Q1 2026 Arrow Exploration Corp Earnings Call

May 28, 2026

Speaker #1: Good afternoon, ladies and gentlemen. Welcome to the Aero Exploration Q1 results investor presentation. Questions are encouraged; they can be submitted at any time via the Q&A tab that's just situated on the right-hand corner of your screen.

Jake: Good afternoon, ladies and gentlemen. Welcome to the Arrow Exploration Q1 results Investor Presentation. Questions are encouraged. They can be submitted at any time via the Q&A tab that's just situated on the right-hand corner of your screen. Please just simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today, and will publish those responses where it's appropriate to do so on the Investor Meet Company platform. Before we begin, we would just like to submit the following poll. If you could give that your kind attention, I'm sure the company would be most grateful. I'd now like to hand you over to CEO Marshall Abbott. Marshall, good afternoon, sir.

Operator: Good afternoon, ladies and gentlemen. Welcome to the Arrow Exploration Q1 results Investor Presentation. Questions are encouraged. They can be submitted at any time via the Q&A tab that's just situated on the right-hand corner of your screen. Please just simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today, and will publish those responses where it's appropriate to do so on the Investor Meet Company platform. Before we begin, we would just like to submit the following poll. If you could give that your kind attention, I'm sure the company would be most grateful. I'd now like to hand you over to CEO Marshall Abbott. Marshall, good afternoon, sir.

Speaker #1: Please just simply type in your questions, and press send. The company may not be in a position to answer every question it receives during the meeting itself; however, the company can review all questions submitted today and will publish those responses where it's appropriate to do so on the investor meet company platform.

Speaker #1: Before we begin, we would just like to submit the following poll, and if you could give that your kind attention, I'm sure the company would be most grateful.

Speaker #1: And I would now like to hand you over to CEO Marshall Abbott. Marshall, good afternoon, sir.

Speaker #2: Good afternoon. Thank you for hosting. looking forward to this exercise. So, we'll update on Q1 26 results. We'll talk about the overall program, where the company sits from a cash position, where we're headed on the drilling front, and even provide a snippet on acquisitions that we're looking at.

Marshall Abbott: Good afternoon. Thank you for hosting. Looking forward to this exercise. We'll update on Q1 2026 results. We'll talk about the overall program, where the company sits from a cash position, where we're headed on the drilling front, and even provide a snippet on acquisitions that we're looking at. We've got breadth and depth of talent that work on our behalf. Solid group of directors, all oil business fluent, and a great suite of executives who on average have 25 to 30 years of experience in the oil and gas game. We're really proud of the people that are supporting this deal and moving forward. This management team got active in 2020. We took over Arrow at that point in time. It was virtually bankrupt. Of course, it struggled through COVID and the economic threshold at the time.

Speaker #2: So, we've got breadth and depth of talent that, work on our behalf. Solid group of, of directors, all oil business fluent. And a great suite of executives who on average have 25 to 30 years of experience in the oil and gas game.

Speaker #2: So we're really proud of the people that, are supporting this deal and moving forward. So this management team got active in 2020. We took over, Aero at that point in time.

Speaker #2: It was virtually bankrupt and, of course, it struggled through COVID and, the economic threshold at the time. in 2021, we were successful in an AIM listing, that's $6.25P, and, of course, those shareholders are happy campers at the moment.

Marshall Abbott: In 2021, we were successful in an AIM listing at 6.25p. Of course, those shareholders are happy campers at the moment. We launched into a development program based on the discovery that we had at the RCE production platform. RCE has been a fantastic discovery. On balance in the whole Tapir block, which I'll talk about in a minute, we've got a 100 square mile block. We've drilled six exploration wells, and five of them have been successful. The play type and the morphology of that particular discovery, along with the other discoveries, has allowed us to drill another 40 wells. 2023, we shot a 100 square mile 3D seismic program on the West Tapir block. That resulted in a significant discovery at Carrizales Norte. 2024, our first horizontal well at Carrizales Norte.

Speaker #2: we then launched into a development program based on the discovery that we had at the RCE production platform. And, RCE is a fantastic discovery.

Speaker #2: on balance, in the whole Tapir block, which I'll talk about in a minute, we've got 100 square mile block. We've drilled six exploration wells.

Speaker #1: where the company sits from a cash position, where we're headed on the drilling front, and even provide a snippet on acquisitions that we're looking at.

Speaker #2: And five of them have been successful. So the play type and the morphology of that particular discovery along with the other discoveries is allowed us to drill another 40 wells.

Speaker #1: So we've got a breadth and depth of talent that, work on our behalf. Solid group of, of directors, all oil business fluent, and a great suite of executives who on average have 25 to 30 years of experience in the oil and gas game.

Speaker #2: In 2023, we shot a 100 square mile 3D sizing program on the West Tapir block. that resulted in a significant discovery at Carrizales, Norte.

Speaker #2: 2024, our first horizontal well at Carrizales, Norte. And just for background, my staff has experience in drilling 600 horizontal wells. not only in Canada but in US and in, Colombia.

Speaker #1: So we're really proud of the people that, are supporting this deal and moving forward. So this management team got active in 2020. We took over, Arrow at that point in time.

Marshall Abbott: Just for background, my staff has experience in drilling 600 horizontal wells, not only in Canada but in US and in Colombia. We also made another discovery up the same fault trend at the Alberta Llanos platform. We shot an additional 3D seismic program in 2025 on the Southeast Tapir Block. That has resulted in three exploration wells drilled, two of them successful. We've also implemented a significant water disposal infrastructure in all of our pads, and today we are disposing of 85,000 barrels a day of fresh water. Water is your friend in the Llanos Basin. It's a very significant and strong aquifer. That increases your recovery of original oil in place from 10% to 15% to upwards of 35% to 40%. We're hovering around 5,000 barrels of oil per day.

Speaker #2: we also made another discovery at the same fault trend at the Alberta Yanos platform. We then shot an additional 3D sizing program in 2025 on the southeast Tapir block.

Speaker #1: It was virtually bankrupt and, of course, it struggled through COVID and, the economic threshold at the time. in 2021, we were successful in an aim listing, that's $6.25P, and, of course, those shareholders are happy campers at the moment.

Speaker #2: that has resulted in three exploration wells drilled. two of them successful. we've also implemented a significant water disposal infrastructure in all of our pads.

Speaker #1: We then launched into a development program based on the discovery that we had at the RCE production platform. RCE has been a fantastic discovery, on balance, in the whole Tapir block, which we'll talk about in a minute.

Speaker #2: And today, we are disposing of 85,000 barrels a day of fresh water. Water is your friend in the Yanos basin. it's a very significant and strong aquifer.

Speaker #2: And that increases your recovery of original oil in place from 10 to 15 percent to upwards of 35 to 40 percent. We're hovering around 5,000 barrels of oil per day.

Speaker #1: We've got 100 square mile block. We've drilled six exploration wells, and five of them have been successful. So the play type and the morphology of that particular discovery along with the other discoveries is allowed us to drill another 40 wells.

Speaker #2: We've got just under 12 million barrels of 2P reserves at 2025. And that's at a significantly reduced price deck than, of course, what we're experiencing today.

Speaker #1: In 2023, we shot a 100 square mile 3D sizing program on the West Tapir block. that resulted in a significant discovery at Carrizales, Norte.

Marshall Abbott: We've got just under 12 million barrels of 2P reserves at 2025. That's at a significantly reduced price deck than, of course, what we're experiencing today. This action going on in the Middle East is great for the company. Sadly, it's not so great for humanity, but we're taking advantage of it as best we can. Market cap, just under $90 million as of 21 May 2028. We have no debt. Our cash balance as of 1 May is $24 million. Our netback on a per barrel basis is $42 a barrel. Both those numbers are increasing and we look forward to further disclosure on that. Net sales at a revenue of $23.5 million in Q1. This is just a quick map on the Colombian entity and the basins that we're active in. The Llanos Basin, of course, is where we're the most active.

Speaker #2: this action going on in the Middle East is, is great for the company, sadly. It's not so great for humanity, but we're taking advantage of it as best we can.

Speaker #1: In 2024, our first horizontal well at Carrizales, Norte. And just for background, my staff has experience in drilling 600 horizontal wells. not only in Canada but in US and in, Colombia.

Speaker #2: market cap just under 90 million US. As of May 21st, 2028. We have no debt. Our cash balance as of May 1st is $24 million US.

Speaker #2: Our net back on a per barrel basis is $42 a barrel. both those numbers are increasing and, we look forward to further disclosure on that.

Speaker #1: we also made another discovery up the same fault trend at the Alberta-Yanos platform. We then shot an additional 3D sizing program in 2025 on the southeast Tapir block.

Speaker #2: Net sales and revenue of $23.5 million in Q1. This is, just a quick map on the, Colombian entity. And the basins that we're active in, the Yanos basin, of course, is where we're the most active.

Speaker #1: that has resulted in three exploration wells drilled, two of them successful. we've also implemented a significant water disposal infrastructure in all of our pads, and today we are disposing of 85,000 barrels a day of fresh water.

Speaker #2: the middle Magdalena Valley is also where we have production. And we have a shut-in platform in the Putumayo just down outside of Cali. The bulk of our production comes from the Yanos.

Speaker #1: Water is your friend in the Yanos Basin, it's a very significant and strong aquifer. And that increases your recovery of original oil in place from 10 to 15 percent to upwards of 35 to 40 percent.

Marshall Abbott: The Middle Magdalena Valley is also where we have production. We have a shut-in platform in the Putumayo, just down outside of Cali. The bulk of our production comes from the Llanos. Accessibility is fantastic there. It is prairie for the most part. Very large fincas that are operated by high-net-worth individuals out of Bogotá, primarily. We've never had any shut-ins due to socialization issues, so we operate to a very high standard, to a Canadian standard in Llanos, and we've become quite good at it. We value ourselves as being the cheapest drillers and cheapest operators in Colombia overall, and I think that's witnessed by the results that we've had. Here's a quick snapshot of the block that we own. It's kind of shaped like a Canadian hockey stick, of course. Very appropriate. Five discoveries. The first was at RCE, Rio Cravo Este.

Speaker #2: accessibility is fantastic there. It is prairie for the most part. very large fincas that are operated by high-net-worth individuals out of Bogotá primarily. We've never had any shut-ins, due to socialization issues.

Speaker #1: We're hovering around 5,000 barrels of oil per day. We've got just under 12 million barrels of 2P reserves at 2025, and that's at a significantly reduced price deck than, of course, what we're experiencing today.

Speaker #2: So we operate to a very high standard to a Canadian standard in the Yanos. And we've become quite good at it. We value ourselves as being the cheapest drillers and cheapest operators in Colombia overall.

Speaker #1: This action going on in the Middle East is great for the company. Sadly, it's not so great for humanity, but we're taking advantage of it as best we can.

Speaker #2: And I think that's witnessed by the results that we've had. So here's a quick snapshot of the block that we own. It's kind of shaped like a Canadian hockey stick, of course, very appropriate.

Speaker #1: Market cap just under $90 million US as of May 21st, 2028. We have NODAT. Our cash balance as of May 1st is $24 million US.

