Arrow Exploration Corp. · TSXV:AXL
Arrow Exploration — Investor Presentation (January 2025)
46 slides from Arrow Exploration's investor presentation, January 2025
Slide 1: Corporate Presentation January 2025
ARROW EXPLORATION Growing & Socially-Responsible Colombia-Focused Energy Company AIM|TSXV : AXL January 2025 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 purpos e of engaging in an
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 Colombian boe/d Corporat e 2P Corpo rate reserv es – Year reserv es – YE basins End 2023(1) 202 3(1) Seasoned Committed to ESG Multiple Drill Ready Prospec
Slide 4: Corporate Snapshot
Corporate Snapshot 45% -10% Inst it utional 33.4% Share Ownership Market at December 31, 2024 Retail 19.6% Canacol Hig h Net Worth 18.5% 21.0% $128M USD $1.02 USD $19M USD 286M ($170M CAD) Askar Hig hAlshinbayev Net Wo rt h 16.81% 18.8% Market Cap 2023 2P N AV/Share (2P + Cash Dec 2024 Cash in Bank
Slide 5: 2025 Budget
2025 Budget1 Funded through cash balance and operations cash flow. No external funding sources required. 23 Wells being drilled in 2025 $50 million Capital Program Focus on Production Alberta Llanos Development Infrastructure • Continuation of CN fault • Pipeline from the pad CN to RCE pad • HZ well
Slide 6: 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 7: Attractive Fiscal Terms
Attractive Fiscal Terms1 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 1. Company analysis PAG E 6
Slide 8: Asset Overview
Asset Overview Current Asset Country Basin W.I. Production Operator Colombia (bo e/d, net ) Sedimentary Basins Middle Core Assets (1) Magdalena 1. Tapir Colombia Llanos 50% 4,700 Arrow(2) Valley 2 2. Oso Pardo Colombia MMV 100% 200 Arrow Bogota 1 LLanos 3. Ombu Colombia Putumayo 10% 0* Emerald * Exp
Slide 9: 2023 Year-End Reserves
2023 Year-End Reserves (1) 2024 Update available March 2025 Forecast Price Deck YE 2 023 $/bbl Year Brent (1) 202 4 78.00 17,800 $445MM 202 5 80.00 202 6 81.00 Year-End 202 7 82.50 202 8 84.50 202 9 85.50 203 0 87.21 203 1+ +2% per year 11,800 $280MM 5,290 $135MM 1P (Mboe) 2P (Mboe) 3P (Mboe) 1P (NP
Slide 10: Colombian Oil Portfolio: Llanos Basin
Colombian Oil Portfolio Llanos Basin ARROW EXPLORATION CORP . (TSXV | AIM : AXL)
Slide 11: 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 b oe /d • Frontera: 41,586 b oe /d • GeoPark: 35,465 b oe /d • Gran Tierra: 29,493b oe /d • Perenco:
Slide 12: 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 Alberta Ubaque Carbonera/Gacheta B South Tapir Carrizales Norte Proposed 3D Field Complex Seismic Program Macoya Este 3D Seismic Data Rio Cravo
Slide 13: 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 14: Tapir Block (50% W.I.) Current & Future Production
Current & Future Production Tapir Block (50% W.I.) (1) Overview 1. Rio Cravo Este (RCE) Vertical type well (2) • 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 mon
Slide 15: Alberta Discovery
Alberta Llanos Pad ALBERTA Discovery Construction of new cellars at CN Pad ARROW EXPLORATION CORP . (TSXV | AIM : AXL)
Slide 16: Alberta Llanos Discovery
Alberta* Llanos Discovery ▪ Typical Llanos Basin prospect: three-way structural closure against a fault ▪ Multiple zone discovery: C7, Guadalupe, Gacheta, & Ubaque ➔ 121 feet (Hydrocarbon bearing reservoir) ▪ Located approximately 3.5 km northeast of Carrizales Norte discovery on same fault trend *
Slide 17: Alberta Llanos Discovery HZ Development Plan
Alberta Llanos Discovery HZ Development Plan (CN+Alberta) Main Ubaque depth structure (Jan-2025 Post AB-2) ALBERTA-2 ALBERTA-2 ALBERTA-1 CN C Pad ALBERTA-3 ALBERTA-1 ALBERTA-3 surface TD Penetration pt CARRIZALES 500 M NORTE 500 M PAG E 16
Slide 18: C7 and Guadalupe depth structure maps
C7 and Guadalupe depth structure maps C7depth structure Guadalupe depth structure ALBERTA-2 ALBERTA-2 ALBERTA-1 ALBERTA-1 ALBERTA-3 surface ALBERTA-3 TD Penetration pt 500 M 500 M PAG E 17
Slide 19: Carrizales Norte Field
