Asset Overview

AssetBasinWINet Production
1 - CoreTapirLlanos50%*2,300PetrolCo*
2 - CoreSanta Isabel (Oso Pardo)MMV100%130ARROW
3AlbertaWCSB100%300Arrow & Other

*Arrow’s beneficial 50% interest in the Tapir block is contingent on the assignment by Ecopetrol.

Colombian Oil & Gas Industry Dynamics

  • World commodity pricing exposure to higher Brent oil prices (v. WTI)
  • Good access to infrastructure with spare pipeline capacity – no bottlenecks
  • Two port facilities in Caribbean provide ample export capacity
  • Oil a very important contribution to the country’s exports (30%+) and a government that is very supportive of the oil and gas industry
  • Excellent fiscal terms (royalty/tax regime) introduced in 2003/2004 resulted in production nearly doubling to approximately 1.0 MMbbls/d by 2012
    • Royalties remain very attractive (8-14% on Arrow properties)
  • Recent protests do not change the long-term, stable outlook for Colombia, one of South America’s most fiscally responsible countries

Colombia: Again Open for Business

Favourable business landscape and a favourable political outlook (pro-business government)