Colombian Asset Overview

2TapirLlanos0.5-ARROWPetroleos Colombianos
3Oso PardoMagdalena1115ARROWN/A
4Mono Araña(1)Magdalena0.4160Gran TierraGran Tierra
5CapellaCaguan/ Putumayo0.1245Emerald EnergyEmerald Energy
6COR 39Magdalena1-ARROWN/A
7Los PicachosCaguan/ Putumayo0.38-HupecolHupecol
8MacayaCaguan/ Putumayo0.38-HupecolHupecol
9CoatiCaguan/ Putumayo0.2-AmerisurAmerisur

  1. Gran Tierra is the technical operator, Arrow’s subsidiary Carrao Energy S.A. is recognized as the contract operator by the ANH.

Colombia: Again Open for Business

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

Colombian Oil & Gas Industry Dynamics

  • World commodity pricing exposure to higher Brent oil prices
  • Good access to infrastructure with spare pipeline capacity – no bottlenecks
  • Two port facilities in Caribbean provide ample export capacity
  • The recent Presidential election on June 17, 2018 has resulted in a government that is much more supportive of the oil and gas industry than the previous leadership.
  • Oil is Colombia’s largest net export article (to the U.S.) and represents an important contribution to the country’s GDP (20-25%)
  • Excellent fiscal terms (royalty/tax regime) introduced in 2003/2004 resulted in production nearly doubling to approximately 1.0 mmbbl/d by 2012
    • Royalties remain very attractive (8-14% on ARROW properties)