CN Pad Carrizales Norte Drilling Operations Carrizales Norte Field CNB Pad ARROW EXPLORATION CORP . (TSXV | AIM : AXL)
Slide 20: 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 drilled within the Main Ubaque reservoir. The well was brought on production on June 15, 2024 and initial production was over 3,000 bbl/d gross (1,500 net) oil ▪ Five addi
Slide 21: Carrizales Norte field: trap geometry
Carrizales Norte field: trap geometry Main Ubaque depth structure map Ubaque pinch-out edge A CN-5 B LEON A C1 INTRA C2 Carrizales Norte field C7 GUADALUPE Carrizales field GACHETA B TOP UBAQUE BASE UBAQUE 1 KM • Seismic sections show thickening of the Ubaque section towards North • The exact pinch-
Slide 22: 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 23: Cross Section Carrizales Norte Field
Cross Section Carrizales Norte Field B Stratigraphic Cross Section (Datum= top Ubaque) Shows Main Ubaque truncation to the southwest A A Line of section B C Paleozoic PAG E 22
Slide 24: Typical Horizontal Well Cross-section
Typical Horizontal Well Cross-section Phase 2 Horizontals PAG E 23
Slide 25: 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 PAG E 24
Slide 26: CNB HZ-4,5,6,7 Well AICD Technology
CNB HZ-4,5,6,7 Well AICD Technology PAG E 25
Slide 27: CN Ubaque Development Plan
CN Ubaque Development Plan 500 M PAG E 26
Slide 28: 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 29: 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 PAG E 28
Slide 30: Production Performance - RCE
PRODUCTION PERFORMANCE - RCE PAG E 29
Slide 31: 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 32: Mateguafa Attic prospect (Gacheta & Ubaque potential)
Mateguafa Attic prospect (Gacheta & Ubaque potential) Ubaque Depth structure Gacheta Depth structure • Robust structural closure observed at both Ubaque and Gacheta levels. • Isochron between top and bottom Ubaque picks suggest thick Ubaque section all across the structure (confirmed by results at M
Slide 33: 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 34: Regional Seismic Profile
Regional Seismic Profile NW SE PAG E 33
Slide 35: 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 36: Tapir Production Performance Indicators
TAPIR PRODUCTION PERFORMANCE INDICATORS Cumulative Oil Total Profit Days on Production @ Capital Recovery to Capital (NET) Production (NET) (NET) Dec 31, 2024 Date (%) RCE-2 2,419,112 276,345 15,997,583 975 661% RCE-3 2,221,897 98,437 5,698,525 672 256% RCE-4 2,221,779 140,914 8,157,498 655 367% RCE
Slide 37: Prospect Matrix – Tapir Block
Prospect Matrix – Tapir Block Large inventory of strong prospects seismic ready (unrisked) Based on indicative modelling assumptions by management. Actual IP rates and NPVs Will only be determined once Wells have been successfully Drilled and completed PAG E 36
Slide 38: Colombian Oil Portfolio: MMV Basin
Colombian Oil Portfolio MMV Basin ARROW EXPLORATION CORP . (TSXV | AIM : AXL)
Slide 39: 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 40: Oso Pardo Development Concept
Oso Pardo Development Concept PAG E 39
Slide 41: 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 42: Near Term Catalyst
Near Term Catalyst 2025 Plan Alberta* Llanos Mateguafa Oeste Capullo Mateguafa South 3D Se ismic RCE Development Development Exploration Exploration Attic Exploration CN North HZ Accretive M&A Development Colombia 2025 Fully attractive fiscal Financed – regime accelerated Underpinned By Near term pr
Slide 43: 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 44: Community & Stakeholder Engagement
Community & Stakeholder Engagement Prioritizes stakeholder collaboration and supporting local communities In 2023 spent +$500k Employed +1,600 on social and Spent + $3M with local Colombians over 5+ environmental companies years projects Water improvement Aqueduct improvement La Ye Village School Co
Slide 45: 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 46: 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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