Speaker #2: five discoveries. The first was that RCE Bravo SA. The second was a Carrizales, Norte. Then Alberta Yanos. Then Aguafa Attic. And most recently, we've had our discovery at Ticaco down at the south end.

Speaker #1: Our net back on a per barrel basis is $42 a barrel, both those numbers are increasing and, we look forward to further disclosure on that.

Speaker #1: Net sales and revenue of $23.5 million in Q1. This is, just a quick map on the, Colombian entity. And the basins that we're active in, the Yanos Basin, of course, is where we're the most active, the middle Magdalena Valley is also where we have production, and we have a shut-in platform in the Putumayo just down outside of Cali.

Speaker #2: We've got 3D coverage over the entire block now. So that is a huge advantage here. the play type is very similar, straightforward. the thin line that you see proceeding to the northeast are faults.

Marshall Abbott: Second was at Carrizales Norte, then Alberta Llanos, then Mateguafa Attic, and most recently we've had our discovery at Icaco down at the south end. We've got 3D coverage over the entire block now. That is a huge advantage here. The play type is very simple and straightforward. These thin lines that you see proceeding to the northeast are faults, and we look for structural compression against a fault to define an oil pool, and so far, we're five for six. It's an established play type. It's one, again, that you rely on the strength of the aquifer to really push that oil to surface. It's good oil. The netbacks we get are superior to what I think some of our competitors have, and we're very proud of the financial position we're in. We are the operator.

Speaker #2: And we look for structural compression against a fault to define an oil pool. And so far, we're five for six. So it's an established play type.

Speaker #1: The bulk of our production comes from the Yanos. accessibility is fantastic there. It is prairie for the most part, very large fincas that are operated by high net worth individuals out of Bogotá primarily.

Speaker #2: i-it's one, again, that you rely on the strength of the aquifer to really push that oil to surface. And it's good oil. the net backs we get are superior to what I think, some of our competitors have.

Speaker #1: We've never had any shut-ins due to socialization issues. So we operate to a very high standard to a Canadian standard in the Yanos. And we've become quite good at it.

Speaker #2: And we're very proud of the financial position we're in. So we are the operator. We have a 50% working interest in the block, $65,000 acres.

Speaker #2: And this block really sat idle for 20 years. So we are facing 10-year issues. And the block is set to expire in the first month of 2028.

Speaker #1: We value ourselves as being the cheapest drillers and cheapest operators in Colombia overall, and I think that's witnessed by the results that we've had.

Marshall Abbott: We have a 50% working interest in the block, 65,000 acres. This block really sat idle for 20 years. We are facing 10-year issues, and the block is set to expire in the first month of 2028. I can assure you that we are in constant negotiations and discussions with Ecopetrol, the national oil company who controls this block. I met with the Ecopetrol president last week. We have a very positive dialogue going forward. We're very confident that we're going to get an extension to this block. Just for background, Ecopetrol does almost 800,000 barrels a day. This is a very small piece of business for them. In aggregate, the block is producing 10,000 barrels a day with significant upside. From a 10-year perspective, we are dealing with all the regulatory entities in Colombia.

Speaker #2: I can assure you that we are in constant negotiations and discussions with Ecopatrol, the National Oil Company who controls this block. I met with the Ecopatrol president last week.

Speaker #1: So here's a quick snapshot of the block that we own. It's kind of shaped like a Canadian hockey stick, of course, very appropriate. five discoveries.

Speaker #1: The first was at RCE, Rio Cravoeste. The second was at Carrizales, Norte, then Alberta-Yanos. Then Madagascar-Atic, and most recently, we've had our discovery at Icaco down at the south end.

Speaker #2: We have a very positive dialogue dialogue going forward. We're very confident that we're going to get an extension to this block. And, just for background, Ecopatrol does almost 800,000 barrels a day.

Speaker #1: We've got 3D coverage over the entire block now. So that is a huge advantage here. the play type is very simple and straightforward. these thin lines that you see proceeding to the northeast are faults.

Speaker #2: This is a very small piece of business for them. So in aggregate, the block is producing 10,000 barrels a day with significant upside. So from a 10-year perspective, we are dealing with, all the regulatory entities in Colombia.

Speaker #1: And we look for structural compression against a fault to define an oil pool. And so far, we're five for six. So it's an established play type.

Speaker #2: And, again, we are proud of the way that we operate. And we operate to a Canadian standard. And that's well recognized. To date, those five discoveries of, of resulting in 39 wells drilled, five well pads, and 27 kilometers of roads built, cum production to date from 2020 is about 8 million barrels.

Speaker #1: i-it's one, again, that you rely on the strength of the aquifer to really push that oil to surface. And it's good oil, the net backs we get are superior to what I think, some of our competitors have.

Marshall Abbott: Again, we are proud of the way that we operate, and we operate to a Canadian standard, and that's well recognized. To date, those five discoveries have resulted in 39 wells drilled, five well pads, and 27 km of roads built. Cum production to date from 2020 is about 8 million barrels. We're in good shape. The gravity of that crude varies. Some of the thickest horizons are about 18 API. Very low viscosity. However, the oil comes out fast. Some of the crude we develop in the upper reaches is about 31, 32 API. Interestingly, over the last few months, we're getting the same price for our heavy as we are for our light. Here is just a quick snapshot of the Icaco discovery.

Speaker #1: And we're very proud of the financial position we're in. So we are the operator. We have a 50% working interest in the block, $65,000 acres.

Speaker #2: So we're in good shape. The, the gravity of that crude varies. Some of the thickest horizons are about 18 API, very low viscosity, however.

Speaker #1: And this block really sat idle for 20 years. So we are facing 10-year issues. And the block is set to expire in the first month of 2028.

Speaker #2: The oil comes out fast. And some of the crude we develop in the upper reaches is about 31, 32 API. Interestingly, over the last few months, we're getting the same price for our heavy as we are for our light.

Speaker #1: I can assure you that we're in constant negotiations and discussions with Ecopatrol, the National Oil Company who controls this block. I met with the Ecopatrol president last week.

Speaker #2: And here's just a quick, snapshot of the ACACO discovery. So just going back to place you in the map, we're at the south end of the block up against this fault.

Speaker #1: We have a very positive dialogue dialogue going forward. We're very confident that we're going to get an extension to this block. And, just for background, Ecopatrol does almost 800,000 barrels a day.

Speaker #2: Again, three-way closure against the fault is the secret. And we have depicted a fault coming through here on the map with another fault or, or orthogonal to that.

Marshall Abbott: Just going back to place you in the map, we're at the south end of the block up against this fault. Again, three-way closure against the fault is the secret. We have depicted a fault coming through here on the map with another fault orthogonal to that. We drilled the discovery well down here. Fantastic discovery. You can see on the seismic line the sort of relief we see at depth. We get closure up against the fault, and we drill very close to that fault to ensure that we're oil-filled. Here's a quick snapshot of some of the sensory tools that we run, the logs that we run. We've got hydrocarbon bearing at about 8,000 feet all the way down to 10,000 feet, three different zones. Right now, we're producing out of a single zone at Icaco.

Speaker #2: We drilled the discovery well down here. fantastic discovery. You can see on the seismic line, this sort of relief we see at depth. So we get closure up against the fault.

Speaker #1: Th-this is a very small piece of business for them. So in aggregate, the block is producing 10,000 barrels a day with significant upside. So from a 10-year perspective, we are dealing with, all the regulatory entities in Colombia.

Speaker #2: And we drill very close to that fault to ensure that we're oil-filled. And here's a quick snapshot of some of the sensory tools that we run.

Speaker #1: And, again, we are proud of the way that we operate, and we operate to a Canadian standard, and that's well recognized. To date, those five discoveries have resulted in 39 wells drilled, five well pads, and 27 kilometers of roads built. Cumulative production to date, from 2020, is about 8 million barrels.

Speaker #2: The logs that we run. So we've got hydrocarbon bearing at about 8,000 feet all the way down to 10,000 feet, three different zones. And right now, we're producing out of a single zone at ACACO.

Speaker #2: There are two other zones that we look to exploit. As this, discovery matures. We've just comp we've completed drilling our second well at ACACO 2, which is 2,000 meters to the northeast.

Speaker #1: So we're in good shape. The, the gravity of that crude varies. Some of the thickest horizons are about 18 API, very low viscosity, however.

Speaker #2: So it's, more than a step-out well. It's ba a baby exploration well, if you will. We call it a develicat in-house. So we're looking forward to the results of that.

Marshall Abbott: There are two other zones that we look to exploit as this discovery matures. We've just completed drilling our second well at Icaco-2, which is 2,000 meters to the northeast. It's more than a step-out well. It's a baby exploration well, if you will. We call it a developat in-house. We're looking forward to the results of that. In fact, that well should be down through the weekend, and we'll be talking about it next week. Mateguafa Attic is at the northern end of the block. Again, the same story. Here is the fault. This is the closing contour that is compressed high up against that fault. We've got excellent production coming out of Mateguafa. In fact, we drilled a horizontal well at Mateguafa, and it was the longest horizontal drilled to date in Colombia.

Speaker #1: The oil comes out fast. And some of the crude we develop in the upper reaches is about 31, 32 API. Interestingly, over the last few months, we're getting the same price for our heavy as we are for our light.

Speaker #2: In fact, that well should be down, through the weekend. And we'll be talking about it next week. Mataguafa Attic, which is at the northern end of the block.

Speaker #1: And here's just a quick snapshot of the Icaco discovery. So, just going back to place you on the map, we're at the south end of the block, up against this fault.

Speaker #2: Again, the same story. Here's the fault. This is the closing contour that is compressed high up against that fault. we've got excellent production coming out of Mataguafa.

Speaker #1: Again, three-way closure against the fault is the secret. And we have depicted a fault coming through here on the map with another fault or, or orthogonal to that.

Speaker #2: In fact, we drilled a horizontal well at Mataguafa. And, it was the longest horizontal drill to date in Colombia. And as a company, overall, last year, we were the 10th most active operator in Colombia.

Speaker #1: We drilled the discovery well down here. Fantastic discovery. You can see on the seismic line this sort of relief we see at depth. So we get closure up against the fault, and we drill very close to that fault to ensure that we're oil-filled.

Speaker #2: So we're well recognized. We're connected in the community. It's a very tight and, and intimate community, as I'm sure you can appreciate in Colombia.

Marshall Abbott: As a company overall, last year, we were the 10th most active operator in Colombia. We're well recognized. We're connected in the community. It's a very tight and intimate community, as I'm sure you can appreciate in Colombia. All the rumors are true, we find out. Notwithstanding that, we still have development potential ongoing at Mateguafa Attic, and we look forward to an aggressive develop program through the balance of the year. As I mentioned, other discoveries, the initial discovery at Rio Cravo Este, RCE, is what we call it in-house. This is a snapshot of the platform that we're drilling. Very busy platforms, drilling operations, production operations, very large camp. We've got upwards of 120 people on the pad at any given time. Carrizales Norte, very similar. A little easier terrain, not as forested. Mainly rice paddies and palm oil plantations.

Speaker #1: And here's a quick snapshot of some of the sensory tools that we run—the logs that we run. So, we've got hydrocarbon bearing at about 8,000 feet, all the way down to 10,000 feet, with three different zones.

