Equity Capital Markets and Advisory Business, Auctus Advisors

Auctus Advisors

Equity Capital Markets and Advisory Business

Auctus Advisors is a specialist Equity Capital Markets and Advisory business with a focus in the Energy Sector. The partners have complementary skill sets, with decades of experience across Equity Capital Markets, Investment Banking and the Energy industry. We have worked at Société Générale, Canaccord Capital, BMO Capital Markets and Schlumberger. Most recently we have worked together for many years at GMP FirstEnergy. Auctus has been set up at the beginning of a new decade in which we see significant opportunities in the Energy space. Globally, demand for energy is at record levels and continues to grow. Conversely, investment in traditional energy sources has been severely constrained. We believe this imbalance creates opportunities for both companies and investors. Auctus provides Corporate Broking, Equity Research and Investment Banking services.

Equity Bottom-Up

Arrow Exploration Corp / Equity Bottom-Up

<ul><li>4Q22 production was 1,736 boe/d with cash of US$13 mm at YE22.</li><li>Production at the new wells on the Rio Cravo Este field continues to ramp-up slowly to prevent early water breakthrough.</li><li>At US$80/bbl for Brent from 2Q23 to YE24, we forecast YE23 net cash of US$16 mm increasing to US$53 mm at YE24 (~80% of the current market cap).</li></ul>

4Q22 production was 1,736 boe/d with cash of US$13 mm at YE22.Production at the new wells on the Rio Cravo Este field continues to ramp-up slowly to prevent early water breakthrough.At US$80/bbl for Brent from 2Q23 to YE24, we forecast YE23 net cash of US$16 mm increasing to US$53 mm at YE24 (~80% of the current market cap).

Arrow Exploration Corp. (AIM: AXL) - Good 4Q22 Results.

<ul><li>The RCE-5 well flowed 680 bbl/d (340 bbl/d net to Arrow) of oil over the last 24 hours. </li><li>The RCE-4 and RCE-3 wells are now producing respectively 944 bbl/d and 852 bbl/d (487 bbl/d and 426 bbl/d net).</li><li>At US$85/bbl for Brent from 2Q23 to YE24, we forecast YE23 net cash of US$19 mm increasing to US$55 mm at YE24 (85% of the current market cap).</li></ul>

The RCE-5 well flowed 680 bbl/d (340 bbl/d net to Arrow) of oil over the last 24 hours. The RCE-4 and RCE-3 wells are now producing respectively 944 bbl/d and 852 bbl/d (487 bbl/d and 426 bbl/d net).At US$85/bbl for Brent from 2Q23 to YE24, we forecast YE23 net cash of US$19 mm increasing to US$55 mm at YE24 (85% of the current market cap).

Arrow Exploration Corp. - Reaching 2,635 Bbl/D Without Capella. High Cash Position

<ul><li>The RCE-5 well encountered 90 feet of net oil pay across the Carbonera C7 (36 feet) and the Lower Gacheta sands (54 feet).</li><li>RCE-5 encountered the largest net pay in the current programme.</li><li>Carrizales Norte Carrizales Norte is a very high chance of success prospect (~75% but we assume 50% in our forecasts).</li></ul>

The RCE-5 well encountered 90 feet of net oil pay across the Carbonera C7 (36 feet) and the Lower Gacheta sands (54 feet).RCE-5 encountered the largest net pay in the current programme.Carrizales Norte Carrizales Norte is a very high chance of success prospect (~75% but we assume 50% in our forecasts).

Arrow Exploration Corp. -  The RCE-5 Well Encounters One of the Largest Net Pay to Date

<ul><li>Arrow’s 1P, 2P and 3P reserves were estimated at respectively 3.4 mmboe, 7.7 mmboe and 11.7 mmboe at YE22.</li><li>This includes mmboe 2P reserves and 4.3 mmboe 3P reserves at the company’s core assets in Colombia (Tapir and Oso Pardo).</li><li>Other reserves movements The YE22 2P and 3P reserves at Ombu (4.6 mmboe and mmboe respectively) are broadly unchanged compared with the estimates at the end of June.</li></ul>

Arrow’s 1P, 2P and 3P reserves were estimated at respectively 3.4 mmboe, 7.7 mmboe and 11.7 mmboe at YE22.This includes mmboe 2P reserves and 4.3 mmboe 3P reserves at the company’s core assets in Colombia (Tapir and Oso Pardo).Other reserves movements The YE22 2P and 3P reserves at Ombu (4.6 mmboe and mmboe respectively) are broadly unchanged compared with the estimates at the end of June.

Arrow Exploration Corp. (AIM: AXL) - Adding Reserves in Colombia

<ul><li>The RCE-4 well has been put in production.</li><li>This is a similar result as at RCE-3 (24 h flow rate of 968 bbl/d gross/484 bbl/d net).</li><li>Increasing production at RCE-3 Production has RCE-3 has increased from 650 bbl/d (325 bbl/d net) as per last week’s press release to 822 bbl/d (411 bbl/d).</li></ul>

The RCE-4 well has been put in production.This is a similar result as at RCE-3 (24 h flow rate of 968 bbl/d gross/484 bbl/d net).Increasing production at RCE-3 Production has RCE-3 has increased from 650 bbl/d (325 bbl/d net) as per last week’s press release to 822 bbl/d (411 bbl/d).

Arrow Exploration Corp. (AIM: AXL): Good flow rate at RCE-4

Canada

Arrow Exploration Corp. is a public junior oil and gas company. The Company focuses in the acquisition, exploration, and development of oil and gas properties in Colombia and in Western Canada.

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Arrow Exploration Corp (AXL LN)

Arrow Exploration Corp. (AIM: AXL) - Good 4Q22 Results.

4Q22 production was 1,736 boe/d with cash of US$13 mm at YE22. Production at the new wells on the Rio Cravo Este field continues to ramp-up slowly...

Auctus Advisors

Arrow Exploration Corp. - Reaching 2,635 Bbl/D Without Capella. High Cash Position

The RCE-5 well flowed 680 bbl/d (340 bbl/d net to Arrow) of oil over the last 24 hours. The RCE-4 and RCE-3 wells are now producing respectively...

Auctus Advisors

Arrow Exploration Corp. - The RCE-5 Well Encounters One of the Largest Net Pay to Date

The RCE-5 well encountered 90 feet of net oil pay across the Carbonera C7 (36 feet) and the Lower Gacheta sands (54 feet). RCE-5 encountered the...

Auctus Advisors

Arrow Exploration Corp. (AIM: AXL) - Adding Reserves in Colombia

Other reserves movements The YE22 2P and 3P reserves at Ombu (4.6 mmboe and mmboe respectively) are broadly unchanged compared with the estimates...

Auctus Advisors

Arrow Exploration Corp. (AIM: AXL): Good flow rate at RCE-4

The RCE-4 well has been put in production. This is a similar result as at RCE-3 (24 h flow rate of 968 bbl/d gross/484 bbl/d net).

Auctus Advisors

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