Auctus Advisors Maintains Target Price on Oil Exploration Co. Following Production Update
Research Report

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Disclosures for Auctus Advisors, Arrow Exploration Corp., November 11, 2024

Arrow Exploration Corp.(“Arrow” or the “Company”) is a corporate client of Auctus Advisors LLP (“Auctus”).Auctus receives, and has received in the past 12 months, compensation for providing corporate broking and/or investmentbanking services to the Company, including the publication and dissemination of marketing material from time to time.MiFID II DisclosuresThis document, being paid for by a corporate issuer, is believed by Auctus to be an ‘acceptable minor non-monetary benefit’as set out in Article 12 (3) of the Commission Delegated Act C(2016)2031 which is part of UK law by virtue of the EuropeanUnion (Withdrawal) Act 2018.It is produced solely in support of our corporate broking and corporate finance business. Auctusdoes not offer a secondary execution service in the UK.This note is a marketing communication and NOT independent research. As such, it has not been prepared in accordancewith legal requirements designed to promote the independence of investment research and this note is NOT subject tothe prohibition on dealing ahead of the dissemination of investment research.AuthorThe research analyst who prepared this research report was Stephane Foucaud, a partner of Auctus.Not an offer to buy or sellUnder no circumstances is this note to be construed to be an offer to buy or sell or deal in any security and/or derivativeinstruments. It is not an initiation or an inducement to engage in investment activity under section 21 of the Financial Servicesand Markets Act 2000.Note prepared in good faith and in reliance on publicly available informationComments made in this note have been arrived at in good faith and are based, at least in part, on current public informationthat Auctus considers reliable, but which it does not represent to be accurate or complete, and it should not be relied on assuch.The information, opinions, forecasts and estimates contained in this document are current as of the date of thisdocument and are subject to change without prior notification. No representation or warranty either actual or implied is madeas to the accuracy, precision, completeness or correctness of the statements, opinions and judgements contained in thisdocument.Auctus’ and related interestsThe persons who produced this note may be partners, employees and/or associates of Auctus. Auctus and/or its employeesand/or partners and associates may or may not hold shares, warrants, options, other derivative instruments or other financialinterests in the Company and reserve the right to acquire, hold or dispose of such positions in the future and without priornotification to the Company or any other person.Information purposes onlyThis document is intended to be for background information purposes only and should be treated as such. This note is furnishedon the basis and understanding that Auctus is under no responsibility or liability whatsoever in respect thereof, whether totheCompany or any other person.Investment Risk WarningThe value of any potential investment made in relation to companies mentioned in this document may rise or fall and sumsrealised may be less than those originally invested. Any reference to past performance should not be construed as being aguide to future performance. Investment in small companies, and especially upstream oil & gas companies, carries a highdegree of risk and investment in the companies or commodities mentioned in this document may be affected by relatedcurrency variations. Changes inthe pricing of related currencies and or commodities mentioned in this document may havean adverse effect on the value, price or income of the investment.

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Auctus Advisors analyst Stephane Foucaud, in a research report published on November 11, 2024, maintained a target price of £0.70 on Arrow Exploration Corp. (AXL:TSX.V; AXL:LSE). The report follows Arrow's operational update on its Carrizales Norte wells and water disposal infrastructure.

Foucaud highlighted strong production from the company's latest well, stating, "The fifth horizontal well at Carrizales Norte (CNB HZ-6) is producing 1.9 mbbl/d of oil (0.95 mbbl/d net to Arrow) with a water cut of 31%. The well reached TD ~ one month ago."

The analyst noted consistent production across existing wells, commenting, "Overall current gross oil production from the existing horizontal wells (CNB HZ-1, HZ-3, HZ-4, and HZ-5 but excluding HZ-6) is 4.36 mbbl/d (2.18 mbbl/d net to Arrow) with each well producing 1-1.16 mbbl/d (gross)."

Regarding water management, Foucaud stated, "Arrow has now completed the water disposal facility at the CNB pad. The facility began operating on 2 November. Combined with the water disposal facilities at the CN and RCE pads, Arrow believes it has the ability to dispose of all water to be produced from those pads and increase the speed of the well pumps, adding initially 600-800 bbl/d of oil production (300-400 bbl/d net to Arrow)."

The report highlighted Arrow's strong financial position, noting, "Arrow held US$18mm in cash on 11 November 2024, up US$3 mm compared to the cash position on 23 September. While the company has a very active drilling program, the cash increase over the last 6 weeks represents an annual cash build-up run rate of US$24 mm per year."

Auctus Advisors' valuation methodology is based on Net Asset Value (NAV). Foucaud explained, "Our Core NAV based on the company's 2P reserves is £0.32/sh. Booking 4.35 mmbbl net reserves at Carrizales Noroeste in the next reserve report could add a further £0.25/sh to our Core NAV. Our ReNAV is £0.67/sh."

In conclusion, Auctus Advisors' maintenance of their £0.70 target price reflects confidence in Arrow Exploration's operational execution and growth potential. The share price at the time of the report of £0.25 represents a potential return of approximately 180% to the analyst's target price.