Speaker #2: all the rumors are true. we find out. notwithstanding that, we still have development potential ongoing at Mataguafa Attic. And we look forward to an aggressive development program through the balance of the year.

Speaker #1: And right now, we're producing out of a single zone at Icaco, with two other zones that we look to exploit as this discovery matures.

Speaker #2: As I mentioned, other discoveries, the initial discovery at Rio Cravo Este, RCE, is what we call it in-house. Here's a snapshot of the platform that we're drilling.

Speaker #1: We've just completed drilling our second well at Icaco-2, which is 2,000 meters to the northeast. So it's more than a step-out well.

Speaker #2: So very busy platforms. Drilling operations, production operations, very large camp. We've got upwards of 120 people, on the pad at any given time. Carrizales Norte, very similar.

Speaker #1: It's a b a big exploration well, if you will. We call it a developed captain house. So we're looking forward to the results of that.

Speaker #1: In fact, that well should be down, through the weekend. We'll be talking about it next week. Madagascar-Atic is at the north end of the block.

Speaker #2: A little easier terrain, not as forested. mainly rice pad paddies and palm oil plantations. And then the Alberta Llanos field. So you can see, the construction and infrastructure we've had to put in place with roads, pads, on every one of these discoveries.

Speaker #1: Again, the same story here with the fault. This is a closing contour that is compressed high against that fault. we've got excellent production out of Madagascar.

Speaker #1: In fact, we drilled a horizontal well at Madagascar. It was the longest horizontal well to date in Colombia. And as a company overall, last year we were the 10th most active operator in Colombia.

Speaker #2: we value ourselves as being very positive with local communities. And we've employed employed over 6,000 Colombian nationals. since we've been pursuing this, drilling program from 2021.

Marshall Abbott: The Alberta Llanos field. You can see the construction and infrastructure we've had to put in place with roads, pads on every one of these discoveries. We value ourselves as being very positive with local communities, and we've employed over 6,000 Colombian nationals since we've been pursuing this drilling program from 2021. We've never had production delays due to socialization issues. We're proud of that. We take care of our guys in the field. Near-term catalysts. The play type that we pursue here is cookie cutter, if you will. There is scope and repeatability to it. We're looking for three-way closure up against a fault, and that has resulted in five very significant and material discoveries in the Llanos Basin. The Icaco exploration program is proving to be quite successful. We'll be talking about that more in detail next week.

Speaker #1: So we're well recognized. We're connected in the community. It's a very tight and, and intimate community, as I'm sure you can appreciate in Colombia.

Speaker #2: So we've never had production delays due to socialization issues. We're proud of that. We take care of our guys in the field. So near-term catalysts.

Speaker #1: All the rumors are true. We find out, and now we'll send you that. We still have development potential ongoing at Madagascar-Atic, and we look forward to an aggressive developer program through the balance of the year.

Speaker #2: So the plate type that we pursue here is cookie cutter, if you will. there is scope and repeatability to it. So we're looking for three-way closure up against a fault.

Speaker #1: As I mentioned, our discoveries, the initial discovery at Rio Cravoeste, RCE, is what we call it in-house. Here's a snapshot of the platform that we're drilling.

Speaker #2: And that has resulted in five very significant. Discoveries in the Llanos Basin. the ACACO exploration program is proving to be quite successful. We'll be talking about that more in detail next week.

Speaker #1: So very busy platforms, drilling operations, production operations. Very large camp. We've got upwards of 120 people on the pattern at any given time. Carrizales, Norte, very similar.

Speaker #2: We've got additional development going on at Carrizales Norte, as well as RCE, Rio Cravo Este. And significant water disposal available to us at the Alberta Llanos project.

Speaker #1: A little easier terrain, not as forested. mainly rice pad paddies and palm oil plantations. And then the Alberta-Yarros field. So you can see the construction and infrastructure we've had to put in place with roads, pads, on every one of these discoveries.

Speaker #2: We're one of the lowest-cost operators. our OPEX reduction projects are in line and, underway. And as I mentioned, we're putting away about 85,000 barrels of fresh water per day.

Marshall Abbott: We've got additional development going on at Carrizales Norte, as well as RCE, Rio Cravo Este, and significant water disposal available to us at the El Bardo Llanos project. We're one of the lowest cost operators. Our OPEX reduction projects are in line and underway, as I mentioned, we're putting away about 85,000 barrels of fresh water per day. Over the last 12 months, we've been very active on the M&A front in looking at potential opportunities, where what we're seeing onshore Colombia is significant deal flow compared to what it was about a year ago. In fact, we've looked at probably 60 different opportunities within the last 12 months. Again, we've had five major discoveries to date. RCE, El Bardo Llanos, Mateguafa Attic, Carrizales Norte, and Icaco. We're fully financed. Our cash flow is very strong on a monthly basis.

Speaker #2: and over the last 12 months, we've been very active on the M&A front and looking at potential opportunities. We're what we're seeing onshore Colombia, is, there's significant deal flow compared ago.

Speaker #2: And in fact, we've looked at probably 60 different opportunities. within the last 12 months. So again, we've had five major discoveries to date. RCE, Alberta Llanos, Mataguafa Attic, Carrizales Norte, ACACO.

Speaker #2: We're fully financed. Our cash flow is very strong on a monthly basis. Our cash flow is certainly outstripping our CAPEX. We have a strong balance sheet.

Speaker #2: We'll keep it that way. no debt. And we have access to a $20 million prepay that has been offered to us by BP. BP buys all of our crude at the wellhead.

Marshall Abbott: Our cash flow is certainly outstripping our CapEx. We have a strong balance sheet. We'll keep it that way. No debt. We have access to a $20 million prepaid that has been offered to us by BP. BP buys all of our crude at the wellhead. As soon as there is delivery at the wellhead, the risk becomes BP's. Again, we're well-defended against any kind of shut-ins or transportation risk. Very experienced team. We're proud of the team. We're cohesive. We've got the experience, and we're active. We've got 40 people in Bogota, 11 professionals in Calgary. Again, multiple years of experience on both jurisdictions. That's our little company. We're looking forward to aggressive growth through the balance of the year.

Speaker #2: So as soon as there's delivery at the wellhead, the risk becomes BP's. So again, we're well defended against any kind of shut-ins or transportation risk.

Speaker #2: very experienced team. We're proud of the team. We're cohesive. We've got the experience. And we're active. We've got 40 people in Bogotá, 11 professionals in Calgary.

Speaker #2: And again, multiple years of experience in on both jurisdictions. So that's our little company. We're looking forward to aggressive growth through the balance of the year.

Speaker #2: we're drilling multiple exploration targets. And of course, we're going to stick, as aggressive as we possibly can on the exploration side and on the development side.

Speaker #2: We've got the infrastructure in place. the biggest issue that we're facing, of course, is the 10-year on the on the Tapir block. there are certainly precedent throughout the basin that, these extensions are granted.

Marshall Abbott: We're drilling multiple exploration targets, and of course, we're going to stick as aggressive as we possibly can on the exploration side and on the development side. We've got the infrastructure in place. The biggest issue that we're facing, of course, is the tenure on the Tapir Block. There's certainly precedent throughout the basin that these extensions are granted. We've had very positive feedback from Ecopetrol. Ecopetrol themselves have actually initiated a program where they're putting 18 of their operated blocks up for grabs. Certainly we're looking at that. I think that's a good indication of where we're going on the tenure of the asset. We see that as being a suppression on the share price. Ultimately, when we get this extension, it's going to be well recognized in share price. Thank you for your time today. More than happy to take any questions.

Speaker #2: we've had very po-positive feedback from Eco Patrol. Eco Patrol themselves have actually initiated a program where they're putting 18 of their operator blocks up for grabs.

Speaker #2: And certainly, we're looking at that. So I think that's a good indication of where we're going on the 10-year of the asset. We see that as being the suppression on the share price.

Speaker #2: And ultimately, when we get this extension, it's going to be well recognized in share price. So thank you for your time today. And more than happy to take any questions.

Speaker #1: Perfect. Marshall, if I may just, jump back in there. And thank you very much, indeed, for your presentation this afternoon. Ladies and gentlemen, please do continue to submit your questions just by using the Q&A tab that's situated on the right-hand corner of your screen.

Speaker #1: just while the company takes a few moments to review those questions that have been submitted already, I'd just like to remind you that a recording of this presentation, along with a copy of the slides and the published Q&A, can all be accessed via your investor dashboards.

Jake: Perfect, Marshall, if I may just jump back in there. Thank you very much indeed for your presentation this afternoon. Ladies and gentlemen, please do continue to submit your questions just by using the Q&A tab that's situated on the right-hand corner of your screen. Just while the company take a few moments to review those questions that have been submitted already, just like to remind you that a recording of this presentation, along with a copy of the slides and the published Q&A, can all be accessed via your investor dashboards. Marshall, as you can see, we have received a number of questions. Thank you to all of those on the call for taking the time to submit their questions.

Operator: Perfect, Marshall, if I may just jump back in there. Thank you very much indeed for your presentation this afternoon. Ladies and gentlemen, please do continue to submit your questions just by using the Q&A tab that's situated on the right-hand corner of your screen. Just while the company take a few moments to review those questions that have been submitted already, just like to remind you that a recording of this presentation, along with a copy of the slides and the published Q&A, can all be accessed via your investor dashboards. Marshall, as you can see, we have received a number of questions. Thank you to all of those on the call for taking the time to submit their questions.

Speaker #1: Marshall, as you can see, we have received a number of questions. and thank you to all of those on the call for taking the time to submit their questions.

Speaker #1: but Becky, at this stage, if I may hand over to you to chair the Q&A, and if I pick up from you at the end, that'd be great.

Speaker #1: Thank you.

Speaker #3: Thank you very much, Jake. so we will start with the pre-submitted questions that we received. firstly, we had multiple questions on the status of the Tapir block extension.

Jake: Becky, at this stage, if I may hand over to you to chair the Q&A, and if I pick up from you at the end, that'd be great. Thank you.

Operator: Becky, at this stage, if I may hand over to you to chair the Q&A, and if I pick up from you at the end, that'd be great. Thank you.

Speaker #3: I know you've spoken to it, Marshall, but just anything else you want, wanted to add, any update on discussions and progress there, as we did have a lot of questions on that.

Becky: Thank you very much, Jake. We will start with the pre-submitted questions that we received. Firstly, we had multiple questions on the status of the Tapir Block extension. I know you've spoken to it, Marshall, just anything else you wanted to add, any update on discussions and progress there, as we did have a lot of questions on that.

[Company Representative] (Arrow Exploration): Thank you very much, Jake. We will start with the pre-submitted questions that we received. Firstly, we had multiple questions on the status of the Tapir Block extension. I know you've spoken to it, Marshall, just anything else you wanted to add, any update on discussions and progress there, as we did have a lot of questions on that.

Speaker #2: So, a-as mentioned, we've had an ongoing dialogue with Eco Patrol, along with our partners, Patrolco. we're 50/50, in the Tapir block. And we operate, as you know, the discussions we've had with Eco Patrol have been very positive.

