Hello, and welcome to the annual general and special meeting of shareholders of Arrow Exploration Corp. Please note that today's meeting is being recorded. If you participate in today's meeting and disclose personal information, you will be deemed to consent to the recording, transfer, and use of same. If you disclose personal information of another person in today's meeting, you will be deemed to represent and warrant to Computershare and the corporation that you first obtained all required consents for the disclosure, recording, transfer, and use of such personal information from all appropriate persons before your disclosure. During the meeting, we will have a question- and- answer session. You can submit questions or comments at any time by clicking on the Q&A icon. It is now my pleasure to turn today's meeting over to Gage Jull. Chairman, the floor is yours.
Good morning, ladies and gentlemen. Thank you for joining us today for the annual meeting of shareholders of Arrow Exploration Corp. My name is Gage Jull. I am the Chair of the Board of the corporation, and it is my pleasure to chair this meeting. Attending the meeting with me are Marshall Abbott, a Director of the corporation and our Chief Executive Officer, and Joe McFarlane, Chief Financial Officer, and certain of our other directors, officers, and employees are attending either in person or remotely. I would like to thank you and acknowledge the contribution of all of the Arrow team over the past year. Before proceeding with the meeting, I note that this will be a hybrid meeting. Arrow is permitting its shareholders to participate in a virtual manner via a live audiocast, in addition to the meeting formally being held at the offices of Gowling WLG (Canada) LLP.
We note the following procedures for the ordinary conduct of the meeting. One, questions in respect of a motion can be submitted by any registered shareholder or duly appointed proxyholder using the instant messaging service of the virtual interface for the audiocast. Please note that there will be a slight delay in the publication of the communications received. In addition, Arrow will be providing all shareholders with an opportunity to ask questions regarding the company and its business following the formal portion of the meeting and management presentation. When asking a question regarding a motion, please indicate your name, which entity you represent, if any, and confirm that you are a registered shareholder and/or a duly appointed proxyholder. Three, questions will generally appear shortly after they are submitted but will only be addressed during the question period at the end of the meeting.
Although questions regarding procedural matters or directly related to the motions before the meeting may be addressed during the meeting. Four, for those attending the meeting by virtual audiocast, voting on all matters will be conducted by electronic ballot. For those attending the meeting in person, voting will be conducted by ballot. Registered shareholders and duly appointed proxyholders will be asked to vote on each of the business items after the presentation of all business items. Five, when you are asked to vote for those shareholders participating virtually, resolutions will be put forward for voting in the Vote tab. To vote, simply select your voting direction from the options shown. Be sure to vote on all resolutions using the numbered link if one appears with the Vote tab. Your vote has been cast when the check mark appears. If you have already voted, there is no need to vote again.
If you choose to vote again during the meeting, this will override your previous vote. Other instructions and audiocast access information were provided in Arrow's Notice of Meeting and Management Information Circular dated August 6, 2026. Number two, calling the meeting to order. I now propose to proceed with the formal part of the meeting. Those present in person and virtually via audiocast are reminded that only registered shareholders and their duly appointed proxyholders are entitled to participate in the formal part of the meeting. After the formal part of the meeting, Mr. Abbott will be providing a presentation regarding the corporation's business and will take any question after that. I now call the meeting to order. I will ask [John Hunter] to act as secretary of the meeting, and with the consent of the meeting, I appoint representatives of Computershare Trust Company of Canada to act as scrutineers.
Notice of this annual and special meeting of shareholders of Arrow Exploration Corp. was sent to all shareholders of record as of the close of business on August 4, 2026. The notice of annual and special meeting is available on SEDAR+ and Arrow's website. I direct that proof of mailing of the notice and the other documents sent to the shareholders as well as proof of filing of the notice be kept with the minutes of this meeting. Those shareholders and proxyholders attending the meeting virtually via the audiocast will vote by completing an online ballot. Once again, registered shareholders and duly appointed proxyholders will be asked to vote on each business item after the presentation of all business items. All votes will be conducted by ballot.
