REG - Arrow Exploration - Arrow Announces Update on AB Wells

Arrow ExplorationAnnouncement

05/02/2025 07:00

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RNS Number : 9237V  Arrow Exploration Corp.  05 February 2025

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ARROW ANNOUNCES UPDATE ON AB WELLS

AB-3 now on production

CALGARY, February 5, 2025 - Arrow Exploration Corp. (AIM: AXL; TSXV: AXL)
("Arrow" or the "Company"), the high-growth operator with a portfolio of
assets across key Colombian hydrocarbon basins, is pleased to provide an
update on the operational activity at the Alberta Llanos field on the Tapir
Block in the Llanos Basin of Colombia where Arrow holds a 50 percent
beneficial interest.

AB-1

The AB-1 vertical well has resumed production after a weeklong shut in period
for exploratory wells, which is in adherence with Colombia regulations. The
well is currently producing from the Ubaque reservoir at a rate of 260 BOPD
gross (130 BOPD net) of 13.6° API oil with an 80% water cut.  The AB-1 well
is expected to pay out in 10 months.

AB-2

The AB-2 vertical well was spud on December 25, 2024, and reached target depth
on January 1, 2025. AB-2 was the second well drilled into the extreme northern
limit of the Alberta Llanos field. The well was drilled to a total measured
depth of 10,795 MD feet (8,846 feet true vertical depth) and encountered
multiple hydrocarbon-bearing intervals.

On January 10, Arrow put the AB-2 well on production in the Carbonera
formation which has approximately 18 feet of clean sandstone exhibiting an
average porosity of 25% with high resistivities. The well came in structurally
lower than prognosis and produced sub-economic oil rates and accordingly the
well has been temporarily shut in. The Company is reviewing alternatives for
this well, such as performing a recompletion in an alternative zone.

AB-3

The AB-3 vertical well was spud on January 11, 2025, and reached target depth
on January 19, 2025. AB-3, targeting the extreme south of the Alberta Llanos
field, confirmed the productive potential of the multi-pool field. The well
was drilled to a total measured depth of 9,650 MD feet (8,801 feet true
vertical depth) and encountered multiple hydrocarbon-bearing intervals.  The
well encountered four oil bearing sands, the Carbonera C7, Guadalupe, Gacheta
and Ubaque, with approximately 96 total feet of oil pay.

On January 24, 2025, Arrow put the AB-3 well on production in the Ubaque
formation which has approximately 56 feet of net oil pay. The pay zone is a
clean sandstone exhibiting an average porosity of 25% with high resistivities.

The well was put on production to allow the well to clean-up and conduct
proper water cut evaluation. Currently, the well is producing 580 BOPD gross
(290 BOPD net) of 13.6° API oil with a 9% water cut (completion fluid and
formation water).  The AB-3 well is expected to pay out in 5 months.

The results from AB-3 confirm the ability to develop the Alberta Llanos field
with horizontal wells.  A new pad, CNC, is being prepared to drill horizontal
wells to the north in the Alberta Llanos discovery and to the south, in the
northern part of the Carrizales Norte field.

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

Production

Total corporate production in January was over 4,500 boe/d, exceeding the
Company's forecast. Additional production operations will be initiated prior
to the end of the first quarter with planned development wells in the Ubaque
reservoir.  Each Ubaque horizontal well has the potential to add significant
production.

Drilling Schedule

The rig is currently being moved to the Carrizales Norte pad, where further
development of the northern and southern areas of the field will begin by the
end of February.  Management plans to drill 3 horizontal wells targeting the
Ubaque sands in the coming months.  The rig will then be moved to the
Mateguafa Oueste prospect to drill Arrow's first exploration well in that
area.

Management plans to utilize a second rig in the second quarter of 2025 to
bring on low risk production.  Rig 2 will begin at the RCE pad to drill 4
directional, development wells.  Rig 2 will then move to the Alberta Llanos
prospect to begin horizontal development of the Ubaque reservoir.  Management
plans to drill two horizontal well in existing cellars with more wells
expected to follow once cellar construction has been completed.

Later in the year the Mateguafa Attic and Capullo prospects will also be
drilled.

East Tapir 3-D Seismic Program

The East Tapir 3D seismic acquisition program is progressing on schedule with
personnel and equipment being mobilized to the field. The value added by the
initial detailed 100 sq. km 3-D seismic survey on the Northern Tapir Block has
transformed the Company. The East Tapir 3-D will cover another 100 sq. km
where existing leads on the 2-D dataset will be defined in more detail. This
represents another potential value step change for the Company.  Seismic crew
mobilization commenced on February 4, 2025 with acquisition, processing and
interpretation forecast to be completed by end of April.

 

Cash Balance

 

On February 1, 2025, the Company's cash balance was US$22.7 million.

 

Forward Operational Reporting

With an ever-growing inventory of targets in Arrow's portfolio and continuous
development drilling in the 12 months ahead, the Company intends to report in
a more comprehensive and periodic manner, in the form of quarterly operational
updates. As well as reflecting the growing maturity of the Company, this will
ensure that shareholders receive regular, in-depth summaries of the period's
activities and the development of the Group's portfolio as a whole.

 

Marshall Abbott, CEO of Arrow commented:

"Initial production from the AB-3 well is an exciting event for Arrow,
reaffirming the horizontal development potential of the Alberta Llanos field.
In addition to the thick pay zone (56 feet) encountered in the Ubaque
formation, additional pay zones currently behind pipe, the C7, and Guadalupe,
provide further opportunities for production and reserves increases."

The AB-2 well was a long step out that tested the northern boundary of
multiple reservoirs. It has future value as a source of information on the
Alberta Llanos field, a potential future producer from two other zones or a
water disposal well for the Alberta Llanos complex."

"The Alberta Llanos discovery is material to Arrow and we are looking forward
to the results of horizontal wells in the field which will economically
develop the Ubaque reserves."

"Arrow's corporate production additions will commence prior to quarter-end
once the rig mobilization is complete on a pace of one horizontal on-stream
 approximately every three weeks at the Carrizales Norte pad. This is an
integral component of our US$ 50 million Board approved budget that includes
drilling 23 wells in 2025."

"The East Tapir 3-D seismic program is another facet of the accretive growth
to be crystalized over the coming year."

"We are excited by the potential of our low-risk portfolio in the Llanos Basin
and look forward to continuing to add shareholder value via the drill bit."

 

 

For further Information, contact:

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

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

 James Asensio

 George Grainger

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

 Camarco (Financial PR)
 Owen Roberts                                                        +44 (0)20 3781 8331
 Rebecca Waterworth

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. By way of a private commercial contract with the recognized
interest holder before Ecopetrol S.A., Arrow is entitled to receive 50% of the
production from the Tapir block. The formal assignment to the Company is
subject to Ecopetrol's consent.  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 scale developed by the American
Petroleum Institute (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

MD         Measured Depth

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 was formerly a member of the Canadian Society of Petroleum
Geologists, 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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