Asset Overview
| Asset | Basin | WI | Net Production (boe/d) | Operator | |
|---|---|---|---|---|---|
| 1 - Core | Tapir | Llanos | 50%* | 4,200 | PetrolCo* |
| 2 - Core | Santa Isabel (Oso Pardo) | MMV | 100% | 200 | ARROW |
| 3 | Alberta, Canada | WCSB | 100% | 100 | Arrow & Other |
| 4 | Ombu | Putumayo | 10% | 0 | Emerald |
| TOTAL | 4,500+ |
*Pursuant to certain private agreements entered between Arrow Exploration Corp. and Petrolco S.A., Arrow is entitled to receive 50% of the production from the Tapir block, and Petrolco S.A. has the right to request approval from Ecopetrol S.A. for the assignment of 50% of all rights, interests and obligations to Arrow, under the Association Contract.
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
