Asked about the political concerns in Columbia...
Hi XXXXX
The result of the Colombia election is not surprising. Petro has been leading in the polls for the last few months.
Although Petro’s original stance was anti oil and gas industry, it seems that he has softened that stance significantly as the election progressed. He has spoken out against fracing in Colombia. None of Arrow’s plays in Colombia require frac programs.
Earlier in the election Petro said he will not allow new grants of blocks to oil and gas companies. Arrow currently has a tremendous land position and has no plans to bid on new blocks in Colombia.
Oil and gas are still the number one exports for Colombia. Petro’s plan to implement new social programs will require significant funding.
There is also significant Congress and legislative protection of the oil and gas industry in Colombia that will make it difficult for Petro to put in any significant changes immediately.
Arrow is moving forward with the development of its oil and gas assets in Colombia and does not anticipate any material changes in our interactions with Ecopetrol and the ANH or other government regulators.
As you mention below, Arrow does have a significant land position in the Montney play in Canada. Our plans are to further develop the East Pepper well in Q3, 2022. If Colombia materially changes its stance on working with oil and gas companies in Colombia, Arrow could move its focus to our current Canadian assets.
We plan to keep investors aware of changes taking place in Colombia. Our July investor presentation (available soon on the Arrow website) will have a page outlining the current Colombian government position. Please let me know if you have any other questions or concerns.
Thanks