REG - Arrow Exploration - Fourth Ubaque Horizontal Well Results

Arrow ExplorationAnnouncement

23/09/2024 07:00

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RNS Number : 1389F  Arrow Exploration Corp.  23 September 2024

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ARROW ANNOUNCES FOURTH UBAQUE HORIZONTAL WELL RESULTS

CNB HZ-5 on production

 

CALGARY, September 23, 2024 - 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 operational activity.

 

CNB HZ-5

The fourth horizontal well on the Carrizales Norte "B" pad (CNB HZ-5) is now
on production. The well has a current flow rate exceeding 2,700 BOPD gross
(1,350 BOPD net to Arrow) and production is continuing to increase.
Currently the well, which has been cleaning up over time, has an 11% water
cut.  Management's expectations are that the CNB HZ-5 well will achieve
production rates similar to the Company's first three horizontal wells, and
similar payback schedules of less than 2 months. Please note initial
production flows are not necessarily indicative of long-term performance or
ultimate recovery and a stabilized production rate will be determined in the
first few weeks of operations, in keeping with conservative reservoir
management. Further updates will be provided in due course.

 

CNB HZ-5 was spud on August 22, 2024, and reached a target depth of 8,472 feet
(true vertical depth) on September 7, 2024.  The well was drilled to a total
measured depth of 13,350 feet with a horizontal section of approximately 4,070
feet. CNB HZ-5 came on production on September 15, 2024, with the use of an
electric submersible pump (ESP) and, based on initial results, has displayed
comparable reservoir characteristics to the other horizontal wells drilled on
the CNB pad.

 

The CNB HZ-5 is the second Arrow well to use Autonomous Inflow Control Devices
(AICDs) which are designed to limit the water cut in horizontal wells. The
results of CNB HZ-4 and HZ-5 are being closely monitored to determine if these
technologies, or others, will enhance production and ultimate recovery in the
Ubaque reservoir.

 

CNB HZ-4, HZ-3 and HZ-1

The first three horizontal wells (CNB HZ-1, HZ-3 and HZ-4) on the CNB pad
continue to perform above expectations with the following flow rates and water
cuts:

 

CNB HZ-4             Gross 2,120 BOPD            Net 1,060 BOPD
               Water Cut 13%

CNB HZ-3             Gross 1,900 BOPD            Net
950 BOPD                    Water Cut 48%

CNB HZ-1             Gross 1,600 BOPD            Net
800 BOPD                    Water Cut 52%

 

Upcoming Drilling

The Petroworks rig is being moved to the sixth cellar on the Carrizales Norte
B Pad where the Company plans to spud the fifth horizontal well (CNB HZ-6).
Thereafter, the Company expects to drill one additional horizontal well on the
B pad, followed by the Chorreron-1 (formerly known as Baquiano-1) exploration
well, which is on trend with the Carrizales Norte field.

 

Corporate Update

Current net corporate production is approximately 5,835 BOE/D, inclusive of
CNB HZ-5.

 

Arrow's cash position was approximately $15 million on September 1, 2024.
Arrow has maintained a healthy balance sheet with no debt.

 

Marshall Abbott, CEO of Arrow Exploration Corp., commented:

"The horizontal wells at the CNB pad continue to surpass expectations.
Arrow's focus for the remainder of 2024 will be the completion of the six well
horizontal well program at Carrizales Norte as well as a low-risk exploration
well at the Baquiano prospect."

 

"Arrow has begun the planning and construction of roads and pads in the Tapir
block in order to accelerate the 2025 capital program which is expected to
include the drilling of low-risk exploration wells at Mateguafa Oeste,
Capullo, and Mateguafa Attic. In 2025 the Company is also targeting further
horizontal Ubaque and vertical C7 development drilling at Carrizales Norte,
and Baquiano. The Company is also planning to drill further development
vertical wells at Rio Cravo Este, commencing at the end of 2024 and continuing
in 2025 with a second drilling rig."

 

"This enhanced capital program underlies the prolific setting of the Tapir
Block in the Llanos Basin in Colombia. The block displays significant
hydrocarbon density in multiple oil-bearing zones down to 10,000 feet total
depth."

 

"Arrow continues to improve drilling metrics on both horizontal and vertical
wells, using internally generated development drilling and completion
strategies."

 

 

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)
 Andrew Turner                                                       +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. 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 global pandemics, 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

Bbl/d or bop/d: Barrels per day

$/Bbl: Dollars per barrel

Mcf/d: Thousand cubic feet of gas per day

Mmcf/d: Million cubic feet of gas per day

$/Mcf: Dollars per thousand cubic feet of gas

Mboe: Thousands of barrels of oil equivalent

Boe/d: Barrels of oil equivalent per day

$/Boe: Dollars per barrel of oil equivalent

MMbbls: Million of barrels

 

BOE's may be misleading particularly if used in isolation. A BOE conversion
ratio of 6 Mcf: 1 bblis based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead.

 

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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