Date: 21-25 June 2021

Organizer: Vostock Capital

Web site: https://bit.ly/3xhxHBS

The 3rd Colombia Oil & Gas Online Business Congress and 1-2-1 meetings is an international business platform, bringing together flagship oil and gas companies from Latin America and world suppliers for the industry. The Colombia Oil & Gas 2021 Online Business Congress enables executives to continue networking, share ideas and experience, & work out anti-crisis solutions in a safe virtual format.

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Congress Highlights:

 250+ decision-makers of Oil and Gas industry from Colombia and all-over Latin America

Colombia, Ecuador, Brazil, Peru, Argentina, etc., as well as government officials, regulatory bodies, project owners, technology and service providers, international and local investors

 Strategic Opening Session – Government Plans to Strengthen the Oil and Gas Industry in Colombia in the Post-Pandemic Times

New governments strategies, plans of projects initiators, operators, and investors

 Major Oil and Gas Projects of Colombia and LATAM: Status and Updates in Current Economic Situation

Upcoming, ongoing, and planned projects in the region; identification of the new strategies of the key companies to survive in this new economic situation?

• Breakthrough Innovations for Oil and Gas Industry in the region

Innovative technologies, equipment, and services, discussions on what technology is needed for the optimization of the projects.

• Attracting Potential Investors and Financial Opportunities to the Oil and Gas Industry in Colombia and LATAM.
• Hotline with business experts!

Ask your burning questions, call for advice, and share your experience during and after sessions!

 Online 1-2-1 Meetings and Business Networking

Connect with industry leaders while working from home

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 Among the regular participants: EcoPetrol, Biomax, ANH, Campetrol, CEPSA, Emerald Energy, ConocoPhillips, CleanEnergy Resources, Canacol, Trafigura, GranTierra Energy, TGI, InterOil, ProGasur, PromiGas, Equion, Hupecol, Mompos Oil, PDVSA, Refineria Sebastopol, Proma, Chevron, Repsol, Terpel, NGEC, Tenaris, MCDERMOTT, Frontera, Shell, Petrobras, Interoil, Garrido, AECOM, Montagas, ABC, CruzSur, Siemens, Wattle, Petro Colombia, Halliburton, Sacyr, Mansarovar, Spiecapag, Bridgemaster, Tracerco, TPC, IBM, Posneft, Honeywell, Tecpetrol and many more.

Organizing Committee Contact:
Catalina Velasco,

LatAm Marketing Manager
cvelasco@vostockcapital.com

Official website: https://bit.ly/3xhxHBS 

Sponsored content

Parex Resources and CNE Oil & Gas, a subsidiary of Canacol Energy, were awarded four areas, with associated investments estimated at approximately US$ 40 million.

“The signing of these four contracts, which represent an associated investment of approximately 40 million dollars, are a sample of how the government’s policies for the reactivation of the hydrocarbon sector have worked, because after 5 years without signing new exploration and production contracts, we will close 2020 with 30 new contracts thanks to the Continuous Area Nomination Process. This sector will continue to be the core of the sustainable reactivation as a gateway to investment and employment generation, as well as the fundamental axis of our energy self-sufficiency,” said Minister of Mines and Energy, Diego Mesa Puyo.

Above photo: Rafael Pinto of Parex Resources signs contracts for the third cycle of the PPAA in ANH offices. Photo: ANH

“The result of the third cycle of the PPAA is the reflection of a sector that has remained active and in force, despite the challenges posed by the pandemic and the price crisis and also of the stake that companies like Parex and Canacol have made in the Colombian industry. We already have great expectations for the fourth cycle, the Colombia Round 2021, which will present an attractive offer of opportunities, the revision of the contractual terms and the simplification of the processes,” added Armando Zamora Reyes, President of the ANH.

The first two cycles of the PPAA awarded 26 areas with investment commitments of $950 million dollars. A total of 70 areas were offered, with an award success rate of 37%.

The third cycle completes 30 awarded areas with associated investments of nearly one billion dollars.

The fourth cycle of the PPAA, the Colombia 2021 Round is expected to present an attractive offer of opportunities based on geological knowledge, the redefinition and release of the land map, the simplification of the terms of reference, a more efficient selection process of contractors, done in a joint construction with the industry and other stakeholders.