Marshall Abbott: As mentioned, we've had an ongoing dialogue with Ecopetrol, along with our partners, Petrolco. We're 50/50 in the Tapir Block, and we operate, as you know. The discussions we've had with Ecopetrol have been very positive. I think they are a little surprised at the success we've had in the basin. It's been well recognized, the relationship we have with all the decision-makers at Ecopetrol has been very positive. As I said, I met with the President last week in Bogotá, and they're on a regular, consistent basis. We've also had a number of discussions with the managers and the vice presidents within the organization, and that's been very positive. We've had very excellent feedback on the submissions we've made. They're very formal submissions, 20 to 25 pages. We've got a significant work commitment that we would stick to once the block is extended to us.

Speaker #2: I think they are a little surprised at the success we've had in the basin. And, it's been well recognized. The, relationship we have with all the decision-makers at Eco Patrol has been very pro-positive.

Speaker #2: As I said, I met with the president last week, in Bogotá. I'm there on a regular, consistent basis. we've also had a number of discussions with the managers and the vice presidents within the organization.

Speaker #2: And that's been very positive. So we've had very excellent feedback on the submissions we've made. They're very formal submissions. you know, 20 to 25 pages.

Speaker #2: we've got a significant working, work commitment that, would, stick to once the, the, the block is, extended to us. And, from the perspective of additional opportunity, there are still a lot of work to be done in the Llanos basin on the Tapir block.

Speaker #2: We, we see quite a bit of geological structure that's quite favorable. And that's been recognized. And as I mentioned, earlier in the presentation, there is precedent for these extensions being granted.

Marshall Abbott: From the perspective of additional opportunity, there is still a lot of work to be done in the Llanos Basin on the Tapir Block. We see quite a bit of geological structure that's quite favorable, and that's been recognized. As I mentioned earlier in the presentation, there is precedent for these extensions being granted. We're looking forward to providing very positive news in the near future here.

Speaker #2: So, we're, we're lo-looking forward to providing very positive news in the near future.

Speaker #3: Thank you. And we also had a number of questions on ACACO. so is well, summarizing a few, is ACACO on the same trend as the other producing fields, is ACACO on the sa-same carbon era C7, C9 play as Mataguafa, or is it a distinct geological target?

Becky: Thank you. We also had a number of questions on Icaco. Well, summarizing a few, is Icaco on the same trend as the other producing fields? Is Icaco on the same Carbonera C7, C9 play as Mateguafa, or is it a distinct geological target?

[Company Representative] (Arrow Exploration): Thank you. We also had a number of questions on Icaco. Well, summarizing a few, is Icaco on the same trend as the other producing fields? Is Icaco on the same Carbonera C7, C9 play as Mateguafa, or is it a distinct geological target?

Speaker #2: very good question. So, it's at the south end of the block. But, there are six separate fault trends on the block that are oriented southwest-northeast.

Speaker #2: And so we intersect six on the size of the block. they've all pursued the same play type, where we have three, three-way closure up against a fault.

Marshall Abbott: Very good question. It's at the south end of the block, but there are six separate fault trends on the block that are oriented southwest-northeast. We intersect six on the size of the block. They've all pursued the same play type, where we have three-way closure up against a fault, and we have the same horizons that are hydrocarbon-bearing in each one of the discoveries we've had. We've got C7 Carbonera at the top of the stack at about 8,000 foot depth. We can then have a Guadalupe or Carbonera C7 further down, and then we get down into the Gacheta, and the thickest member is being the Ubaque. In the well that we drilled and press released in the last 10 days or so, we had all three zones, hydrocarbon-bearing on logs.

Speaker #2: And we have the same horizons that are hydrocarbon-bearing in each one of the discoveries we've had. So we've got C7 carbon era at the top of the stack at about 8,000-foot depth.

Speaker #2: we can then have a Guadalupe or carbon era 7, further down. And then we get down into the Gachetá, and the thickest member is being the Ubaki.

Speaker #2: So in the well that we, drilled and press-released, in the last 10 days or so, we had all three zones hydrocarbon-bearing on logs were producing one of the zones, the C7 at the top of the stack.

Speaker #2: And we're looking forward to, actually completing one of the other zones, the Ubaki, being the thickest. over the next couple of weeks. So the, the rig moved to ACACO 2.

Marshall Abbott: We're producing one of the zones, the C7, at the top of the stack. We're looking forward to actually completing one of the other zones, the Ubaque being the thickest, over the next couple of weeks. The rig moved to Icaco-2. We have reached total depth on that well. We're actually setting casing within the next 24 hours, and we'll have additional news on the results of that well next week. Again, looking back at Icaco-1 with the hydrocarbon-bearing zones that we see, we're very excited. This is a prospect that we've been excited about since seeing it on the 3D seismic. It's got all the ingredients, and it's got the faults exactly where we want them to be. We've got the control of the drilling rig to get these wells down on a deviated sense.

Speaker #2: we have reached total depth on that well. We're actually setting casing, within the next 24 hours. And we'll have additional news on the results of that well next week.

Marshall Abbott: We're looking forward to actually completing one of the other zones, the Ubaque being the thickest, over the next couple of weeks. The rig moved to Icaco-2. We have reached total depth on that well. We're actually setting casing within the next 24 hours, and we'll have additional news on the results of that well next week. Again, looking back at Icaco-1 with the hydrocarbon-bearing zones that we see, we're very excited. This is a prospect that we've been excited about since seeing it on the 3D seismic. It's got all the ingredients, and it's got the faults exactly where we want them to be. We've got the control of the drilling rig to get these wells down on a deviated sense.

Speaker #2: But again, looking back at ACACO 1 with the hydrocarbon-bearing zones that we see, we're very excited. this is a prospect that we've been excited about since seeing it on the 3D seismic.

Speaker #1: Very good question. So it's at the south end of the block, but there are six separate fault trends on the block that are oriented southwest-northeast.

[Company Representative] (Arrow Exploration): where the company sits from a cash position, where we're headed on the drilling front, and even provide a snippet on acquisitions that we're looking at. We've got breadth and depth of talent that work on our behalf. Solid group of directors, all oil business fluent, and a great suite of executives who on average have 25 to 30 years of experience in the oil and gas game. We're really proud of the people that are supporting this deal and moving forward. This management team got active in 2020. We took over Arrow at that point in time. It was virtually bankrupt, and of course, it struggled through COVID and the economic threshold at the time. In 2021, we were successful in an AIM listing at 6.25p. Of course, those shareholders are happy campers at the moment.

Speaker #1: Two of the three were hydrocarbon variants. The third one had oil over water. Of course, we didn't perforate that. But right now, one of the other two zones is producing a significant amount of water.

Speaker #1: And so we intersect six on the size of the block. They've all pursued the same plate type, where we have three-way closure up Okay.

Speaker #2: So, it's got all the ingredients. And, it's got the faults exactly where we want them to be. And we've got the control, of the drilling rig to get these wells down on a deviated sense, ACACO 2 is at a 71-degree angle.

Speaker #1: So, we're going to move in a service rig with a bridge plug, and we're going to plug off the lowest zone just to see if that increases the oil cut and decreases the water cut.

Speaker #2: Which is tricky sometimes, but the experience that we've got on the ground, the Tapir block is proven to be, very successful moving forward. And the news is so good, there's a fire truck outside my window.

Speaker #1: Very straightforward procedure. that service rig should be in place within the next 15 days. And it's a five-day operation to, pull all the pump and tubing out of the hole and go back in with the bridge plug and isolate the zone of interest and get it back on production.

And we have the same horizon that is hydrocarbon-bearing in each one of the discoveries we've had. So we've got the C7 Carbonera at the top of the stack at about 8,000 feet depth.

uh, we can then have

a Guadalupe or carbonara 7.

Marshall Abbott: Icaco-2 is at a 71-degree angle, which is tricky sometimes, but the experience that we've got on the ground with the Para-Bac is proving to be very successful moving forward. The news is so good. There's a fire truck outside my window.

Speaker #3: In the background, right? is ACACO 2 successful? What will the drilling plans be? Will you go straight to horizontals?

Further down, and then we get down into the Gacheta, and the thickest member is being the Lower Gacheta.

Speaker #1: So it's a very straightforward procedure. we would be on that today, but, you typically need 30 days of socialization before you can move heavy equipment in.

Speaker #2: it's a very good question. I think, if I'm to answer it in detail, I would get in trouble with our nomad. But. with what we've seen so far on ACACO 2, we're very positive.

Speaker #1: And of course, we're doing that. Excuse me.

Becky: A bit of background noise. If Icaco-2 is successful, what will the drilling plans be? Will you go straight to horizontals?

[Company Representative] (Arrow Exploration): A bit of background noise. If Icaco-2 is successful, what will the drilling plans be? Will you go straight to horizontals?

So in the well that we drilled and press released in the last 10 days. Or so, we had all 3 zones, hydrocarbon bearing on logs were producing 1 of the zones, the C7 at the top of the stack. And we're looking forward to, uh, actually

Speaker #2: Moving on to plans and priorities for the company going forward. We've had a question on, if the Tapir extension is granted, what is your capital allocation priority?

[Company Representative] (Arrow Exploration): We launched into a development program based on the discovery that we had at the RCE production platform. RCE has been a fantastic discovery. On balance in the whole Tapir Block, which we'll talk about in a minute, we've got a 100 square mile block. We've drilled six exploration wells, and five of them have been successful. The play type and the morphology of that particular discovery, along with the other discoveries, has allowed us to drill another 40 wells. 2023, we shot a 100 square mile 3D seismic program on the West Tapir block. That resulted in a significant discovery at Carrizales Norte. 2024, our first horizontal well at Carrizales Norte. Just for background, my staff has experience in drilling 600 horizontal wells, not only in Canada, but in US and in Colombia.

Marshall Abbott: That's a very good question. I think if I'm to answer it in detail, I would get in trouble with our Nomad.

Marshall Abbott: That's a very good question. I think if I'm to answer it in detail, I would get in trouble with our Nomad. With what we've seen so far on Icaco-2, we're very positive. I better not stretch beyond that.

Completing 1 of the other zones that yabaki would be in the thickest uh, over the next couple of weeks.

Speaker #2: I better not stretch beyond that.

Speaker #3: Thank you. and a few questions.

Speaker #2: And the discovery, as we know, and we look forward to releasing the results of the development program.

Marshall Abbott: With what we've seen so far on Icaco-2, we're very positive. I better not stretch beyond that.

So, the rig moved to Ikako-2. We have reached total depth on that well. We're actually setting casing within the next 24 hours, and we'll have additional news on the results of that well next week.

Speaker #3: Thanks, Marshall. A few questions on water. Do you have enough water disposal capacity at ACACO? And, the Octus note on, ACACO 1 suggests that the rig will return to this discovery well to shut off water ingress from one particular perforated zone.

Becky: Thank you.

[Company Representative] (Arrow Exploration): Thank you.

But again, uh, looking back at the C-1 with the hydrocarbon-bearing zones that we see, uh, we're very excited.