The scrutineers will count all of the ballots, and we will publish the results of the voting on each matter after the meeting concludes. Quorum. The secretary has confirmed that a quorum of shareholders is present, either represented in person or by proxy. I now declare that this meeting is to be duly called and properly constituted for the transaction of business. Item five, presentation of financial statements. The first item of business is to receive the audited consolidated financial statements of the corporation for the year ended December 31st, 2025, which have been approved by the Board of Directors, and together with the auditor's report thereon, have been sent to the registered shareholders and supplemental mailing list, and it is not proposed to read them to the meeting. Additional copies of the financial statements are available upon request or can be accessed online in the company's portal.
No action is required to be taken by the shareholders on these financial statements. I now declare that the audited consolidated financial statements of Arrow Exploration Corp. for the fiscal year ended December 31st, 2025, and the auditor's report thereon have been received by the shareholders as submitted to this meeting. Item six, fix the number of directors. The second item of business is to approve and adopt an ordinary resolution to fix the number of directors to be elected at the meeting at five members. I will now ask someone to make a motion in this regard.
Mr. Chairman, I so move.
Thank you, Joe.
I second the motion.
Thank you, Marshall. Is there any discussion of the motion? Hearing no discussion, I will move on to the next item of business. Seven, election of directors. It is now in order to proceed with the election of directors. In accordance with our articles and bylaws, the Board of Directors has determined that the Board shall consist of five members this year. The names of those persons who have been nominated for election as directors of Arrow Exploration Corp. until the date of the next annual meeting of shareholders, or until their successors are elected or appointed, are myself, Gage Jull, G. Marshall Abbott, Grant M. Carnie, Ian Langley, and Ravi Sharma. I will now entertain a motion nominating these persons as directors of the corporation for the ensuing year.
I move that G. Marshall Abbott, Grant M. Carnie, Gage Jull, Ian Langley, and Ravi Sharma be elected as directors of the corporation to hold office until the close of business of the next annual meeting of shareholders, or until their successors are duly elected or appointed.
Thank you, Joe.
I second the motion.
Thank you, Marshall. As voting on the election of the nominees will occur together with the other matters, I will now move on to the next item of business. Number eight, appointment of auditors. The next item of business is the appointment of auditors. May I now have a motion to appoint Ernst & Young LLP as auditors of the corporation until the close of the next annual meeting of shareholders, at such remuneration as may be fixed by the Board of Directors, and that the directors be, and are hereby authorized to fix such remuneration.
Mr. Chairman, I so move.
Thank you, Joe.
I second the motion.
Thank you, Marshall. Is there any discussion of the motion? There being no discussion, I will move on to the next item of business. Number nine, approval of the amended and restated stock option plan. The next item of business is the approval of an ordinary resolution approving the corporation's amended and restated stock option plan. Shareholders are asked to consider, and if thought fit, to approve, with or without variation, an ordinary resolution approving the corporation's amended and restated stock option plan. The full text of the resolution is set out on page 14 of the corporation's Management Information Circular. May I now have a motion to approve the corporation's amended and restated stock option plan as set out on page 14 of the corporation's Management Information Circular?
Mr. Chairman, I so move.
Thank you, Joe.
I second the motion.
Thank you, Marshall. Is there any discussion of the motion? There being no discussion, we will now move on to vote on the matters today. Number 10, opening the polls. As mentioned earlier, voting for all of the matters before the meeting today will be conducted by ballot. I will now take a moment to ask that the balloting be open to registered holders and appointed proxyholders. I will once again ask the operator to provide instructions on voting through the electronic platform.
The polls are now open. At this point, all registered shareholders and duly appointed proxyholders attending by virtual audiocast, who have properly logged in with their control numbers or username and wish to vote, will be able to see on the screen all motions being brought forth at this meeting. Please register your votes by accessing the Voting tab and selecting your voting direction from the options shown. We will provide registered shareholders and duly appointed proxyholders approximately one more minute to complete the ballots. Once the electronic balloting closes, the voting page will disappear, and your votes will automatically be submitted. I would ask that the scrutineers compile the report regarding the results of voting on all business matters.