Click here for more information or to register.

Online Forum participants will benefit from

• Prescheduled One-on-One meetings in virtual rooms
• Prescheduled brief presentations and meetings
• Online platform that allows to ask, comment, discuss in a chat room or by video call
• Closed One-on-One chat rooms with all participants available
• Closed Online VIP-club for C-suite
• Enlarged delegations from Latin America Oil & Gas companies
• ZOOM-cocktail party and other options for informal networking!

Forum highlights:

• Online One-on-One Meetings and Business Networking – connect with industry leaders while working from home.
• Online networking, virtual bar and zoom-cocktail party, online VIP-club for C-suite, and a lot more.
• Hotline with business experts: Ask your burning questions, call for advice, and share your experience during and after sessions.
• 400+ senior executives of growth and major Oil and Gas companies from Colombia and the rest of Latin America, investment projects, technological leaders, and industry experts
• Strategic plenary session and discussion: Colombia´s oil and gas industry revival. What are the most effective short-term and long-term anti-crisis and risk management strategies? What is the best strategy in the time of uncertainty and turbulence?
• Special focus: interactive parallel technical discussions – pose your burning questions about geological exploration, uncapping unconventional resources and monetizing oil and gas to your peers from Oil and Gas companies from Colombia and Latin America
• Innovation for Colombia´s Oil and Gas Industry: How to optimize costs and improve efficiency in current market situation?
• Case Studies. Success formulas and candid tips from industry leaders: productivity growth, optimization of production processes, and much more

A safe online platform: Stay connected with colleagues and experts from your home office

Among the regular participants: EcoPetrol, Biomax, ANH, Campetrol, CEPSA, Emerald Energy, ConocoPhillips, CleanEnergy Resources, Canacol, Trafigura, GranTierra Energy, TGI, InterOil, ProGasur, PromiGas, Equion, Hupecol, Mompos Oil, PDVSA, Refineria Sebastopol, Proma, Chevron, Repsol, Terpel, NGEC, Tenaris, MCDERMOTT, Frontera, Shell, Petrobras, Interoil, Garrido, AECOM, Montagas, ABC, CruzSur, Siemens, Wattle, Petro Colombia, Halliburton, Sacyr, Mansarovar, Spiecapag, Bridgemaster, Tracerco, TPC, IBM, Posneft, Honeywell, Tecpetrol and many more.

Organizing Committee:
Vostock Capital Team,
Tel:     +7 495 109 9 509
Fax:    +44 207 231 1600
Email: events@vostockcapital.com
Web:  https://colombiaoilandgas.co/

The conference call may be accessed by dial in or via webcast:

All remarks made during the conference call will be current at the time of the call and may not be updated to reflect subsequent material developments.

Fourth quarter and fiscal year 2019 financial results will be available through the Investor Relations section of the company’s website. A replay of the webcast will be available on our website until March 27, 2019. The transcript of the webcast will be posted on the website within five days after the call is completed.

Canacol is an exploration and production company with operations focused in Colombia. The Corporation’s common stock trades on the Toronto Stock Exchange, the OTCQX in the United States of America, and the Colombia Stock Exchange under ticker symbol CNE, CNNEF, and CNE.C, respectively.

Revised Canacol Promissory Note Terms

Arrow and Canacol have agreed to a third amendment and extension to the existing $5 million Canacol promissory note, effective December 31, 2019. Under terms of the amended note, repayment of the principal and accrued and outstanding interest, which now total $5.6 million, has been deferred an additional six months to commence on April 1, 2021 with the outstanding interest to be paid in full at that time and the principal to be fully paid in six monthly installments by September 1, 2021.

The amended note provides Arrow with additional flexibility to manage its long-dated payables while the strategic alternatives process progresses, with support from Arrow’s financial advisor, Stifel FirstEnergy.

