REG - Arrow Exploration - Arrow Announces Test Results of RCS-1 Well

Arrow ExplorationAnnouncement

27/06/2022 07:00

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RNS Number : 2081Q  Arrow Exploration Corp.  27 June 2022

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ARROW ANNOUNCES TEST RESULTS OF RCS-1 WELL

Ahead of expectation well test results, with additional zones identified

CALGARY, June 27, 2022 - Arrow Exploration Corp. (AIM: AXL; TSXV: AXL)
("Arrow" or the "Company") is delighted to announce the results of the Rio
Cravo Sur-1 ("RCS-1") well testing on the Tapir Block in the Llanos Basin of
Colombia.

The RCS-1 well was spud on May 23, 2022.  RCS-1 targeted a three-way fault
bounded structure with multiple high-quality reservoir objectives on the Tapir
Block in the Llanos Basin of Colombia. The well was drilled to a total
measured depth of 8,656 feet (8,105 feet true vertical depth) and encountered
six hydrocarbon bearing intervals totaling 55 net feet of oil pay.

Specific production test rates for the isolated new zones (shallowest to
deepest) include:

·    Carbonera C7B:  tested 1872 bopd (net 936 bopd) peak rate of 30 API
crude.

The zone was tested on June 22(nd) for 33 hours at an average rate of 1076
bopd (net 538 bopd).

·    Ubaque: tested 184 bopd (net 92 bopd) peak rate of 12-13 API crude.

The zone was tested June 13(th) for 38.5 hours at an average rate of 33 bopd
(net 16.5 bopd).

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

After the C7B test performance, the decision was made to put the C7B on
production.  Arrow decided not to test the up-hole C7 zones, and the Gacheta
C, as they had been proven to be oil bearing in RCE-2.  The test of the
Gacheta B zone was cut short due to formation water production.

Marshall Abbott, CEO of Arrow commented:

"We're encouraged by the material results of RCS-1, the third well on the
Tapir block. RCS-1 identified new zones for further exploitation with flowing
results returning better than expected."

"We're currently completing the C7B zone, targeting to be on stream this week.
This increases Arrow's production and reserves. The Company intends to bring
RCS-1 on slowly and increase production to best manage the oil reservoir."

"Arrow's current production is providing positive cashflow for the Company
during a high commodity price environment.  Continued strong production rates
from existing tied-in wells combined with the encouraging results from new
drills in Colombia  support the Company's objective of achieving a production
rate of 3,000 boe/d within 18 months of its AIM listing (completed in October
2021).  This is an exciting time for Arrow, and we look forward to providing
further updates on our progress."

The RCS-1 well costs came in under budget.

 

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 (Corporate)                                                            +44 (0)7711 627449
 Rupert Holdsworth Hunt (Broking)

 Camarco (Financial PR)
 James Crothers                                                                         +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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