Are we closing the polls now?
Yes. You can move on to the next.
I've been advised that the polls are now closed and the votes are completed, and I have the voting results in my hot little hands. I've been advised by the scrutineers that based on the proxies deposited for the meeting, all resolutions have passed, and final voting results and percentages will be published on SEDAR+. The number of directors to be elected at the meeting was fixed at five. Each of the five nominees have been elected as directors of the company, and all nominees received more for votes than withheld votes. The appointment of Ernst & Young LLP as auditors of the company has been approved, and Arrow's amended and restated option plan has been approved. I therefore declare that all these motions have been carried, and direct that the results of the poll be included with the minutes of this meeting. Termination of the meeting.
The formal items of business, as set out in the notice of meeting, have now been dealt with. As there is no further business to come before this meeting, I declare the formal part of the meeting to be concluded. Thank you for attending. I will now turn the meeting over to Mr. Marshall Abbott to provide a presentation regarding the business and answer any questions you may have. I would like to add a parenthetical comment that the company is exceptionally healthy with a very strong balance sheet. This is largely due to the drilling success and careful management of the management team. Yes, the commodity prices have helped. I want to thank the Arrow board and the entire Arrow team for their exceptionally hard work in this very challenging and very opportune environment.
I ask that all shareholders who would like to ask a question use the instant messaging feature of the audiocast interface to do so. We will answer as many questions as time permits. When asking your question, please state your name, the entity you represent, if any. For each question we answer, we will summarize the question and read out loud the name of the person who has asked such question, and if applicable, the entity such person represents. Thank you very much. Oh, sorry. Now over to you, Marsh.
Thank you, Mr. Chairman. I will walk you through another involved Arrow Exploration presentation here. I will be as expeditious as feasible. I certainly invite any questions as we go. Arrow has been on the track of success for the last four years. We have drilled five discoveries on Tapir Block , which resulted in 50 wells being spawned off those discoveries. To give you a sense of the value of the drilling that we have done at Icaco, RCE, Carrizales Norte, and now the [inaudible] in the Llanos. Coupled with that, we have spent $6 million on 215 sq km of 3D seismic. Which is absolutely essential in pursuing the play type that has become the play type of today in the Llanos Basin geological. We are also multi-zone exploiters. For the most part, when we drill wells down to 10,000 ft, we can encounter up to five separate hydrocarbon-bearing zones.
We will give you the sense of how prolific each one of those zones are as we proceed. As we sit right now, every well that we have got is producing out of one zone only, and we have made applications to the regulators in Colombia. Commingle production in the wellbore out of two or more reservoirs capable of hydrocarbon production. That is with the regulator. It is not uncommon. We are hopeful that we could get permission within the next couple of weeks. We have been very active in the Llanos Basin, and we have drilled 10% of all wells in Colombia in 2024 outside of Ecopetrol wells. As well, we have been well-noted that we have drilled the longest horizontal leg ever drilled onshore Colombia, which we are really using Canadian expertise and transferring that down into onshore. We have employed over 5,000 local community members. We are very active in the community, as one would expect.
We have multiple environmental initiatives with strong HS&E focus. These photographs give you a sense of how good the pads are. Each one of the discoveries is on its own separate pad. In any given pad, you could have up to 100 people, where we've got drilling operations, production operations, and a very large camp. And the camp casino or the cook shack makes 400 meals a day for the staff on those. The market cap as of September 14th, $145 million U.S., 6,000+ bpd , and that's growing. 21 million barrels 2P reserves. Our netback at Brent $87 or $52/bbl . Joe is sitting on over $21 million of cash as of September 1. We've got a revenue net of growth instead of declining. The company is in great shape.
Get a sense for the individual contribution of each one of the fields that we've got. We'll talk more about each one of these individually. Quick snapshot of how the company's share price has performed. Certainly, the leading edge of the Brent price is as well. We're in the right place at the right time. The wells that we drill on any one of these pads is, from a vertical well perspective, has the ability to pay out in two to three months. The reserve perspective, we've had some success this year, not only from the drilling perspective, but also from A&D activity. Notably, the Thorsby acquisition in Central Alberta. And I'll talk more about that in detail, but these numbers are very impressive. We're proud of it. Our F&D costs are very low compared to our peers in Latin America, Western Hemisphere.
This gives you a sense of the individual well performance that we have in every well we've drilled. Give you a sense for how quickly. Next. Here we go. This gives you a sense of the decline profile that you're hit with in almost every one of these reservoirs. The oil comes up very fast, an excellent reservoir drive from rainwater recharge out of the Andes, so that aquifer is very strong. That aquifer allows us to book upwards of 40% of the oil on site. We've got a very solid platform of production where the heavy declines have already happened. We'll see that for the wells that we've drilled recently, including the Icaco spread. I'll give you a sense for how we think that is a much bigger accumulation than [inaudible] . Spend versus rent back, very healthy. Operating costs are within reasonable grounds.
We're doing whatever we can to reduce operating costs, which is a ticket item. But from a revenue perspective, we're in great shape. $80 crude, we're netting $55/ bbl. Here's a snapshot of some of the Carrizales Norte wells that we've drilled. Initially, vertical wells defined the area's expansive. In fact, it's much bigger than we had initially envisioned. Then we went off into drilling horizontally. Each one of these wells, from the cumulative oil perspective, are massive wells. And keep in mind, these are conventional reservoirs. We're not having to frack any of these. We drill, spud, and put in a pump. We're getting really good at it. We're probably one of the cheapest operators on onshore Colombia for reservoirs of this size, and we're exceeding 500% IRR. I don't care which jurisdiction you're in, this is top [percentile] of 5%. Here's the RCE pad.
Give a sense for how busy it is. This is like the camp casino, it is called. I always get choked. That is what they call the camp facilities in Colombia. We have drilling operations, obviously. We have a 1,500 hp rig that we have kept busy the last four years. Then we have production operations ongoing. Busy, careful, pay attention to safety and health, of course. We are good operators. Here is a snapshot of the Llanos Basin in Colombia. Get a sense of the terrain that we are dealing with. It is really in the prairies of Colombia, east of the Andes. It is the heart of oil production onshore Colombia . The basin itself is about 600,000 bpd . The national oil company, Ecopetrol, is under 800,000 bbl. It gives you a sense of hydrocarbon density within the Llanos.
If you get a sense for this is a Llanos block summary. Individual operators filling up their blocks. Any place you do not see color is open. There have been no bid rounds in Colombia since the leftist government came in place four years ago. Of course, they are gone now, and we are going to see, I think, a lot of activity occurring on the blocks in and around the Llanos Basin. I think in Bogotá, there are no secrets. People are certainly aware of the success we have had in Bogotá. They are looking to replicate that success. Originally, the Tapir Block itself was viewed as uneconomic. Tapir Block, 100 sq mi in size. The tectonic regime in Colombia is southwest-northeast. The play of the day was drilling up against a fault, get three-way closure against that fault, and it is going to be oil with oil bearing 90%.
The nice thing about the block we have is this is at 90 degrees to the prevailing trend. We actually intersect upwards of six to eight faults throughout the whole Tapir Block, which is where we have had our success. Here is the block again, showing the discoveries that we have had on the left. Capullo, RCE. Here, down at Icaco, which we will talk about these in a little more detail as we proceed. All trends are well-defined by excellent seismic programs with Vibroseis. We are the first guys onshore Colombia to use Vibroseis, which is surprising, because that is indicative of how far behind Colombia onshore is compared to the Canadians. We are pretty proud of that. Again, this is the RCE platform, how big it is and the size of the rig we have got. The service company infrastructure is somewhat stretched. There has been very little reinvestment into services in this country.
We are seeing that improve now, of course, with oil prices doing what they are doing. Let us go into the Icaco discovery. I will not labor each one of the discoveries we have made, but we are talking about [inaudible]. From a seismic perspective, this is what we look for, down around 10,000 ft down here. Here is a fault trace, secondary fault trace, and you can see this broad structural high at reservoir level. When we look at the discovery well, Icaco 1, we did not really know what the area of extent perspective that we expected to exploit. From an oil water perspective, this is the closing contour, which shows quite a bit of drill hole room, effective of casing one of these reservoirs. At the very top of the stack, at about 9,500 ft, we have Carbonera C7, very prolific.
In fact, it surprised us at the flow rates that we are getting, filling that. Then we have the Guadalupe, which is very prolific as well. Gacheta, then we get down to the main body of the Ubaque reservoir, containing upwards of 90 ft in that pay. Quite a bit of exploitation being done onshore at Icaco. This is the Ubaque map showing the same thing, the closing contour. That is everything in between oil pay. We drilled two very successful horizontal wells. We converted one of them to a water disposal well. As I mentioned, water is your friend and your enemy. We have to be able to put away upwards of 130,000 bbl of water. We have got a pretty good ask. The base we are seeing, the block boundary.
I will tell you all in secret that as we proceed south of the block boundary, this accumulation extends quite a way to the south. One of the first things we will do is apply to the national regulator for that block to come up a bit. We will have the upper hand because we have got 3D seismic over well control. That is something we would look to pursue aggressively as we proceed. We will talk more about the extension application as well, as we proceed with the rest. The Carbonera C7 development plan. Here is the closing fault. Here is the block boundary. Here are the wells up we drilled in black. Development wells. We have got upwards of 12 development wells that are drilled into C7. It is kind of a 300-meter interval of depth. The reservoir management is prudent. Good operators, we know how to not slate the reservoir.
We think that that oil water contact has quite a bit of area of extent to the play. Flow rates we are enjoying are a fact that we are used to. Oil has come on upwards of 1,500 bpd gross. We are at 50% with our operator's share. Mateguafa Attic discovery, a very similar scenario. We were tying ourselves up with two wells that were drilled in the 1990s. 3D seismic data. Same increase of about 600,000 bbl. But we knew there was area of extent to this play. The 3D showed us this closing fault. We had a closing contour up against that fault. You see those wells that we have drilled in black, the wells that we are going to drill in white. Quite a bit of exploitation potential. This is just at the C7. We are pretty proud of the success we have had at Mateguafa Attic.
From a development program, this is the Guadalupe map. Very similar as a closing contour. This is again, indicative of multiple zone potentials that we see in every one of the wells we drill. Drilling horizontals very successfully. There are more to drill. This is a sensory tool that allows us to stay in reservoir. This is a gamma ray detector, and this is a resistivity detector. Red is the best level. We are in zone 95% of the time in the Guadalupe. This is where we drilled the longest horizontal to date at Carbonera. Geological perspective, I will not belabor this particular technical cross-section, but here is the main sand body. Guadalupe is C9, quite thick, upwards of 70 ft thick. Part of it was stressed up, as we can see.
All of those wells have pay to base, 100% pay to base, which allows you to be a little more aggressive on the productivity end. [inaudible] field is uptrend on the Tapir Block . Same sort of morphology, two-way closure up against the fault. Again, you can see how busy we are. On any given day, there's 100 people on lease. This is Alberta. That's 12-15 people constantly. We're pretty proud of the amount of local talent that we employ in Colombia, upwards of 5,000 people so far. As I mentioned, three-way closure up against the fault. One, two, three, four, five separate reservoirs producing. You can see the fault trace, see the structural gain we gain up against that fault trace. That's the three-way closure that we look for. Tried and true. Our guys are getting very good at it.
