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 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

<ul><li>The Carrizales Norte-1 (CN-1) exploration well encountered a total of 148 feet of net oil pay measured depth (128 feet TVD) across three very high quality sands.</li><li>This is the largest net oil pay encountered by a well so far on Tapir (RCE-5: 90 feet, RCE-4: 45 feet, RCE-3: 58 feet, RCE-2 80 feet, RCS-1: 55 feet).</li><li>Because the reservoirs encountered at CN-1 are slightly deeper than at Rio Cravo, the pressure of the reservoirs is expected to be higher, resulting in high production rates.</li></ul>

The Carrizales Norte-1 (CN-1) exploration well encountered a total of 148 feet of net oil pay measured depth (128 feet TVD) across three very high quality sands.This is the largest net oil pay encountered by a well so far on Tapir (RCE-5: 90 feet, RCE-4: 45 feet, RCE-3: 58 feet, RCE-2 80 feet, RCS-1: 55 feet).Because the reservoirs encountered at CN-1 are slightly deeper than at Rio Cravo, the pressure of the reservoirs is expected to be higher, resulting in high production rates.

Arrow Exploration Corp - Exploration Success at Carrizales Norte

<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

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.

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Arrow Exploration (AXL LN)

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

Arrow Exploration Corp - Exploration Success at Carrizales Norte

The Carrizales Norte-1 (CN-1) exploration well encountered a total of 148 feet of net oil pay measured depth (128 feet TVD) across three very high...

Auctus Advisors

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

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