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>YE23 2P reserves were estimated at 11.8 mmboe, including 0.7 mmboe for Canada and 4.6 mmboe non-core, leaving 6.5 mmboe for the company’s core Colombian assets.</li>
<li>This compares with 2.1 mmbbl at YE23 plus 3.9 mmbbl for Carrizales Norte reported in September for a total of 6 mmbbl.</li>
<li>Adding back 0.6 mmbbl (net) produced at Tapir in 2023 suggests that Arrow has added 1.1 mmbbl at its core Colombian assets since the latest reserve reports (September 2023 for Carrizales Norte and YE23 for the other assets).</li>
</ul>


YE23 2P reserves were estimated at 11.8 mmboe, including 0.7 mmboe for Canada and 4.6 mmboe non-core, leaving 6.5 mmboe for the company’s core Colombian assets.
This compares with 2.1 mmbbl at YE23 plus 3.9 mmbbl for Carrizales Norte reported in September for a total of 6 mmbbl.
Adding back 0.6 mmbbl (net) produced at Tapir in 2023 suggests that Arrow has added 1.1 mmbbl at its core Colombian assets since the latest reserve reports (September 2023 for Carrizales Norte and YE23 for the other assets).


Arrow Exploration Corp. -  Reserves Additions.

<ul>
<li>The CN-5 well encountered 45 feet of Ubaque pay to base of sand with 25% porosity and 5 Darcy permeability.</li>
<li>The well targeted the Carrizales Noroeste prospect, west of the Carrizales Norte known pool boundary.</li>
<li>The boundary fault was not encountered in the Ubaque, which suggests that the Ubaque at Carrizales Norte and Carrizales Noroeste consists of a continuous larger pool that extends to the West.</li>
</ul>


The CN-5 well encountered 45 feet of Ubaque pay to base of sand with 25% porosity and 5 Darcy permeability.
The well targeted the Carrizales Noroeste prospect, west of the Carrizales Norte known pool boundary.
The boundary fault was not encountered in the Ubaque, which suggests that the Ubaque at Carrizales Norte and Carrizales Noroeste consists of a continuous larger pool that extends to the West.


Arrow Exploration Corp. (AIM: AXL): Successful Appraisal Drilling Expected to Boost Reserves

<ul>
<li>Canacol Energy has exercised 18.4 mm warrants. The company will now hold 60.1 mm shares in Arrow representing 21.2% of the issued share capital.</li>
<li>Tim Leslie has exercised 10.2 mm warrants, which more than doubles his interest from 7.6 mm shares to 17.8 mm shares.</li>
<li>This represents 6.3% of the issued share capital.</li>
</ul>


Canacol Energy has exercised 18.4 mm warrants. The company will now hold 60.1 mm shares in Arrow representing 21.2% of the issued share capital.
Tim Leslie has exercised 10.2 mm warrants, which more than doubles his interest from 7.6 mm shares to 17.8 mm shares.
This represents 6.3% of the issued share capital.


Arrow Exploration Corp. (AIM: AXL): Large Shareholders Increase Stake in Arrow

<ul>
<li>A 23 foot pay zone (25% porosity) in the Carbonera C7 formation in the CN-3 well has been perforated and put initially on production at a rate of 1,149 bbl/d on pump with a water cut of &lt;0.5%. </li>
<li>We view this low water cut as very encouraging. The oil is very light (33 deg API).</li>
<li>The ESP has now been shut off and the well is naturally flowing on a 23/128 choke at a rate of 640 bbl/d gross (320 bbl/d net).</li>
</ul>


A 23 foot pay zone (25% porosity) in the Carbonera C7 formation in the CN-3 well has been perforated and put initially on production at a rate of 1,149 bbl/d on pump with a water cut of &lt;0.5%. 
We view this low water cut as very encouraging. The oil is very light (33 deg API).
The ESP has now been shut off and the well is naturally flowing on a 23/128 choke at a rate of 640 bbl/d gross (320 bbl/d net).


Arrow Exploration Corp. (AIM: AXL): Good Flow Rate in the C7 at Carrizales Norte-3

<ul>
<li>The 2P reserves at Carrizales Norte (net to Arrow) have been estimated at 3.92 mmbbl with an 3P upside case of 6.62 mmbbl (1.82 mmbbl of 1P reserves).</li>
<li>The 2P reserves of Carrizales Norte are also 2x the pre drill estimate (1.8 mmbbl), which is in line with our estimate (4 mmbbl).</li>
<li>The Ubaque reservoir alone is estimated to hold ~3 mmbbl of 2P reserves (out of 3.92 mmbbl total 2P reserves at Carrizales Norte).</li>
</ul>


The 2P reserves at Carrizales Norte (net to Arrow) have been estimated at 3.92 mmbbl with an 3P upside case of 6.62 mmbbl (1.82 mmbbl of 1P reserves).
The 2P reserves of Carrizales Norte are also 2x the pre drill estimate (1.8 mmbbl), which is in line with our estimate (4 mmbbl).
The Ubaque reservoir alone is estimated to hold ~3 mmbbl of 2P reserves (out of 3.92 mmbbl total 2P reserves at Carrizales Norte).


Arrow Exploration Corp. (AIM: AXL): Tripling 2P reserves at Tapir

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. - Reserves Additions.

YE23 2P reserves were estimated at 11.8 mmboe, including 0.7 mmboe for Canada and 4.6 mmboe non-core, leaving 6.5 mmboe for the company’s core...

Auctus Advisors

Arrow Exploration Corp. (AIM: AXL): Successful Appraisal Drilling Expected to Boost Reserves

The boundary fault was not encountered in the Ubaque, which suggests that the Ubaque at Carrizales Norte and Carrizales Noroeste consists of a...

Auctus Advisors

Arrow Exploration Corp. (AIM: AXL): Large Shareholders Increase Stake in Arrow

Canacol Energy has exercised 18.4 mm warrants. The company will now hold 60.1 mm shares in Arrow representing 21.2% of the issued share capital.

Auctus Advisors

Arrow Exploration Corp. (AIM: AXL): Good Flow Rate in the C7 at Carrizales Norte-3

A 23 foot pay zone (25% porosity) in the Carbonera C7 formation in the CN-3 well has been perforated and put initially on production at a rate of...

Auctus Advisors

Arrow Exploration Corp. (AIM: AXL): Tripling 2P reserves at Tapir

The 2P reserves at Carrizales Norte (net to Arrow) have been estimated at 3.92 mmbbl with an 3P upside case of 6.62 mmbbl (1.82 mmbbl of 1P reserves).

Auctus Advisors

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