Key terms under the Amended Note are as follows:

• On or before April 1, 2021 Arrow Exploration shall pay in full all accrued and outstanding interest owing on the principal sum of $5 million from the origination date of the promissory note to July 31, 2019 being $628,767 plus interest on such sum at a rate equal to 15.0% per annum accruing as of December 31, 2019 until the date of payment (the “Interim Accrued Interest”).
• Commencing September 1, 2019 and on the first day of each month thereafter until no further obligations are owing, Arrow Exploration shall make interest-only monthly payments equal to the total amount of the outstanding interest on the principal sum and the Interim Accrued Interest.
• Commencing April 1, 2021 and on the first day of each of the following six months thereafter Arrow Exploration shall make equal monthly payments of the balance of the Principal Sum which remains outstanding as of April 1, 2021, amortized over such six month period, such that all remaining obligations are paid in full on or before September 1, 2021.
• At any time, all or any portion of the obligations then outstanding, may be prepaid by Arrow Exploration to Canacol without penalty or prepayment fee.
• In case of a change in control of Arrow Exploration, all of the amended note obligations shall be immediately due and payable to Canacol. For purposes of the amended note, a change in control means:
  1. Any direct or indirect change in control of Arrow Exploration (whether through merger, sale of shares or other equity interest, or otherwise through a single transaction or series of related transactions, from one or more transferors to one or more transferee or
  2. Any change in the composition of the board of directors of Arrow Exploration where the majority of the current directors of Arrow Exploration are replaced (whether at the same time or separately) at any time within a time period of 12 months from December 31, 2019. Control means the ownership directly or indirectly of more than 50% of the voting rights in a legal entity.
• Until all Amended Note obligations are paid in full, Arrow Exploration shall arrange to appoint two Canacol employees of Canacol´s choice to sit on Arrow’s board of directors at all times. In the normal course such appointments are subject to approval of regulatory authorities including the TSX Venture Exchange.
• The general security agreement granted to Canacol as part of the second amendment to the Canacol promissory note in July 31, 2019 remains in place as updated to reflect linkage to this third amendment.
• Other terms of the original Canacol promissory note remain unchanged.

Appointment of New Director

Under terms of the Amended Note, Arrow has agreed to appoint Anthony Zaidi, VP Business Development and General Counsel at Canacol, to the board of directors of Arrow to fill an existing vacancy, subject to regulatory approvals. With this appointment, Canacol will have two of its executives on the Arrow Board of Directors also including Mr. Ravi Sharma, the Chief Operating Officer of Canacol and a founding director of Arrow. Dr. Luis Baena, a founding director of Arrow originally nominated by Canacol, is no longer an employee of Canacol. The Arrow Board of Directors will now include Mr. Dominic Dacosta (Chair), Dr. Luis Baena, Mr. James McFarland, Mr. Juan Carlos Salazar, Mr. Ravi Sharma, Mr. Steve Smith and Mr. Anthony Zaidi.

Mr. Zaidi is a lawyer and businessman with significant experience in corporate finance and in the mining and energy sector in Colombia. Prior to joining Canacol, Mr. Zaidi was the President and General Counsel of Carrao Energy Ltd., a private oil and gas exploration company he co-founded and co-managed until its acquisition by the Canacol in November 2011 and in turn by Arrow in September 2018. Prior to this time, he had been an officer or director of several private and public companies, including Integral Oil Services, Pacific Rubiales Energy, Petro Magdalena Energy, Medora Resources and others, as well as a securities lawyer at Blake, Cassels & Graydon LLP. Mr. Zaidi holds a Juris Doctor degree from the University of Toronto as well as a Bachelor of Commerce (Finance) degree from McGill University.

All dollar amounts: US Dollars

Third Quarter Financial and Operating Results

Arrow Exploration’s Financial Statements and MD&A are available on SEDAR (www.sedar.com). All numbers are expressed in US dollars unless otherwise noted.