Marshall Abbott: It's discovery as we know, and we look forward to releasing the results of the development program.

uh, this is

Becky: Thanks, Marshall. A few questions on water. Do you have enough water disposal capacity at Icaco? The Orca note on Icaco-1 suggests that the rig will return to this discovery well to shut off water ingress from one particular perforated zone. How do you do this, and how will you control excess water ingress in the Icaco wells going forward?

[Company Representative] (Arrow Exploration): Thanks, Marshall. A few questions on water. Do you have enough water disposal capacity at Icaco? The Orca note on Icaco-1 suggests that the rig will return to this discovery well to shut off water ingress from one particular perforated zone. How do you do this, and how will you control excess water ingress in the Icaco wells going forward?

a prospect that we've been excited about since seeing it on the 3D seismic. So it's got all the ingredients.

Speaker #3: How do you do this, and how will you control excess water ingress in the ACACO wells going forward?

and uh,

Speaker #2: Okay. Good question. So, today, overall on the block, we're disposing of 85,000 barrels a day. We have capacity of 110,000 barrels a day. And when we get around to drilling a disposal well at ACACO, we'll be ab-able to expand that another 30,000 barrels a day.

It's got the faults exactly where we want them to be, and we've got the control of the drilling rig to get these wells down on the deviated sense. Ikako-2 was at a 71-degree angle.

which is tricky sometimes but the experience that we've got on the ground,

Marshall Abbott: Okay, good question. Today, overall on the block, we're disposing of 85,000 barrels a day. We have capacity of 110,000 barrels a day. When we get around to drilling a disposal well at Icaco, we'll be able to expand that another 30,000 barrels a day. When we drill at Icaco at the C7, which we tested first, that's the lightest oil, and typically we've had our most success outside of the Ubaque on the C7. There were three zones at the top of the stack in the C7. Two of the three were hydrocarbon-bearing. The third one had oil over water. Of course, we didn't perforate that. Right now, one of the other two zones is producing a significant amount of water.

[Company Representative] (Arrow Exploration): We also made another discovery up the same fault trend at the Alberta Llanos. We then shot an additional 3D seismic program in 2025 on the Southeast Tapir block. That has resulted in 3 exploration wells drilled, 2 of them successful. We've also implemented a significant water disposal infrastructure in all of our pads. Today we are disposing of 85,000 barrels a day of fresh water. Water is your friend in the Llanos Basin. It's a very significant and strong aquifer. That increases your recovery of original oil in place from 10% to 15% to upwards of 35% to 40%. We're hovering around 5,000 barrels of oil per day. We've got just under 12 million barrels of 2P reserves at 2025. That's at a significantly reduced price back then of course what we're experiencing today.

Um, I went to Beer Block. It has proven to be, uh, very successful moving forward.

Speaker #2: So when we drill ACACO in the C7, which we tested first, that's the lightest oil and typically, we've had our most success, o-outside of the Ubaki, on the C7.

We use... This is so good. There's a fire truck outside.

Speaker #2: There were three zones at the top of the stack in the C7. Two of the three were hydrocarbon-bearing. The third one had oil over water.

Um, if a taco 2 is successful, what will the drilling plans be? Will you go straight to horizontals?

Speaker #2: Of course, we didn't perforate that. But right now, one of the other two zones is producing a significant amount of water. So we're going to move in a service rig with a bridge plug.

Uh it's a very good question. I think I wanted to answer it in detail.

I would get in trouble with our Nomad, but

Speaker #2: And we're going to plug off the lowest zone just to see if that increases the oil cut and decreases the water cut. Very straightforward procedure.

With what we've seen so far on ikako 2. Uh, we're very

positive.

That are not stretched beyond that.

Thank you. Um, and as we know,

Speaker #2: that service rig should be in place within the next 15 days. And it's a five-day operation to, pull all the pump and tubing out of the hole, go back in with the bridge plug, and isolate the zone of interest and get it back on production.

Marshall Abbott: We're going to move in a service rig with a bridge plug, and we're going to plug off the lowest zone just to see if that increases the oil cut and decreases the water cut. Very straightforward procedure. That service rig should be in place within the next 15 days, and it's a 5-day operation to pull all the pump and tubing out of the hole, go back in with the bridge plug, and isolate the zone of interest and get it back on production. It's a very straightforward procedure. We would be on that today, but you typically need 30 days of socialization before you can move heavy equipment in. Of course, we're doing that. Excuse me.

Forward to releasing the results of the development program.

Speaker #2: So it's a very straightforward procedure. we would be on that today. But, you typically need 30 days of socialization before you can move heavy equipment in.

[Company Representative] (Arrow Exploration): This action going on in the Middle East is great for the company. Sadly, it's not so great for humanity, but we're taking advantage of it as best we can. Market cap, just under $90 million as of 21 May 2028. We have no debt. Our cash balance as of 1 May is $24 million USD. Our net back on a per barrel basis is $42 a barrel. Both those numbers are increasing and we look forward to further disclosure on that. Net sales at a revenue of $23.5 million in Q1. This is just a quick map on the Colombian entity and the basins that we're active in. Llanos Basin, of course, is where we're the most active. The Middle Magdalena Valley is also where we have production. We have a shut-in platform in the Putumayo, just down outside of Cali.

Speaker #2: And of course, we're doing that. Excuse me.

Speaker #1: Good question. So today, all success, outside of the Obaki at the C7, there were three zones at the top of the stack in the C7.

Speaker #3: Moving on to, plan and priorities for the company going forward. We've had a question, on if the Tapir extension is granted. What is your capital allocation priority?

Thanks, Michelle. A few questions on water. Do you have enough water disposal capacity at the Co., and the Orcas note on Akakoro-1 suggests that the rig will return to this discovery well to shut off water ingress from one particular perforated zone. How do you do this, and how will you control excess water ingress in the Akakoro well going forward? Okay, good question. So,

Speaker #3: Accelerating drilling? Initiating a dividend? To buy back or pursuing M&A?

Becky: Moving on to plan and priorities for the company going forward. We've had a question on if the Tapir extension is granted, what is your capital allocation priority? Accelerating drilling, initiating a dividend, buyback, or pursuing M&A?

[Company Representative] (Arrow Exploration): Moving on to plan and priorities for the company going forward. We've had a question on if the Tapir extension is granted, what is your capital allocation priority? Accelerating drilling, initiating a dividend, buyback, or pursuing M&A?

Speaker #2: it's, it's assuming that we, we get the extension and, of course, we're highly confident, we would proceed with an aggressive development and exploration drilling program.

Speaker #1: that.

Speaker #2: There's still quite a bit of room on this 100-square-mile block. And, we're very proud of that. From their perspective of share buyback, we see that they're much more efficient at, at putting money into the ground as opposed to in a share buyback.

Speaker #2: Perfect. Motion by square. Thank you again

Speaker #2: for updating this with this

Speaker #2: Afternoon. Could I please discuss not closing this?

Marshall Abbott: Assuming that we get the extension, and of course, we're highly confident, we would proceed with an aggressive development and exploration drilling program. There's still quite a bit of room on this 100 square mile block, and we're very proud of that. From the perspective of share buyback, we see that we're much more efficient at putting money into the ground as opposed to in a share buyback. From the perspective of pursuing M&A, as I mentioned, we've looked at 60 opportunities in the last 12 months. We expect to see some of those crystallize. From an M&A perspective, in my experience, it takes that amount of looking to come out with one that really works for you. We have a certain amount of criteria and a matrix that we look at and look for in A&D activity.

Speaker #2: question, so I'll now be off to redirect.

Speaker #2: The opportunity to provide your feedback. In

Speaker #2: in order to make this continually better, understand your

[Company Representative] (Arrow Exploration): The bulk of our production comes from the Llanos. Accessibility is fantastic there. It is prairie for the most part. Very large fincas that are operated by high net worth individuals out of Bogotá primarily. We've never had any shut-ins due to socialization issues. We operate to a very high standard, to a Canadian standard in Llanos, and we've become quite good at it. We value ourselves as being the cheapest drillers and cheapest operators in Colombia overall, and I think that's witnessed by the results that we've had. Here's a quick snapshot of the block that we own. It's kind of shaped like a Canadian hockey stick, of course. Very appropriate. Five discoveries. The first was at RCE, Rio Cravo Este. Second was at Carrizales Norte, then Alberta Llanos, then Mateguafa Attic, and most recently, we've had a discovery at Icaco down at the south end.

Speaker #2: views and expectations.

Speaker #2: This won't happen at the moment, so please, but I'm

Speaker #2: sure directly how you provide the

Speaker #2: from the perspective of pursuing, M&A, as I mentioned, we've looked at 60 opportunities in the last 12 months. we expect to see some of those cris-crystallize.

Speaker #2: On behalf of our team, Arrow,

Speaker #2: Exploration, we would like to thank you for attending today's

Speaker #2: presentation. That now concludes today's

Speaker #2: session. Good afternoon.

Speaker #2: And from an M&A perspective, in my experience, it takes that amount of, of looking to come up with one that really works for you.

Speaker #2: So we have a, a certain amount of criteria in a matrix that we look, look at and look for in A&D activity. And, we're very impressed with the opportunity suite that there is onshore in Columbia.

Speaker #2: So there's quite a bit of work to be done in that regard. And, we've got the, pardon me. We've got the, the deck as you know.

Marshall Abbott: We're very impressed with the opportunity suite that there is onshore in Colombia. There's quite a bit of work to be done in that regard, and we've got. Pardon me. We've got the debt capacity. As you know, we've got no debt, and very strong cash flow on a monthly basis. As I mentioned, the cash flow is outstripping the CapEx, so we're in great shape on the balance sheet, and we look forward to crystallizing on an M&A deal over the next 12 months.

Speaker #2: Accelerating drilling, initiating a dividend or buyback, or pursuing M&A?

[Company Representative] (Arrow Exploration): We've got 3D coverage over the entire block now. That is a huge advantage here. The play type is very simple and straightforward. These thin lines that you see proceeding to the northeast are faults, and we look for structural compression against a fault to define an oil pool. So far, we're five for six. It's an established play type. It's one, again, that you rely on the strength of the aquifer to really push that oil to surface. It's good oil. The net backs we get are superior to what I think some of our competitors have, and we're very proud of the financial position we're in. We are the operator. We have a 50% working interest in the block, 65,000 acres. This block really sat idle for 20 years.

Speaker #2: based on cash flow and the money and the cash flow without stripping the CapEx. So we're in great shape on great shape on the balance sheet.

Speaker #1: Assuming that we get the extension, and of course we're highly confident, we would proceed with an aggressive development and exploration drilling program. There's still quite a bit of room on this 100-square-mile block.

Speaker #2: And we look forward to crystallizing on a M&A deal over the next 12 months.

Speaker #3: Thank you. I'll now move on to the live submitted questions. could you please update as to process for selecting infill drill candidates and outcome progress of the infill drills?

Speaker #1: And we're very proud of that. From their perspective on share buybacks, we see that they're much more efficient at putting money into the ground, as opposed to in a share buyback.

Speaker #2: Sure. So, when we went through the first round of exploitation, and let's just talk about RCE as an example. So, at the RCE, we had the discovery.

Speaker #1: From the perspective of pursuing M&A, as I mentioned, we've looked at 60 opportunities in the last 12 months. We expect to see some of those crystallize.