We are typically within 25 ft of the target drill. Carrizales Norte, very surprising discovery, but you can see as well the landscape that we enjoy drilling in. This road extends all the way down to RCE. In fact, we have one single road that goes to every one of the blocks. From the perspective of fiscal transfer, we sell our crude right at the wellhead, and BP brings in their trucks and truck all our crude. They have crude Panama, and that ultimately goes to Switzerland as tax efficient. There's very little transportation risk we have to take. Horizontal program, again, a very good sensory tool of tracking us. We hit a couple of faults that go into these horizontals, but these are 300-meter inter- wells. The wells are still performing well ahead of exploitation. We're proud of that discovery.
Really put the company on a separate foot. C7 potential at Carrizales Norte. Not quite as prolific as we enjoy down in Icaco, but still, these wells come on at 320 bpd net to us. It's light crude. We get a quality differential as well, as you can see. Interestingly, this is a fault trace, so this is structurally higher on the west side of the fault. On the east side of the fault, we're even seeing some wells that drill through there that [exhibit A]. From a development well potential, there's quite a bit of room at Carrizales Norte, not only on the proper side of the fault, but potentially on the down throw. That's something we would test later in [inaudible]. RCE field's a little closer to the [inaudible] . Again, you get a sense for how busy these pads are.
This is one without the drilling rigs on it, but we do have additional cellars. These are the concrete boxes that we use to set each individual well on. That well has finished drilling. These get their rig 25 m on rails. Again, our mobilization costs are quite higher in comparison. RCE development, similar story. We've been a little more aggressive in drilling this up, as you can see with the pad. Got additional wells we can drill to the north. Those are the contours. There's quite a bit of area we get to display as well. We intend to drill these wells in C7 and these wells in Gacheta, again, outlining the multi-zone potential in the [inaudible] space. Once again, we've had discoveries at [inaudible], at Mateguafa, at Capullo, at [inaudible] , at RCE, and Icaco. Those have strong [inaudible] development as well.
A bit of a different prospect that we will drill later next year is the Oxbow prospect. What we are looking at here is not only a seismic profile side, but also that is a section of the figure looking down at a map. We can see this very strong channel trend with a direct hydrocarbon indicator. We think bright spot technology has the cheapest [inaudible] from then that we have been using in Canada for 30 years. It is an exciting prospect for us that we can actually drill to from the existing pad on the first. That gives you a sense for some of the variability that we enjoy on the reservoirs in the [inaudible] space. A low-risk exploitation shot. Again, up against the fault. Not seeing the closure that we really enjoy, but this is something a little higher risk.
This is the proven limit of the Ubaque reservoirs. As part of that, Ubaque and everything south of that, the Ubaque is gone. We look to this as being more of a stratigraphic trap, potentially having much higher reserve capture, but with greater risk. Macoya is an extension of the Icaco discovery. With Icaco, if you are looking at this map, we are just off to the southwest. This is an extension of that fault block. This is a well, again, that we would drill in probably [third quarter]. A little higher risk, but it has got some morphology that we like to see, get a sense for structure we enjoy against that fault. When you look at the regional seismic line, the faulting is quite basic. It is thrust faults, and it happens as a trapping mechanism. We drill through a thrust fault or two on a couple of our wells.
Do lose a little more money than we would like to, but we are able to get around that by getting pretty good at remedial action wells that we are current. Caporal Sur , very similar. Upstream, structural high, potentially stratigraphic. This just gives you an idea of the prospect inventory that we are enjoying. Water disposal capacity, as mentioned. This is very important. We are putting away over 100,000 bbl today of fresh water. Some of that we use in a purification directly offsetting the lease. This water is fresh, it is less than 200 parts per million, and most of it is injected or disposed of in reservoirs as wastewater. Joe is going to walk you through financial resources. Go ahead, Joe.
I think Marshall already mentioned September 1st, we had about $22 million in the bank. That is after the Thorsby acquisition, cost us about $9 million In addition to that, we have a prepayment facility with BP. It was $20 million for year number one and $15 million for year number two. That has now been updated, so it is $20 million for year number two as well. That $20 million can be used for acquisitions. It can be used for exploration. It can really be used for anything in Canada or Colombia. It works very similar to reserve-based lending. Of course, with the extension that we will talk about, we look forward to also extending this prepay agreement.
