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

<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

<ul>
<li>The Carrizales Norte-2 well (CN-2) encountered 60’ of net pay in the Ubaque formation. </li>
<li>The CN-2 well is currently producing 680 bbl/d gross (340 bbl/d net) as the company has set the ESP at the minimum optimum rate to maximize recovery factor.</li>
<li>The net pay encountered in the Ubaque at CN-2, the oil quality and the achieved flow rate are consistent with the Ubaque at CN-1.</li>
</ul>


The Carrizales Norte-2 well (CN-2) encountered 60’ of net pay in the Ubaque formation. 
The CN-2 well is currently producing 680 bbl/d gross (340 bbl/d net) as the company has set the ESP at the minimum optimum rate to maximize recovery factor.
The net pay encountered in the Ubaque at CN-2, the oil quality and the achieved flow rate are consistent with the Ubaque at CN-1.


Arrow Exploration Corp. (AIM: AXL): CN-2 Flows at up to 1 Mbbl/D.

<ul><li>The C7 formation (~26 feet of net oil pay) in the Carrizales Norte-1 well (CN-1) is now in production at a rate of 1 mbbl/d (550 bbl/d net to Arrow). </li><li>During the flow test, the sands flowed at a peak rate of 1,272 bbl/d.</li><li>The flow rate achieved at the C7 sands is addition to the rate from the deeper Ubaque formation (1,600 bbl/d gross, 800 bbl/d net).</li></ul>

The C7 formation (~26 feet of net oil pay) in the Carrizales Norte-1 well (CN-1) is now in production at a rate of 1 mbbl/d (550 bbl/d net to Arrow). During the flow test, the sands flowed at a peak rate of 1,272 bbl/d.The flow rate achieved at the C7 sands is addition to the rate from the deeper Ubaque formation (1,600 bbl/d gross, 800 bbl/d net).

Arrow Exploration Corp. -  CN-1 Well in Production at 1.1 Mbbl/D from the C7 Sands

<ul><li>The Gacheta zones proved unproductive at the CN-1 well location.</li><li>Management is investigating potential reasons for the lack of productivity and plans to re-evaluate these Gacheta zones in future wells.</li><li>The Gacheta zones were located above the Ubaque that flowed at rates &gt;1,100 bbl/d.</li></ul>

The Gacheta zones proved unproductive at the CN-1 well location.Management is investigating potential reasons for the lack of productivity and plans to re-evaluate these Gacheta zones in future wells.The Gacheta zones were located above the Ubaque that flowed at rates &gt;1,100 bbl/d.

Arrow Exploration Corp. (AIM: AXL): No Flow from the Gacheta

<ul><li>The Ubaque horizon at the Carrizales Norte-1 (CN-1) exploration well was put on three tests, the last of which tested at 1,134 bbl/d of 13.5 API oil on pump.</li><li>There is an opportunity to mix the heavy oil from the Ubaque with the C7 light to maximize pricing. </li><li>Pending further visibility on the discovered volumes in the Ubaque at Carrizales Norte, we re-iterate our target price of £0.50 per share (~our ReNAV).</li></ul>

The Ubaque horizon at the Carrizales Norte-1 (CN-1) exploration well was put on three tests, the last of which tested at 1,134 bbl/d of 13.5 API oil on pump.There is an opportunity to mix the heavy oil from the Ubaque with the C7 light to maximize pricing. Pending further visibility on the discovered volumes in the Ubaque at Carrizales Norte, we re-iterate our target price of £0.50 per share (~our ReNAV).

Arrow Exploration Corp. - Zone at Carrizales Norte with No Booked Reserves Has Flowed >1 Mbbl/D

Canada

Arrow Exploration is a Canadian junior oil and gas company focused on the acquisition, exploration, development, and production of crude oil and natural gas properties. The company operates in two segments: Colombia, its core area of operations, and Canada. Its primary assets are in Colombia's Llanos and Middle Magdalena Basins. The company was formed in 2018 and is headquartered in Calgary, Canada.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Arrow Exploration (AXL LN)

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

Arrow Exploration Corp. (AIM: AXL): CN-2 Flows at up to 1 Mbbl/D.

The CN-2 well is currently producing 680 bbl/d gross (340 bbl/d net) as the company has set the ESP at the minimum optimum rate to maximize...

Auctus Advisors

Arrow Exploration Corp. - CN-1 Well in Production at 1.1 Mbbl/D from the C7 Sands

The C7 formation (~26 feet of net oil pay) in the Carrizales Norte-1 well (CN-1) is now in production at a rate of 1 mbbl/d (550 bbl/d net to Arrow).

Auctus Advisors

Arrow Exploration Corp. (AIM: AXL): No Flow from the Gacheta

Management is investigating potential reasons for the lack of productivity and plans to re-evaluate these Gacheta zones in future wells.

Auctus Advisors

Arrow Exploration Corp. - Zone at Carrizales Norte with No Booked Reserves Has Flowed >1 Mbbl/D

The Ubaque horizon at the Carrizales Norte-1 (CN-1) exploration well was put on three tests, the last of which tested at 1,134 bbl/d of 13.5 API...

Auctus Advisors

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)