REG - Arrow Exploration - Operations Update and Exercise of Warrants

Arrow ExplorationAnnouncement

13/10/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20221013:nRSM7204Ca&default-theme=true

RNS Number : 7204C  Arrow Exploration Corp.  13 October 2022

NOT FOR RELEASE, DISTRIBUTION, PUBLICATION, DIRECTLY OR INDIRECTLY, IN WHOLE
OR IN PART, IN OR INTO OR FROM THE UNITED STATES, AUSTRALIA, JAPAN, THE
REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO MIGHT
CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH
JURISDICTION.

OPERATIONS UPDATE AND EXERCISE OF WARRANTS

CALGARY, October 13, 2022 - Arrow Exploration Corp. (AIM: AXL; TSXV: AXL)
("Arrow" or the "Company"), is pleased to provide an operations update.

Operations Update

Rigs and equipment are currently moving into place for the Q4 tie in, workover
and drilling program.

·      East Pepper tie-in

o  All licences and approvals have been received

o  Tie-in work began on September 28

o  Production expected to begin by the end of October

o  Expected IP rate of 1,000 boe/d and the Company expects typical production
declines thereafter

 

·      RCS-1 and RCE-1 Workovers:

o  Workover rig began mobilization on October 11

o  The rig expected is to arrive at the Rio Cravo field by the end of this
week

o  Workover program on RCS-1 and RCE-1 expected to begin shortly thereafter
and be completed by early November

o  The workover program will add production from the C7 stringer and C7A
units at RCS-1 and the C7 stringer at RCE-1. This program is expected to have
a material impact on overall RCE production

o  Management expects the two workovers to add in excess of 500boe/d.

 

·      RCE-3 and RCE-4 Development Drilling:

o  Rig mobilization to the Rio Cravo field expected to begin mid-November, as
the rig has been delayed by the previous operator.

o  RCE-3 expected to spud in December.  Expect drilling and completion to
take circa one month with first production anticipated in early 2023

o  RCE-4 will follow immediately after completion of RCE-3

o  RCE-3 and RCE-4 are infill development wells with initial productivity
rates estimated to be similar to the C7 and C7 Stringer production at RCE-2

 

·      Carrizales Norte

o  Drilling at Carrizales-1 and -2 is anticipated to begin in Q1 2023

 

Corporate production as of October 11, 2022, is approximately 1,500 boe/d.
Production from the RCE-2 well is approximately 550 bbls/d net (1,100 bbls/d
gross) producing from the C7A and C7 stringer zones. Production from the RCS-1
well is approximately 170 bbls/d net (340 bbls/d gross) from the C7B zone. As
set out above, organic production growth is expected from the workovers of
RCE-1 and RCS-1, and the development drilling of RCE-3 and RCE-4 wells to
further exploit known hydrocarbon accumulations. Current production from the
RCE-1 and RCS-1 wells is ahead of forecast in aggregate.

The West Pepper well, owned 100% by Arrow and located in Canada, is producing
280 boe/d currently, with production curtailed due to third party facility
constraints. Management expects that production will return to approximately
400 boe/d in early Q4 2022. Arrow is currently working on the tie-in for the
East Pepper gas well in Canada (100% owned by Arrow). This second well, along
with continuing and expected robust natural gas prices in North America, is
expected to further enhance the value of the Pepper field.

In addition to the 3D seismic survey Arrow purchased earlier this year, the
Company intends to execute on a 130 square kilometer 3D seismic survey on the
northwest section of the Tapir block in Colombia. This will further delineate
low risk exploration fault structures that have been identified on 2D seismic
data and, if successful, will provide material running room through 2023
onwards. The shooting of this seismic survey is expected to begin in Q1 2023.

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

"Arrow is excited about the upcoming capital program and expects material
production and reserve additions.  The Arrow team continues to execute our
strategy to increase shareholder value"

Exercise of Warrants and Total Voting Rights

The Company also announces that pursuant to the receipt of notices for the
exercise of warrants issued in October 2022, it has issued 400,000 new common
shares of no par value ("Common Shares").

Application has been made for the 400,000 new Common Shares to be admitted to
trading on AIM ("Admission"). It is expected that Admission will occur on
October 17, 2022. Following Admission, the Company will have 216,575,741
Common Shares in issue with voting rights and admitted to trading on AIM. This
figure may be used as the denominator for the calculations by which they will
determine if they are required to notify their interest in, or a change to,
their interest in the share capital of the Company under the Financial Conduct
Authority's Disclosure Guidance and Transparency Rules.

 

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

 Gordon Hamilton

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

 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".

Cautionary Statement

This press release contains various references to the abbreviation "BOE" which
means barrels of oil equivalent. Where amounts are expressed on a BOE basis,
natural gas volumes have been converted to oil equivalence at six thousand
cubic feet (Mcf) per barrel (bbl). The term BOE may be misleading,
particularly if used in isolation. A BOE conversion ratio of six thousand
cubic feet per barrel is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead.

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
Bbl/d: Barrels per day

Boe/d: Barrels of oil equivalent per day

Working Interest Gross Reserves: The reserves attributable to the Company's
license working interest pre-taxes and royalties.

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. The recovery and reserve estimates
provided in this news release are estimates only, and there is no guarantee
that the estimated reserves will be recovered. Actual reserves may eventually
prove to be greater than, or less than, the estimates provided herein. In
certain of the tables set forth above, the columns may not add due to
rounding.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDUUSARUBURAUA