Arrow Exploration : Releases an Updated Corporate Presentation

ARROW

EXPLORATION

Growing & Socially-Responsible

Colombia-Focused Energy

Company

AIM|TSXV : AXL

June 2024

Corporate Presentation

Unless stated otherwise, all dollar figures refer to US dollars	ARROW EXPLORATION CORP. (TSXV | AIM : AXL)

Disclaimer

IMPORTANT INFORMATION

The content of information contained in this presentation (the "Presentation") has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 ("FSMA"). Reliance upon this Presentation for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing all of the property or other assets invested. If any person is in any doubt as to the contents of this Presentation, they should seek independent advice from a person who is authorised for the purposes of FSMA and who specialises in advising in investments of this kind.

The information contained in this Presentation has been prepared by the Company as at the date of this Presentation and is subject to updating, completion, revision, further verification and amendment without notice. No third party has independently verified any of the information contained in this Presentation.

The Company does not undertake any obligation to provide any additional information or to update this Presentation or any additional information or to correct any inaccuracies in any such information which may become apparent. This document sets out certain features of the Company and does not purport to provide a complete description of the Company or the shares in the Company.

No reliance may be placed for any purpose whatsoever on the information contained in this Presentation or on its completeness, accuracy or fairness thereof, nor is any responsibility accepted for any errors, misstatements in, or omission from, this Presentation or any direct or consequential loss however arising from any use of, or reliance on, this Presentation or otherwise in connection with it.

This Presentation does not constitute, or form part of, an admission document, listing particulars or a prospectus relating to the Company, nor does it constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares in the Company nor shall it or any part of it, or the fact of its distribution, form the basis of, or be relied upon in connection with, or act as any inducement to enter into any contract therefor. This Presentation has not been reviewed or approved by or filed with any governmental body or agency.

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This Presentation or documents referred to in it may contain forward looking statements. These statements relate to the future prospects developments and business strategies of the Company and its subsidiaries (the "Group"). Forward looking statements are identified by the use of such terms as "believe", "could", "envisage", "estimate", "potential", "intend", "may", "plan", "will" or the negative of those, variations or comparable expressions, including references to assumptions. The forward looking statements contained in this Presentation are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by those statements. If one or more of these risks or uncertainties materialises, or if underlying assumptions prove incorrect, the Group's actual results may vary materially from those expected, estimated or projected. Given these risks and uncertainties, potential investors should not place any reliance on forward looking statements. These forward looking statements speak only as at the date of this Presentation.

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PAGE 1

Arrow Exploration

Growing & Socially-ResponsibleColombia-Focused Energy Company

2	Production	11.9	$280
million
3,600+	Mmboe 2P
opportunity rich	boe/d	Corporate	2P Corporate
Columbian
basins		reserves - Year	reserves - YE
	End 2023	2023

		Seasoned	Pursuing	15
Committed	Compelling	executive
accretive
to ESG	valuation	team and
acquisitions
		Board	Wells In 2024

1.

Un-risked potential production based on internal management estimates as of February 2022

PAGE 2

Corporate Snapshot

Analyst Coverage Share Ownership

Institutional 33.4%

Meridian

21.0%

Retail 19.6%

High Net Worth 18.8%

Management 7.2%

Firm	Analyst Name
Auctus Advisors	Stephane Foucaud
Canaccord Genuity	Charlie Sharp
Limited
Haywood Securities	Christopher Jones
Zeus Capital	Daniel Slater

	Market at March 31, 2024
$84M USD($114M		$11.5M USD
CAD)
Market Cap		Cash in Bank
		Assets
3,600+ BOE/D		11.9 MBOE
Production		2P Reserves at Dec 31, 2023
		Valuation
1.9X		$19,102
Price/2023E Cash Flow		Ent. Value2/BOE 2023 Q3 Production

286M

Shares O/S (303M fully-diluted)

$56/bbl USD

Q1 2024 Oil Netbacks

$4.15

Ent. Value1/BOE 2P Reserves

1. Enterprise Value = Market Cap plus Debt minus Cash
2. Boury GEC December 31st, 2022 Reserve Report. Arrow's 50% interest in the Tapir block is contingent on the assignment by Ecopetrol of such interest to Arrow.

PAGE 3

Share Price vs Production
4000															0.3
3500														3600	0.25
3000
2500													2730		0.2
											2518
2000											2335			0.15
									2169
1500							1736	1635						0.1
					1503
1000
		1144
			980											0.05
500	575	712
0.135	0.1575	0.165		0.185	0.1625	0.21	0.1975	0.1825	0.22	0.26
0	0.0625	0.07		0
	Oct-21	Dec-21	Q1 2022	Q2 2022	Q3 2022	Q4 2022	Q1 2023	Q2 2023	Q3 2023	Q4 2023	Q1 2024	Jun-24
					Share Price (LSE)		Production (boe/d)
Financial Data* As at Jan 1, 2024		Arrow Exploration	Mean UK Selected Peers
			FY24 EV/Revenue	0.4x			1.0x
			FY24 EV/EBITDA		0.6x			1.5x
			FY24 EV/EBITDA		1.4x			2.0x
			FY24 EV/DACF		1.2x			2.3x
			FY24 EV/Production	$16,300		$19,600
			FY24 P/E		1.9x			4.5x
			As at Jan 1, 2024		Arrow Exploration	Mean LATAM Selected Peers
			FY24 EV/Revenue	0.4x			1.1x
			FY24 EV/EBITDA		0.6x			1.8x
			FY24 EV/EBITDA		1.7x			2.4x
			FY24 EV/DACF		1.2x			2.5x
			FY24 EV/Production	$16,300		$24,500
			FY24 P/E		1.9x			3.4x

* per Canaccord Genuity & Auctus Advisors	PAGE 4

2024 Board Approved Budget

Funded through cash balance and operations cash flow. No external funding sources required.

2024 - 15 well drilling program.

• CN development focus
• Low Risk Exploration at Mateguafa, Baquiano, Carrizales Norte

2024 - $44 million capital est.

Infrastructure

• Budget funds targeting Tapir
• $34mm allocated to drilling
• Four Hz wells planned with additional Hz wells on success at Carrizales Norte

• 2024 Pad upgrades at Mateguafa and new pad and road for Baquiano
• 2024 Carrizales Norte HZ well pad (CN B)
• Water disposal well

• Testing Baquiano and Mateguafa Prospects
• Expanding Carrizales Norte

• Expected to Be Driven By Multiple Near-Term Catalysts

	Dec 2023					2024
						CN B	CN A/B		Mateguafa	Civil Work
RCE - 7	RCE - 8	Oso	Oso	CN A	RCE Water	Baquiano	Prep for
Pardo 3	Pardo 4	Pad Dev	Disposal	Pad HZ	Water	Exp	Attic	2025 Drill
		Well Dev	Disposal
							Exploration	Program

PAGE 5

Seasoned Leadership and Board of Directors

Collectively we have proven success

	Company	Area	Production	Return to
Historical			at Exit	Shareholder
		(boe/d)	(CAGR)
Success
Cougar Hydrocarbons	Canada	3,000	280%
(8X Proven
Executers)	Equatorial Energy	Indonesia	13,000	150%
	Sabretooth Energy	Canada	1,700	100%

Board of Directors

15+190+ years

O&G jurisdictions worked in	Combined management
experience

Marshall Abbott	P. Gage Jull	Grant Carnie		Anthony Zaidi		Ravi Sharma		Ian Langley
CEO & Director 2,4	Executive Chair 1,3	Senior NED (I) 2*,4		NED (I) 1,3*		NED (I) 2,4*		NED (I) 1*,3

* Denotes Chair

(I) Independent

1. Audit Committee
2. Compensation Committee
3. Environment, Social & Governance Committee
4. Reserves Committee

Leadership

							Andrew Jones
	Joe McFarlane	Giovanni Flautero	Phil Miller		Alex Mora
			SVP Operations
	CFO	VP, Engineering	SVP Exploration		VP, Finance
1.	Estimated CAGR in share price during management tenure with previous companies					PAGE 6

Attractive Fiscal Terms

Still top decile fiscal regime worldwide.

80.0%

70.0%

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

USA (Texas)

Colombia

Argentina

Brazil

Bolivia

Canada (Alberta)

Peru

Mexico

Royalty Tax

PAGE 7

Asset Overview

				Current
Asset	Country	Basin	W.I.	Production Operator

(boe/d, net)

Assets	1. Tapir	Colombia	Llanos	50%(1)	3,300	Arrow(2)
Core	2. Oso Pardo Colombia	MMV	100%	200	Arrow
	3. Ombu	Colombia	Putumayo	10%	0*	Emerald
	* Expect 280 Boe/d once back online
	4. Alberta	Canada	WCSB	100%	100	Arrow &
	other
	* Expect 250 Boe/d additional once gas price recovers
	Total				3,600+
	Production
	Production				4,130+
	Capacity

1. By way of a private commercial contract with the recognized interest holder before Ecopetrol S.A., Arrow is entitled to receive 50% of the production from the Tapir block.
2. By way of a private commercial contract with the recognized interest holder before Ecopetrol S.A., Arrow is the contract operator of the Tapir block.

Colombia	Sedimentary Basins

Middle

Magdalena

Valley 2

Bogota	1
	LLanos

3

PAGE 8

2023 Year-End Reserves

Price Deck

Year	YE 2023	$/bbl
	Brent
			17,800
2024		78.00			$445MM
2025		80.00
2026		81.00					Year-End
2027		82.50
2028		84.50
2029		85.50
2030		87.21
2031+	+2% per year	11,800
						$280MM

5,290	$135MM

1P (Mboe)

2P (Mboe)

3P (Mboe)

1P (NPV10%)

2P (NPV10%)

3P (NPV10%)

PAGE 9