^{(1) Non-IFRS Measures – see “Non-IFRS Measures” below
(2) Includes $5 million Canacol promissory note
(3) Long-term restricted cash not included in working capital}

Third Quarter 2019 Highlights and Subsequent Events

• For the three months ended September 30, 2019, Arrow recorded $6,320,471 in revenues (net of royalties) on crude oil sales of 151,313 barrels, 528 barrels of NGL’s and 55,037 Mcf of natural gas sales.
• Adjusted EBITDA for the three months ended September 30, 2019 was $1,993,407.
• Production averaged 1,799 boe/d, a decrease of 60 boe/d over the second quarter of 2019.
• Revenue (net of royalties) of $6.32 million represented a decrease of approximately $1.2 million over the previous quarter. Brent oil prices averaged $62.03 for the third quarter of 2019 which represented a reduction of more than $6 per barrel relative to the second quarter. Lower Brent oil prices in the third quarter compared to the second quarter had a negative impact on operating netbacks which were $21.68 per boe vs. $25.40 per boe, respectively.
• Operating costs were $2,828,585 or $17.56 per produced boe which represents a reduction of $376,552 (12%) versus the second quarter of 2019.
• Working Capital deficit of approximately $3.2 million does not include the $5 million promissory note to Canacol Energy Ltd. (“Canacol”) which was included in the Working Capital deficit calculation in the second quarter due to amending and extending the promissory note in July, 2019. Arrow Exploration’s net debt was calculated at $7,092,058 as of September 30, 2019 which is comprised of: Current Assets of $8,771,087, Accounts Payable and Accrued Liabilities of $11,935,993, Canacol promissory note of $5 million, and long-term receivables of $1,072,848.
• Subsequent to quarter end, Arrow announced that Mr. Bruce McDonald resigned as President, Chief Executive Officer and Director of Arrow Exploration. Mr. McDonald was entitled to severance payments totaling $485,000 that was paid subsequent to quarter end and will be reported in fourth quarter financial statements. Mr. Jack Scott, Chief Operating Officer of Arrow Exploration, was appointed interim President and CEO.

Jack Scott, Interim CEO commented, “I’m pleased to report a record quarter from the perspective of EBITDA and funds flow from operations at $1,993,407 and $1,500,573 respectively. These record operating results were achieved despite a reduction in Brent Oil pricing of more than $6 per barrel and average production being reduced by 60 boe/d relative to the second quarter. Record results were driven by our continued focus on reducing both operating and G&A costs throughout Arrow Exploration. Further cost reduction initiatives have been identified and will be implemented in future quarters in order to expand Arrow’s free cash flow, allowing Arrow Exploration to pay down debt.”

Strategic Alternatives Process

Arrow’s Board of Directors has formed a Special Committee to evaluate strategic alternatives for Arrow Exploration with a view to improving Arrow Exploration’s balance sheet, including addressing its working capital deficit, long-dated payables and upcoming debt maturity in October 2020, and maximizing enterprise value. The strategic alternatives process is intended to explore a comprehensive range of strategic alternatives including: a sale, merger or other business combination; a disposition of all or certain assets of Arrow Exploration; recapitalization and refinancing opportunities; sourcing new financing and equity capital; and other alternatives to maximize value. The committee has been given a mandate by the board to hire a strategic advisor(s) to support the evaluation of all potential alternatives. Arrow Exploration will provide additional information regarding the strategic alternatives process once such advisor(s) has been selected. There can be no guarantees as to whether the strategic alternatives process will result in a transaction or the terms or timing of any resulting transaction.

Arrow Exploration Corp. (operating in Colombia via a branch of its 100% owned subsidiary Carrao Energy S.A.) is a publicly-traded company with a portfolio of Colombian oil assets that are under-exploited, under-explored and offer high potential growth. Arrow Exploration’s business plan is to rapidly expand oil production from some of Colombia’s most active basins, including the Llanos, Middle Magdalena Valley (MMV) and Putumayo Basin. The asset base is predominantly operated with high working interests, and the Brent-linked light oil pricing exposure combines with low royalties to yield attractive potential operating margins. Arrow’s seasoned team is led by a hands-on and in-country executive team supported by an experienced board. Arrow is listed on the TSX Venture Exchange under the symbol “AXL”