Becky: Thank you. I'll now move on to the live submitted questions. Could you please update as to process for selecting infill drill candidates and outcome progress of the infill drills?

[Company Representative] (Arrow Exploration): Thank you. I'll now move on to the live submitted questions. Could you please update as to process for selecting infill drill candidates and outcome progress of the infill drills?

Speaker #2: we've drilled now, 12 development wells at RCE that exploit three different horizons that are hydrocarbon-bearing. And based on production rates that we enjoy now from an initial productivity perspective, a well at RCE costs us, if we drill a vertical well, costs us about $2.3 million.

Speaker #1: And from an M&A perspective, in my experience, it takes that amount of looking to come up with one that really works for you.

Marshall Abbott: Sure. When we went through the first round of exploitation, let's just talk about RCE as an example. At the RCE, we had the discovery. We've drilled now 12 development wells at RCE that exploit three different horizons that are hydrocarbon bearing. Based on production rates that we enjoy now from an initial productivity perspective, a well at RCE costs us, if we drill a vertical well, costs us about $2.3 million. With the rates that we see, we typically pick 320 barrels a day as an initial production rate, and that's a net number, net toward 50%. Typically, that can pay out within the first six months. We look at opportunities that are going to pay out very quickly. That's a bit of a hedge that provides us the luxury of still being active if, for some unknown reason, the extension's not granted.

[Company Representative] (Arrow Exploration): We are facing 10-year issues, and the block is set to expire in the first month of 2028. I can assure you that we've been in constant negotiations and discussions with Ecopetrol, the national oil company who controls this block. I met with the Ecopetrol president last week. We have a very positive dialogue going forward. We're very confident that we're going to get an extension to this block. Just for background, Ecopetrol does almost 800,000 barrels a day. This is a very small piece of business for them. In aggregate, the block is producing 10,000 barrels a day with significant upside. From a 10-year perspective, we are dealing with all the regulatory entities in Colombia. Again, we are proud of the way that we operate, and we operate to a Canadian standard, and that's well-recognized.

Speaker #1: So we have a certain amount of criteria in a matrix that we look at and look for in an NDIA activity. And we're very impressed with the opportunity suite that there is onshore in Colombia.

Speaker #2: And with the rates that we see, we typically pick 320 barrels a day as an initial production rate. And that's a net number, net to our 50%.

Speaker #1: So there's quite a bit of work to be done in that regard. And we've got the—pardon me—we've got the deck capacity, as you know.

Speaker #2: typically, that can pay out within the first six months. So, we look at opportunities that are going to pay out very quickly. And that's a bit ahead set, that provides us the luxury of, of still being active if, for some unknown reason, the extension is not granted.

Speaker #1: We've got no debt, a very strong cash flow on a monthly basis. And as I mentioned, the cash flow is outstripping the CapEx, so we're in great shape on the balance sheet.

Speaker #2: We're still going to be in great shape with a healthy cash position. But we look at what the payout's going to be. When we look at the horizontal wells, which come on at or pardon me, which costs us, you know, $3.8 to $4 million per well, our best well paid out in 37 days in an oil price environment that was using the $75 price deck.

Speaker #1: And we look forward to crystallizing an M&A deal over the next 12 months.

Speaker #2: Thank you. I'll now move on to the live submitted questions. Could you please update us on the process for selecting infill drill candidates and the progress or outcomes of the infill drills?

[Company Representative] (Arrow Exploration): To date, those five discoveries have resulted in 39 wells drilled, five well pads, and 27 km of roads built. Cum production to date from 2020 is about 8 million barrels. We're in good shape. The gravity of that crude varies. Some of the thickest horizons are about 18 API, very low viscosity, however. The oil comes out fast. Some of the crude we develop in the upper reaches is about 31, 32 API. Interestingly, over the last few months, we're getting the same price for our heavy as we are for our light. Here is just a quick snapshot of the Icaco discovery. Just going back to place you in the map. We're at the south end of the block up against this fault. Again, three-way closure against the fault is the secret.

Marshall Abbott: We're still going to be in great shape with a healthy cash position. We look at what the payout's going to be when we look at the horizontal wells which cost us $3.8 million to $4 million per well. Our best well paid out in 37 days in an oil price environment that was using the $75 price tag. That gives you an indication of the profitability that we enjoy drilling horizontal wells that come on at 1,000 barrels a day. We're proud of that number and the economics behind it. The fiscal regime, I have to say, onshore Colombia is very supportive of industry being aggressive and pursuing opportunity. Our average royalty is between 8% and 12%, and from the tax perspective, we probably sit at about 30% tax after all costs are recovered.

Speaker #2: So, that gives you an indication of the profitability that we enjoy drilling horizontal wells that come on at 1,000 barrels a day. So we're, we're proud of that number.

Speaker #1: Sure. So, when we went through the first round of exploitation, and let's just talk about our CE as an example. So, at the RCE, we had the discovery, we've drilled now, 12 development wells at RCE that exploit three different horizons that are hydrocarbon bearing.

Speaker #2: And, and the economics behind it. The fiscal regime, I have to say, onshore Columbia is, very supportive of industry being aggressive in pursuing opportunity.

Speaker #2: our average royalty is between 8 and 12 percent. And from the tax perspective, we probably sit at about a 30% tax after all, all costs are, are recovered.

Speaker #1: And based on production rates that we enjoy now, from the initial productivity perspective, a well at RCE costs less if we drill a vertical well. It costs us about $2.3 million.

Speaker #3: now that on horizontals, you just slightly touched on this. Why do you keep on drilling multiple vertical de-development wells following discoveries? Why not drill horizontal wells given their significantly superior productivity index and production rates?

Speaker #1: And with the rates that we see, we typically pick 320 barrels a day as an initial production rate. And that's a net number, net to our 50%.

[Company Representative] (Arrow Exploration): We have depicted a fault coming through here on the map with another fault orthogonal to that. We drilled the discovery well down here. Fantastic discovery. You can see on the seismic line the sort of relief we see at depth. We get closure up against the fault, and we drill very close to that fault to ensure that we're oil-filled. Here's a quick snapshot of some of the sensory tools that we run, the logs that we run. We've got hydrocarbon bearing at about 8,000 feet all the way down to 10,000 feet, three different zones. Right now we're producing out of a single zone at Icaco. There are two other zones that we look to exploit as this study matures. We just completed drilling our second well at Icaco-2, which is 2,000 meters to the northeast.

Speaker #1: typically, that can pay out within the first six months. So we look at opportunities that are gonna pay out very quickly. And that's a bit of a heads up, that provides us the luxury of, of still being active if, for some unknown reason, the extension's not granted.

Speaker #2: So that's really dictated by which zone we're pursuing. when we talk about the C7 zone at the top of the stack, that reservoir averages 20 to 25 feet thick.

Becky: Another on horizontals. You just slightly touched on this. Why do you keep on drilling multiple vertical development wells following discoveries? Why not drill horizontal wells given their significantly superior productivity index and production rates?

[Company Representative] (Arrow Exploration): Another on horizontals. You just slightly touched on this. Why do you keep on drilling multiple vertical development wells following discoveries? Why not drill horizontal wells given their significantly superior productivity index and production rates?

Speaker #2: we're certainly we've got the talent in-house to drill horizontals into a, a reservoir that's that thin. But, when we look at the overall economics and the payback, the vertical wells seem to do better in a thinner reservoir.

Speaker #1: We're still gonna be in great shape with a healthy cash position. But we look at what the payout's going to be. When we look at the horizontal wells, which come on at oh, pardon me, which costs us, you know, 3.8 to 4 million dollars per well, our best well paid out in 37 days in an oil price environment that was using a $75 price deck.

Marshall Abbott: That's really dictated by which zone we're pursuing. When we talk about the C7 zone at the top of the stack, that reservoir averages 20 to 25 feet thick. Certainly, we've got the talent in-house to drill horizontals into a reservoir that's that thin. When we look at the overall economics and the payback, the vertical wells seem to do better in a thinner reservoir. When we're looking at the Ubaque, which is at the base, just above the Paleozoic, those wells are upwards of $4 million. They come on, in some cases, in excess of 2,500 barrels a day. The economics are certainly favorable, and as I mentioned, the best well paid out in 37 days at a suppressed price tag.

Speaker #2: When we're looking at the Obaki, which is at the base, just above the Paleozoic, you know, those wells are upwards of $4 million that come on.

Speaker #1: So, I give you an indication of the profitability that we enjoy drilling horizontal wells that come on at 1,000 barrels a day. So we're proud of that number.

Speaker #2: In some cases, in, in excess of $2,500 barrels a day. the economics are, certainly favorable. And as I mentioned, the best well paid out in 37 days at a suppressed price price deck.

Speaker #1: And the economics behind it, the fiscal regime, I have to say, onshore Colombia is very supportive of the industry being aggressive in pursuing opportunity.

[Company Representative] (Arrow Exploration): It's more than a step out well. It's a baby exploration well, if you will. We call it a delineation well in-house. We're looking forward to the results of that. In fact, that well should be down through the weekend, and we'll be talking about it next week. Mateguafa Attic, which is at the northern end of the block. Again, the same story here with the fault. This is a closing contour that is compressed against that fault. We've got excellent production coming out of Mateguafa. In fact, we drilled our first well at Mateguafa, and it was the largest horizontal well drilled to date in Colombia. As a company overall, last year, we were the 10th most active operator in Colombia. We're well recognized. We're connected in communities. Very tight and information that is actually appreciated in Colombia.

Speaker #2: So, we, we like drilling horizontals, but we drill horizontals primarily into the Obaki reservoir. And that reservoir can be upwards of 80 feet thick with an oil column, equivalent to that.

Speaker #1: Our average royalty is between 8% and 12%. And from a tax perspective, we probably sit at about 30% tax after all costs are recovered.

Speaker #2: So, that dictates whether or not we're drilling verticals versus horizontals.

Speaker #2: Now, about horizontals—you just briefly touched on this. Why do you keep drilling multiple vertical development wells after making discoveries? Why not drill horizontal wells, given their significantly superior productivity index and production rates?

Marshall Abbott: We like drilling horizontals, but we drill horizontals primarily into the Ubaque reservoir, and that reservoir can be upwards of 80 feet thick with an oil column equivalent to that. That dictates whether or not we're drilling verticals versus horizontals.

Speaker #3: And then a number of questions on M&A. can you please provide more color on M&A? Is it asset deals or mergers you're focused on?

Speaker #3: What size of producing assets are you interested in? Why have you not been able to close? any acquisitions? And are acquisitions still a possibility, or has the jump in energy price outlook put this avenue of growth on the back burner?

Speaker #1: So that's really dictated by which zone we're pursuing. when we talk about the C7 zone at the top of the stack, that reservoir averages 20 to 25 feet thick.

Becky: A number of questions on M&A. Can you please provide more color on M&A? Is it asset deals or mergers you're focused on? What size of producing assets are you interested in? Why have you not been able to close any acquisitions? Are acquisitions still a possibility, or has the jump in energy price outlook put this avenue of growth on the back burner?

