells (SW – NE) Simulation Technology to Advance Decisions PAGE 23
Slide 25: Carrizales Norte Seismic Profile
Carrizales Norte Seismic Profile Carrizales Norte-5 Proves up additional Ubaque Reserves Horizontal Well Projection PAGE 24
Slide 26: Alberta Prospect
Alberta* 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 Alberta PAGE 25
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: 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 complete, with Mateguafa Oeste environmental studies to follow Capullo Inferred Ubaque Main
Slide 29: Regional Seismic Profile
Regional Seismic Profile NW SE PAGE 28
Slide 30: 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 31: 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 30
Slide 32: Matrix – Tapir Block
Prospect COST (NET) NPV10 (NET) BREAKEVEN IP Net Matrix – MM$ MM$ MONTHS BOPD CNB-HZ4 2.30 24.86 2 1,300 CNB-HZ5 2.30 20.99 2 1,107 Tapir CNB-HZ6 CNB-HZ7 2.30 2.30 13.55 7.59 3 7 687 422 Block CNB NORTH -HZ1 CNB NORTH -HZ2 2.30 2.30 2.30 19.48 17.31 15.31 2 3 3 802 722 642 Large inventory CNB NORTH
Slide 33: Colombian Oil Portfolio: MMV Basin
Colombian Oil Portfolio MMV Basin ARROW EXPLORATION CORP. (TSXV | AIM : AXL)
Slide 34: 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 35: Oso Pardo Development Concept
Oso Pardo Development Concept PAGE 34
Slide 36: 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 37: Near Time Catalyst
Near Time Catalyst 2025 Plan Baquiano* Mateguafa Oeste Capullo Mateguafa South 3D Seismic RCE Development Development Exploration Exploration CN North HZ Attic Exploration Accretive M&A Development Colombia 2025 Fully attractive fiscal Financed – regime accelerated Underpinned By Near term program 3
Slide 38: ESG Overview
ESG Overview We prioritize ESG initiatives to create value for stakeholders, enhance business resilience, and benefit our broader community. Our inaugural ESG Report outlines the following focal areas: Committed to developing and implementing sustainable strategies focused on land preservation, wild
Slide 39: Community & Stakeholder Engagement
Community & Stakeholder Engagement Prioritizes stakeholder collaboration and supporting local communities In 2023 spent +$500k on Employed +1,600 Spent + $3M with local social and Colombians over 5+ companies environmental projects years Aqueduct improvement La Ye Village School Construction plate W
Slide 40: Colombian Oil & Gas Industry
Colombian Oil & Gas Industry Key Takeaways Attractive Fiscal Favourable Terms Commodity Pricing •Favorable fiscal terms •Higher Brent oil prices, introduced in with a $2-$5/bbl 2003/2004 differential •Royalties at 8-14% Active Industry Great Infrastructure •Stable Colombian •Robust infrastructure Go
Slide 41: 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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