What we've attempted to display here is the scope and repeatability for reservoir [inaudible]. We've had five bearing material discoveries that have spawned 50 development wells. We're having some fun on the Tapir Block that has been largely overlooked by industry. Let's jump over to Thorsby. Here we are in West Central Alberta. This is on the south side of the city of Edmonton. This is highlighting a spacious reservoir called the Sparky Sand. Talk more about that technically. This is the erosion limit of the Sparky Sand, but it has a very similar morphology to what we've enjoyed on onshore Colombia on the Tapir Block. We've got closure of the sand up against erosion limits. Again, the same sort of morphology. What we're seeing here is Sparky reservoir, some of the wells have been drilled horizontally into Sparky.
I mapped my first Sparky reservoir, 1980 as a summer student. I've got some experience with its ability to perform. This is a drilling, the number of wells that we can drill in the Sparky. It's a sandstone reservoir, relatively low permeability that we do have to frack. We'll be drilling each one of these wells. We will add upwards of 30 separate horizontal wells, drilled 2-mile lateral lengths. It's been proven up to the north end. We expect to do the south end as well. It may extend even further to the southwest. We're pretty proud of the acquisition. Reserve capture is fabulous, very accretive to the shareholders. We're proud of that. Intend to get it up to this probably first quarter [inaudible]. This is a quick snapshot on the optionality we have at Thorsby.
We could proceed drilling these three wells at relatively conservatively getting this up to 3,000 bpd at its peak and enjoying the declines as indicated. Or we could get after it, dedicate a rig and drill 21 wells and get this thing up to 4,000 bpd . Quite a bit of optionality here that we can pursue. The oil comes up fast. These wells can come on at about 500 [inaudible] each. That's a quick technical shot, and I'm going to let Joe now walk you through the primary perspectives that we are looking at in getting an extension on Tapir Block . Go ahead.
Thanks. For quite a while we've been talking with Ecopetrol, who would be able to grant us the extension on the Tapir Block. Discussions have gone very well. They've said that they want us to continue running this block. There's two five-year extension periods in our current contract, that we're working on. It is a negotiation right now. The negotiation is centering around what sort of capital commitment we're willing to give. How many exploration wells, how many development wells, how many workovers we're going to do. Really, what is the capital funding that's going to go into that and jobs that we'll be giving to the community. As well, there'll probably be an increase in royalty. I would call it a minor increase in royalty. But those seem to be the two points that we're discussing right now.
One of the concerns is that Ecopetrol. Obviously, we have a new president in Colombia, and Ecopetrol is going through a little bit of a change. There will be a new president named for Ecopetrol in the next 10 days. That new president will probably come in with the new vice president as well. But the people who are looking at this, the legal departments, the technical departments, G&G, engineering, communities, those people, they will be staying. They are the people that we have been working with, and they will be the people making a recommendation to the VP and the president. We might see a little bit of a delay as the president and new VP are put in place. But besides that, the discussions are going very, very well.
Thanks, Joe. That little Arrow is growing. To date, we have spent, in onshore Colombia, $240 million net. We are exactly the kind of company you are welcome to own. So far, we have enjoyed that experience. We are very optimistic we are going to get Tapir Block extended. There is still quite a bit to do on the front end. With that and the other opportunities we are looking at. We have a dedicated A&D team looking at position opportunities. I think we are pretty good at it, and that has been witnessed by the Thorsby acquisition. We have very actively looked at over 62 opportunities in the last 12 months. We are very active. We are choosing and we are picky. We are good at it. Thanks for your attention.
Thanks, Joe.
Any questions?
I'm just looking on the line, Gage, and there's been no questions from the audience online.
All right. Well, that being the case, operator, I think we can terminate. Thank you very much for attending the meeting today. We're going to be here for a few minutes, so if anyone has any questions or wants to throw a dead cat or two, we're here.