[Company Representative] (Arrow Exploration): A number of questions on M&A. Can you please provide more color on M&A? Is it asset deals or mergers you're focused on? What size of producing assets are you interested in? Why have you not been able to close any acquisitions? Are acquisitions still a possibility, or has the jump in energy price outlook put this avenue of growth on the back burner?

Speaker #2: Okay. I'll try and be as fulsome as I can on that suite of questions. we've really seen transactions pick up in the last six months in Columbia.

Speaker #1: we're certainly we've got the talent in-house to drill horizontals into a, a reservoir that's that thin. But, when we o look at the overall economics and the payback, the vertical wells seem to do better in a thinner reservoir.

[Company Representative] (Arrow Exploration): All the rumors are true, we find out. That being said, we still have development potential ongoing at Mateguafa Attic, and we look forward to an aggressive develop program through the balance of the year. As I mentioned, other discoveries, the initial discovery at Rio Cravo Este, RCE, is what we call it in-house. This is a snapshot of the platform that we're building. Very busy platforms, drilling operations, production operations, very large camp with upwards of 120 people on the pad at any given time. Very diverse

Speaker #2: and we look at a certain matrix of criteria. That, that, is important to us. So we certainly have the balance sheet to pursue acquisitions.

Speaker #1: When we're looking at the Obaki, which is at the base, just above the Paleozoic, you know, those wells are upwards of 4 million dollars.

Marshall Abbott: Okay. I'll try and be as fulsome as I can on that suite of questions. We've really seen transactions pick up in the last six months in Colombia. We look at a certain matrix of criteria that is important to us. We certainly have the balance sheet to pursue acquisitions. We've also got, as I mentioned, that $20 million prepay, and we've been probing the bond market as well to look at acquisitions that are north of $100 million. We think we have the capacity to consume that on an accretive basis. Of course, we wouldn't do it if it was dilutive to the existing shareholders. We've got prepay, we've got significant cash flow on a monthly basis, and we're looking forward to exploring other money-raising and equity issue deals as we proceed. Right now, we're comfortable in our skin.

Speaker #2: we've also got, as I mentioned, a $20 million prepay. And we've been probing the bond market as well to look at acquisitions that are north of $100 million.

Speaker #1: They come on, in some cases, in excess of 2,500 barrels a day. The economics are certainly favorable. And as I mentioned, the best well paid out in 37 days at a suppressed price deck.

Speaker #2: we think we have we have the capacity to consume that on an accretive basis. Of course, we wouldn't do it if it was diluted.

Speaker #1: So, we, we like drilling horizontals, but we drill horizontals primarily into the Obaki reservoir. And that reservoir can be upwards of 80 feet thick with an oil column, equivalent to that.

Speaker #2: to the existing shareholders. So we've got the prepay. We've got significant cash flow on a monthly basis. And, we're looking forward to exploring other, money raising and equity, issue deals, as we proceed.

Speaker #1: So, that dictates whether or not we're drilling verticals versus horizontals.

Speaker #2: But right now, we're comfortable in our skin. We're, we're not going to do a deal just for the sake of doing the deal. There's lots of opportunity out there.

Speaker #2: And then a number of questions on M&A. can you please provide more color on M&A? Is it asset deals or mergers you're focused on?

Speaker #2: when I look at some of the operators there, you know, there's a very significant Canadian presence, in, in Columbia. We've got PAREX, of course, and Fronterra.

Speaker #2: What size of producing assets are you interested in? Why have you not been able to close? any acquisitions? And are acquisitions still a possibility, or has the jump in energy price outlook put this avenue of growth on the back burner?

Speaker #2: Parenco, Grantierra, Canadian companies are represented to about 300,000 barrels a day. And, here's an example. PAREX taking out Fronterra Fronterra at $30,000 barrels a day.

Marshall Abbott: We're not going to do a deal just for the sake of doing the deal. There's lots of opportunity out there. When I look at some of the operators there's a very significant Canadian presence in Colombia. We've got Parex, of course, Frontera, Perenco, Gran Tierra. The Canadian companies represent about 300,000 barrels a day. Here's an example. Parex taking out Frontera at 30,000 barrels a day. We know that some of the stuff that they're picking up is not going to be of interest to them, but of huge interest to us. We're fairly keen on pursuing blocks that are very proximal to the Tapir block. It's easy drilling. It's very forgiving. Frontera had a substantial position there, and potentially not as much interest that Parex would have. That's just one example. SierraCol was recently bought for just under a billion dollars.

Speaker #1: Okay. I'll try and be as fulsome as I can on that suite of questions. we've really seen transactions pick up in the last six months in Columbia.

Speaker #2: we know that some of the stuff that they're picking up is not going to be of interest to them, but of huge interest to us.

Speaker #1: a-and we look at a certain matrix of criteria. Th-that, is important to us. So we certainly have the balance sheet to pursue acquisitions. we've also got, as I mentioned, that $20 million prepay.

Speaker #2: So we're, we're fairly keen on pursuing, blocks that are very proximal to the Tapir block. It's easy drilling. It's very forgiving. Fronterra had a substantial position there.

Speaker #2: and potentially not as much interest at PAREX would have. that's just one example. Sierra Call, was recently bought for just under $1 billion. we see some of their acreages coming up for grabs.

Speaker #1: And we've been probing the bond market as well to look at acquisitions that are north of $100 million. we think we have we have the capacity to consume that on an incretive basis.

Speaker #2: So as mentioned, the A&D activity has picked up in the last six months. And we're going to do our best to participate in that.

Speaker #1: Of course, we wouldn't do it if it was dilutive, to the existing shareholders. So we've got the prepay. We've got significant cash flow on a monthly basis.

Speaker #3: And last question should be an easy one. can we assure that, investors that will continue to use IMC going forward?

Speaker #1: And, we're looking forward to exploring other, money raising and equity, issue deals, as we proceed. But right now, we're comfortable in our skin. We're, we're not gonna do a deal just for the sake of doing the deal.

Marshall Abbott: We see some of their acreages coming up for grabs. As mentioned, the A&D activity has picked up in the last six months, and we're going to do our best to participate in that.

Speaker #2: Sorry, I missed the last part. Could you repeat that, please?

Speaker #3: Can we assure that we'll, use IMC again going forward? Investor mean company?

Speaker #1: There's lots of opportunity out there. when I look at some of the operators there, you know, there's a very significant Canadian presence, in, in Columbia.

Speaker #2: Oh, well, of course. It's a fabulous platform. I'm very impressed.

Becky: Last question should be an easy one. Can we assure investors that we'll continue to use IMC going forward?

[Company Representative] (Arrow Exploration): Last question should be an easy one. Can we assure investors that we'll continue to use IMC going forward?

Speaker #3: Perfect. I think that brings us to the end of the Q&A.

Marshall Abbott: Sorry, I missed the last part. Could you repeat that, please?

Speaker #1: We've got PAREX, of course, and Fronterra. Parenco, Grantierra, Canadian companies are represented to about 300,000 barrels a day. And, here's an example. PAREX taking out Fronterra Fronterra at 30,000 barrels a day.

Speaker #4: Excellent, guys. If I, may just jump back in there. Thank you very much, indeed, for being so generous of your time and addressing all of those questions that came in, from investors.

Becky: Can we assure that we'll use IMC again going forward? Investor Meet Company.

[Company Representative] (Arrow Exploration): Can we assure that we'll use IMC again going forward? Investor Meet Company.

Speaker #4: And of course, if there are any further questions that do come through, we'll make these available to you immediately after the presentation has ended.

Marshall Abbott: Oh, well, of course. It's a fabulous platform. I'm very impressed.

Speaker #4: But, Marshall, perhaps before really now just looking to redirect those on the call to provide you with their feedback, which I know is particularly important to yourself and the company.

Speaker #1: we know that some of the stuff that they're picking up is not gonna be of interest to them, but of huge interest to us.

Becky: Perfect. I think that brings us to the end of the Q&A.

[Company Representative] (Arrow Exploration): Perfect. I think that brings us to the end of the Q&A.

Jake: Excellent, guys. If I may just jump back in there. Thank you very much indeed for being so generous with your time and addressing all of those questions that came in from investors. Of course, if there are any further questions that do come through, we'll make these available to you immediately after the presentation has ended. Marshall, perhaps before, really now just looking to redirect those on the call to provide you with their feedback, which I know is particularly important to yourself and the company. If I could please just ask you for a few closing comments just to wrap up with, that'd be great.

Operator: Excellent, guys. If I may just jump back in there. Thank you very much indeed for being so generous with your time and addressing all of those questions that came in from investors. Of course, if there are any further questions that do come through, we'll make these available to you immediately after the presentation has ended. Marshall, perhaps before, really now just looking to redirect those on the call to provide you with their feedback, which I know is particularly important to yourself and the company. If I could please just ask you for a few closing comments just to wrap up with, that'd be great.

Speaker #4: If I could please just ask you for a few closing comments just to wrap up with, that'd be great.

Speaker #1: So we're, we're fairly keen on pursuing, blocks that are very proximal to the Tapir block. It's easy drilling. It's very forgiving. Fronterra had a substantial position there.

Speaker #2: Sure. So, the company's healthy. we pride ourselves in that. We've got a very strong balance sheet. We've got dedicated staff of 40 people down in Columbia.

Speaker #1: a-and potentially not as much interest that PAREX would have. that's just one example. Sierra Call, was recently bought for just under a billion dollars.

Speaker #2: 11 people up in Calgary. We've got multiple years of experience in the trade. the balance sheet is important to us. The productivity is important to us.

Speaker #1: we see some of their acreages coming up for grabs. So, as mentioned, the A&D activity has picked up in the last six months. And we're gonna do our best to participate in that.

Speaker #2: every decision we make with respect to drilling or recompletions or, or, infill wells and, water disposal, we meet on a regular basis. So we meet on teams every day with our group down in, in Columbia.

Marshall Abbott: Sure. The company's healthy. We pride ourselves in that. We've got a very strong balance sheet. We've got dedicated staff of 40 people down in Colombia, 11 people up in Calgary. We've got multiple years of experience in the trade. The balance sheet is important to us. The productivity is important to us. Every decision we make with respect to drilling or recompletions or infill wells and water disposal, we meet on a regular basis. We meet on Teams every day with our group down in Colombia. That's not five days a week, that's seven days a week. We're on top of operations on an hourly basis, and we're quite proud of the results that we've had. I think that when we look at the reaction that we've had with our peers in Bogota, all the rumors are true in Bogota, and there are no secrets.

Speaker #2: And last question should be an easy one. can we assure that, investors that will continue to use IMC going forward?

Speaker #2: That's not five days a week. That's seven days a week. So we're on top of operations. On an hourly basis. And, we're very proud of the, results that we've had.

Speaker #1: I'm sorry. I missed the last part. Could you repeat that, please?

Speaker #2: Can we assure that we'll, use IMC again going forward? Investor meet company.

Speaker #2: I think that, when we look at the reaction that we've had with our peers in, in Bogota, all the rumors are true. In Bogota, and there are no secrets.

Speaker #1: Oh, well, of course. It's a fabulous platform. I'm very impressed.