A significant portion of Colombia’s propane is imported from the United States

Charle Gamba, President and CEO of Canacol Energy, commented: “Given the limited capacity of the gas pipeline infrastructure in Colombia, industrial, commercial, and residential consumers not located along existing pipeline routes currently use 145 MMscfpd (Millions of Cubic Feet of Gas Per Day) of compressed natural gas and propane that is transported long distances via truck as an energy source.  LNG can replace diesel, fuel oil, compressed gas, propane, and other fuels at a considerable reduction in price given the relatively lower cost of natural gas and the large volume of liquified gas that can be transported by truck.  Compressed natural gas for example costs three times more to transport than LNG, resulting in the potential for significant cost savings for consumers who switch to LNG.  With our joint venture partners Galileo providing the technology, our objective is to build other liquefaction terminals at other strategic sites in Colombia with the goal of replacing the use of diesel, fuel oil, compressed natural gas, propane, and other fuels with LNG at both lower cost to consumers and lower emission of pollutants.”

During the course of 2019 Canacol Energy installed four natural gas liquefaction modules purchased from Galileo at its main gas processing facility located at Jobó, Cordoba.  The modules are capable of converting 2.4 million standard cubic feet per day (“MMscfpd”) of gas into 29,000 gallons of LNG.  This LNG is being sold to a third party at the plant gate for distribution via trucks to their clients in Antioquia and Santander as far as 800 kilometers from Jobo.

65 MMscfpd of compressed natural gas and 80 MMscfpd of propane are currently consumed in Colombia, with a significant amount of the propane being imported from the United States.  The objective of the joint venture with Galileo is to install terminals in other parts of Colombia close to gas pipelines where Canacol can physically ship or swap its gas to be liquified, with the goal of replacing diesel, fuel oil, compressed natural gas, propane, and other fuels with lower cost and lower emission LNG.

Canacol wins three new gas exploration blocks

The company also announced that it won three new conventional gas exploration blocks in the recent bid round administered by Colombia’s Agencia Nacional de Hydrocarburos (ANH). Under its wholly owned subsidiary CNE Oil & Gas S.A.S., Canacol was awarded conventional exploration contract VIM 33 (155,310 acres, 62,852 hectares) in the Lower Magdalena Valley basin, and conventional exploration contracts VMM 45 (12,422 acres, 5,027 hectares) and VMM 49 (148,244 acres, 59,992 hectares) in the Middle Magdalena Valley basin. On a net acreage basis, these conventional exploration contracts increase Canacol’s land position for conventional natural gas in Colombia by 29 % from 1.1 mm net acres to 1.4 mm net acres.

Canacol is an exploration and production company with operations focused in Colombia.  Canacol Energy’s common stock trades on the Toronto Stock Exchange, the OTCQX in the United States of America, and the Colombia Stock Exchange under ticker symbol CNE, CNNEF, and CNE.C, respectively.

Above photo courtesy Canacol Energy

Diaz is said to bring broad experience in industrial and consumer sectors, both locally within Colombia and internationally. From 2004 -2011 he was President and CEO of Organizacion Corona, one of the largest private groups in Colombia. Prior to his association with Corona, he was with Monsanto Company in St. Louis, Missouri (1991-2003) where he held various executive positions among them President of the Global Food Ingredients Division, Corporate Vice President of Global Strategy, and Vice President and General Manager for Latin America in Buenos Aires, Argentina.

Michael Hibberd, Chairman of the Board of Directors for Canacol Energy Ltd., announced “We are very pleased to have
someone with as distinguished a track record as Francisco join Canacol’s board. He brings to Canacol not only a wide depth of experience covering a range of businesses and jurisdictions, but also superb in-country business, regulatory, and government relationships within Colombia.”
Mr. Diaz received a BSc in Chemical Engineering from Northeastern University in Boston, MA and has a Master of Science in Business Management from Arthur D. Little School of Management in Cambridge, MA. He is also a graduate of the Advanced Executive Management Program from J. L. Kellogg Graduate School of Management of Northwestern University.
Canacol Energy Ltd. is an exploration and production company with operations focused in Colombia and Ecuador. The
Corporation’s common stock trades on the Toronto Stock Exchange, the OTCQX in the United States of America, and the Colombia Stock Exchange under ticker symbol CNE, CNNEF, and CNE.C, respectively.

Photo of Canacol’s Capella Oil Field in Colombia is courtesy of Canacol Energy Ltd.