REG - Arrow Exploration - ARROW ANNOUNCES RCE-5 RESULTS & OPERATIONS UPDATE

Arrow ExplorationAnnouncement

14/04/2023 07:00

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RNS Number : 1884W  Arrow Exploration Corp.  14 April 2023

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ARROW ANNOUNCES RCE-5 RESULTS AND OPERATIONS UPDATE

RCE-5 now on production

CALGARY, April 14, 2023 - Arrow Exploration Corp. (AIM: AXL; TSXV: AXL)
("Arrow" or the "Company") is pleased to provide an update on the drilling
activity at Rio Cravo Este ("RCE") on the Tapir Block in the Llanos Basin of
Colombia and is providing an operations update.

RCE-5

 

The RCE-5 well was spud on March 19, 2023, and reached target depth on March
29, 2023. RCE‑5 was the sixth well drilled into the RCE field and results
from this well have further confirmed the high potential of the field. The
well was drilled to a total measured depth of 10,200 feet (8,100 feet true
vertical depth) and encountered six hydrocarbon bearing intervals totaling 90
net feet (measured depth) of oil pay.

The well was completed in the upper part of the Carbonera C7 formation. A
submersible pump has been inserted. The well is being choked back and it is
flowing with a 27/168 choke. In the last 24 hours, although it is still
unloading the completion fluid, it has produced at a rate of 680 BOPD gross
(340 BOPD net) of oil at 28.9 API and with a 12% water cut. The Company will
provide further updates on production rates in due course.

Initial production results are not necessarily indicative of long-term
performance or ultimate recovery.

Operations Update

 

RCE-4

 

The RCE-4 well is flowing at 944 BOPD gross (487 BOPD net) while being choked
back currently with a 24/128 choke.  Water cut is now at 0%.

RCE-3

The RCE-3 well is producing at 852 BOPD gross (426 BOPD net) with a 25/128
choke. Water cut is less than expected at 15%.

 

 

Carrizales Norte

The 1500 HP drilling rig is being moved from the pad at RCE to the Carrizales
Norte (CN) prospect. CN is located on trend with the highly productive
Carrizales oil field. With success at this location an additional two wells
may be drilled.

Capella Field

 

The Capella field continues to be shut in and discussions between the
government, protesters and the operator are ongoing. The Company hopes for a
quick resolution of the protesters' concerns. Further updates will be given
once the field is back on production.

 

Tapir 3D Seismic Program

 

The Tapir 3D seismic acquisition program was completed on April 10, 2023.
Management expects that a final processed data set will be available within
four to six weeks.

 

Corporate Update

 

Current corporate production with the Capella field shut in is approximately
2,635 BOPD. With the Capella field at full production, we estimate an
additional 300 BOPD would be added to corporate production for a total of
2,935 BOPD.  The Company expects production numbers will improve once the
RCE-5 well has reached equilibrium.  On April 1, 2023, the Company's cash
balance was US$12.1 million.

 

Marshall Abbott, CEO of Arrow commented:

"Initial production from the RCE-5 well has exceeded expectations. In addition
to the thick pay zones encountered on the Carbonera C7 formation, additional
pay zones currently behind pipe may provide further opportunities for
production and reserve increases. Drilling and completion costs came in on
budget and within the time frame expected."

"The RCE-4 and RCE-3 wells are currently producing better than expected and
the Company is choking the wells back in an effort to manage the reservoir and
discourage premature water production. Arrow has engaged the pumps on RCE-3
and RCE-4 and is slowly increasing production as the wells are more stable."

"Arrow is now moving the rig to the Carrizales Norte pad to begin drilling the
CN-1 well towards the end of April. This is an exciting time for Arrow, and we
look forward to providing further updates on our progress."

 

 

 

 

 

 

For further Information, contact:

 Arrow Exploration
 Marshall Abbott, CEO                                                                   +1 403 651 5995
 Joe McFarlane, CFO                                                                     +1 403 818 1033

 Brookline Public Relations, Inc.

 Shauna MacDonald                                                                       +1 403 538 5645

 Canaccord Genuity (Nominated Advisor and Joint Broker)
 Henry Fitzgerald-O'Connor                                                              +44 (0)20 7523 8000

 James Asensio

 Gordon Hamilton

 Auctus Advisors (Joint Broker)
 Jonathan Wright                                                                        +44 (0)7711 627449
 Rupert Holdsworth Hunt

 Camarco (Financial PR)
 Georgia Edmonds                                                                        +44 (0)20 3781 8331
 Rebecca Waterworth
 Billy Clegg

About Arrow Exploration Corp.

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 premier Colombian oil assets that are underexploited, under-explored and
offer high potential growth. The Company's business plan is to 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 50% interest in the Tapir Block is contingent on
the assignment by Ecopetrol SA of such interest to Arrow. Arrow's seasoned
team is led by a hands-on executive team supported by an experienced board.
Arrow is listed on the AIM market of the London Stock Exchange and on TSX
Venture Exchange under the symbol "AXL".

 

Forward-looking Statements

This news release contains certain statements or disclosures relating to Arrow
that are based on the expectations of its management as well as assumptions
made by and information currently available to Arrow which may constitute
forward-looking statements or information ("forward-looking statements") under
applicable securities laws. All such statements and disclosures, other than
those of historical fact, which address activities, events, outcomes, results
or developments that Arrow anticipates or expects may, could or will occur in
the future (in whole or in part) should be considered forward-looking
statements. In some cases, forward-looking statements can be identified by the
use of the words "continue", "expect", "opportunity", "plan", "potential" and
"will" and similar expressions. The forward-looking statements contained in
this news release reflect several material factors and expectations and
assumptions of Arrow, including without limitation, Arrow's evaluation of the
impacts of COVID-19, the potential of Arrow's Colombian and/or Canadian assets
(or any of them individually), the prices of oil and/or natural gas, and
Arrow's business plan to expand oil and gas production and achieve attractive
potential operating margins. Arrow believes the expectations and assumptions
reflected in the forward-looking statements are reasonable at this time, but
no assurance can be given that these factors, expectations, and assumptions
will prove to be correct.

The forward-looking statements included in this news release are not
guarantees of future performance and should not be unduly relied upon. Such
forward-looking statements involve known and unknown risks, uncertainties and
other factors that may cause actual results or events to differ materially
from those anticipated in such forward-looking statements. The forward-looking
statements contained in this news release are made as of the date hereof and
the Company undertakes no obligations to update publicly or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise, unless so required by applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.

Glossary

API:        A specific gravity
(https://glossary.oilfield.slb.com/en/terms/s/specific_gravity)  scale
developed by the American Petroleum Institute (API
(https://glossary.oilfield.slb.com/en/terms/a/api) ) for measuring the
relative density of various petroleum liquids, expressed in degrees.

Bopd:    barrels of oil per day

boe/d:  barrels of oil equivalent per day

Qualified Person's Statement

The technical information contained in this announcement has been reviewed and
approved by Grant Carnie, senior non-executive director of Arrow Exploration
Corp. Mr. Carnie is a member of the Canadian Society of Petroleum Engineers,
holds a B.Sc. in Geology from the University of Alberta and has over 35 years'
experience in the oil and gas industry.

This Announcement contains inside information for the purposes of the UK
version of the market abuse regulation (EU No. 596/2014) as it forms part of
United Kingdom domestic law by virtue of the European Union (Withdrawal) Act
2018 ("UK MAR").

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