Speaker #2: And so everybody knows what everybody's doing. And we're certainly being recognized. From an operator perspective, that, the company's healthy. We're aggressive. And, we intend to keep it that way.

Speaker #2: of the Q&A.

Speaker #3: Excellent. Guys, if I, may just jump back in there. Thank you very much indeed for being so generous with your time and addressing all of those questions that came in, from investors.

Speaker #2: And we, look forward to growing the company. I would certainly like to get this company to at least 10,000 barrels a day. within the next 24 months.

Speaker #3: And of course, if there are any further to you immediately after the presentation has ended. But, Marshall, perhaps before really now just looking to redirect those on the call to provide you with their feedback, which I know is particularly important to yourself and the company.

Marshall Abbott: Everybody knows what everybody's doing, and we're certainly being recognized from an operator perspective that the company's healthy, we're aggressive, and we intend to keep it that way. We look forward to growing the company. I would certainly like to get this company to at least 10,000 barrels a day within the next 24 months. That's going to be a tall order, to be sure, but I think the potential exists for us to eclipse that.

Speaker #2: And so that's going to be a, a tall order, to be sure. But I think the potential exists for us to eclipse that.

Speaker #3: If I could please just ask you for a few closing comments just to wrap up with, that'd be great.

Speaker #4: Perfect, Marshall. That's great. And thank you once again for updating investors at this afternoon. Could I please ask investors not to close this session?

Speaker #1: Sure. So, the company's healthy. we pride ourselves in that. We've got a very strong balance sheet. We've got dedicated staff of 40 people down in Columbia.

Speaker #4: As you'll now be automatically redirected to the opportunity to provide your feedback in order that management team can really better understand your views and expectations.

Speaker #4: This won't take a few moments to complete. But I'm sure it'd be greatly valued by the company. On behalf of management team of Aero Exploration, we would like to thank you for attending today's presentation.

Speaker #1: 11 people up in Calgary. We've got multiple years of experience in the trade. the balance sheet is important to us. The productivity is important to us.

Jake: Perfect, Marshall. That's great. Thank you once again for updating investors this afternoon. Could I please ask investors not to close this session, as you'll now be automatically redirected for the opportunity to provide your feedback in order that the management team can probably best understand your views and expectations. This will only take a few moments to complete, but I'm sure it'll be greatly valued by the company. On behalf of the management team of Arrow Exploration, we would like to thank you for attending today's presentation. That now concludes today's session. Good afternoon to you all.

Operator: Perfect, Marshall. That's great. Thank you once again for updating investors this afternoon. Could I please ask investors not to close this session, as you'll now be automatically redirected for the opportunity to provide your feedback in order that the management team can probably best understand your views and expectations. This will only take a few moments to complete, but I'm sure it'll be greatly valued by the company. On behalf of the management team of Arrow Exploration, we would like to thank you for attending today's presentation. That now concludes today's session. Good afternoon to you all.

Speaker #1: every decision we make with respect to drilling or recompletions or, or, infill wells and, water disposal, we meet on a regular basis. So we meet on a Teams every day with our group down in, in Columbia.

Speaker #1: That's not five days a week. That's seven days a week. So we're on top of operations on an hourly basis. And, we're very proud of the, results that we've had.

Speaker #1: I think that, when we look at the reaction that we've had with our peers in, in Bogota, all the rumors are true in Bogota, and they're no secrets.

Speaker #1: And so everybody knows what everybody's doing. And we're certainly being recognized, from an operator perspective, that, the company's healthy. We're aggressive. And, we intend to keep it that way.

Speaker #1: And we, look forward to growing the company. I would certainly like to get this company to at least 10,000 barrels a day. next The 24 24 months.

Marshall Abbott: where the company sits from a cash position, where we're headed on the drilling front, and even provide a snippet on acquisitions that we're looking at. We've got breadth and depth of talent that work on our behalf. Solid group of directors, all oil business fluent, and a great suite of executives who on average have 25 to 30 years of experience in the oil and gas game. We're really proud of the people that are supporting this deal and moving forward. This management team got active in 2020. We took over Arrow at that point in time. It was virtually bankrupt, and of course, it struggled through COVID and the economic threshold at the time. In 2021, we were successful in an AIM listing at 6.25p. Of course, those shareholders are happy campers at the moment.

Speaker #1: And so it's gonna months. So it's going to be follow be a tall order for sure. order here, but I think But I think the potential exists for us the answer exists for us to click to close that.

Speaker #3: Perfect. Marshall, that's great.

Speaker #3: Thank you again for updating me just with, this

Speaker #3: afternoon. please answer me just with

Speaker #3: not to close this question, so we'll now be successful.

Speaker #3: redirecting the opportunity to provide your

Speaker #3: feedback in order to manage the company

Speaker #3: better and sound your views and

Speaker #3: expectations. This won't take many moments to

Speaker #3: complete, but I'm sure directly valued by the

Speaker #3: company. On behalf of S&C

Speaker #3: And Arrow Exploration, we would like to thank you for

Speaker #3: attending today's presentation. That

Speaker #3: now concludes today's session. Have a good

Marshall Abbott: We launched into a development program based on the discovery that we had at the RCE production platform. RCE has been a fantastic discovery. On balance in the whole Tapir Block, which we'll talk about in a minute, we've got a 100 square mile block. We've drilled six exploration wells, and five of them have been successful. The play type and the morphology of that particular discovery, along with the other discoveries, has allowed us to drill another 40 wells. 2023, we shot a 100 square mile 3D seismic program on the West Tapir block. That resulted in a significant discovery at Carrizales Norte. 2024, our first horizontal well at Carrizales Norte. Just for background, my staff has experience in drilling 600 horizontal wells, not only in Canada, but in US and in Colombia.

Marshall Abbott: We also made another discovery up the same fault trend at the Alberta Llanos. We then shot an additional 3D seismic program in 2025 on the Southeast Tapir block. That has resulted in 3 exploration wells drilled, 2 of them successful. We've also implemented a significant water disposal infrastructure in all of our pads. Today we are disposing of 85,000 barrels a day of fresh water. Water is your friend in the Llanos Basin. It's a very significant and strong aquifer. That increases your recovery of original oil in place from 10% to 15% to upwards of 35% to 40%. We're hovering around 5,000 barrels of oil per day. We've got just under 12 million barrels of 2P reserves at 2025. That's at a significantly reduced price back then of course what we're experiencing today.

Marshall Abbott: This action going on in the Middle East is great for the company. Sadly, it's not so great for humanity, but we're taking advantage of it as best we can. Market cap, just under $90 million as of 21 May 2028. We have no debt. Our cash balance as of 1 May is $24 million USD. Our net back on a per barrel basis is $42 a barrel. Both those numbers are increasing and we look forward to further disclosure on that. Net sales at a revenue of $23.5 million in Q1. This is just a quick map on the Colombian entity and the basins that we're active in. Llanos Basin, of course, is where we're the most active. The Middle Magdalena Valley is also where we have production. We have a shut-in platform in the Putumayo, just down outside of Cali.

Marshall Abbott: The bulk of our production comes from the Llanos. Accessibility is fantastic there. It is prairie for the most part. Very large fincas that are operated by high net worth individuals out of Bogotá primarily. We've never had any shut-ins due to socialization issues. We operate to a very high standard, to a Canadian standard in Llanos, and we've become quite good at it. We value ourselves as being the cheapest drillers and cheapest operators in Colombia overall, and I think that's witnessed by the results that we've had. Here's a quick snapshot of the block that we own. It's kind of shaped like a Canadian hockey stick, of course. Very appropriate. Five discoveries. The first was at RCE, Rio Cravo Este. Second was at Carrizales Norte, then Alberta Llanos, then Mateguafa Attic, and most recently, we've had a discovery at Icaco down at the south end.

Marshall Abbott: We've got 3D coverage over the entire block now. That is a huge advantage here. The play type is very simple and straightforward. These thin lines that you see proceeding to the northeast are faults, and we look for structural compression against a fault to define an oil pool. So far, we're five for six. It's an established play type. It's one, again, that you rely on the strength of the aquifer to really push that oil to surface. It's good oil. The net backs we get are superior to what I think some of our competitors have, and we're very proud of the financial position we're in. We are the operator. We have a 50% working interest in the block, 65,000 acres. This block really sat idle for 20 years.

Marshall Abbott: We are facing 10-year issues, and the block is set to expire in the first month of 2028. I can assure you that we've been in constant negotiations and discussions with Ecopetrol, the national oil company who controls this block. I met with the Ecopetrol president last week. We have a very positive dialogue going forward. We're very confident that we're going to get an extension to this block. Just for background, Ecopetrol does almost 800,000 barrels a day. This is a very small piece of business for them. In aggregate, the block is producing 10,000 barrels a day with significant upside. From a 10-year perspective, we are dealing with all the regulatory entities in Colombia. Again, we are proud of the way that we operate, and we operate to a Canadian standard, and that's well-recognized.

Marshall Abbott: To date, those five discoveries have resulted in 39 wells drilled, five well pads, and 27 km of roads built. Cum production to date from 2020 is about 8 million barrels. We're in good shape. The gravity of that crude varies. Some of the thickest horizons are about 18 API, very low viscosity, however. The oil comes out fast. Some of the crude we develop in the upper reaches is about 31, 32 API. Interestingly, over the last few months, we're getting the same price for our heavy as we are for our light. Here is just a quick snapshot of the Icaco discovery. Just going back to place you in the map. We're at the south end of the block up against this fault. Again, three-way closure against the fault is the secret.

Marshall Abbott: We have depicted a fault coming through here on the map with another fault orthogonal to that. We drilled the discovery well down here. Fantastic discovery. You can see on the seismic line the sort of relief we see at depth. We get closure up against the fault, and we drill very close to that fault to ensure that we're oil-filled. Here's a quick snapshot of some of the sensory tools that we run, the logs that we run. We've got hydrocarbon bearing at about 8,000 feet all the way down to 10,000 feet, three different zones. Right now we're producing out of a single zone at Icaco. There are two other zones that we look to exploit as this study matures. We just completed drilling our second well at Icaco-2, which is 2,000 meters to the northeast.

Marshall Abbott: It's more than a step out well. It's a baby exploration well, if you will. We call it a delineation well in-house. We're looking forward to the results of that. In fact, that well should be down through the weekend, and we'll be talking about it next week. Mateguafa Attic, which is at the northern end of the block. Again, the same story here with the fault. This is a closing contour that is compressed against that fault. We've got excellent production coming out of Mateguafa. In fact, we drilled our first well at Mateguafa, and it was the largest horizontal well drilled to date in Colombia. As a company overall, last year, we were the 10th most active operator in Colombia. We're well recognized. We're connected in communities. Very tight and information that is actually appreciated in Colombia.

Marshall Abbott: All the rumors are true, we find out. That being said, we still have development potential ongoing at Mateguafa Attic, and we look forward to an aggressive develop program through the balance of the year. As I mentioned, other discoveries, the initial discovery at Rio Cravo Este, RCE, is what we call it in-house. This is a snapshot of the platform that we're building. Very busy platforms, drilling operations, production operations, very large camp with upwards of 120 people on the pad at any given time. Very diverse

Speaker #3: afternoon. See you all.