REG - Arrow Exploration - Operations Update

Arrow ExplorationAnnouncement

01/11/2022 07:17

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RNS Number : 8186E  Arrow Exploration Corp.  01 November 2022

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OPERATIONS UPDATE

CALGARY, November 1, 2022 - Arrow Exploration Corp. (AIM: AXL; TSXV: AXL)
("Arrow" or the "Company"), is pleased to provide an operations update.

Operations Update

Canadian operations

·      East Pepper tie-in

o  Following reporting of successful testing of the East Pepper well in
September, the Company is now pleased to confirm the tie-in has been
completed, and production began on October 25(th)

o  Initial rate was 7.6 mmcf/d or approximately 1,260 boe/d

o  The well has been choked back to produce at 6 mmcf/d or approximately
1,000 boe/d

o  The Company expects typical production declines; accelerated initial
declines which should level off to 4-5% per month

 

Colombian operations

 

·      RCS-1 and RCE-1 Workovers:

o  The workover program on RCS-1 and RCE-1 is progressing as expected and the
Company anticipates reporting on production rates in the next few weeks once
the wells have cleaned-up

 

·      RCE-3 and RCE-4 Development Drilling:

o  Operations remain on track for RCE-3 to spud in December, with RCE-4
operations to follow immediately after completion of RCE-3

 

·      Carrizales Norte

o  After drilling RCE-3, RCE-4 and the RC water disposal well, the same rig
will be moved to the Carrizales Norte field

o  Currently Arrow is building a road and pad for the Carrizales Norte field

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

 

Corporate Production

Corporate production as of October 27, 2022, is approximately 2,530 boe/d net.

Total net production from the Rio Cravo field is 760 bopd prior to any
contribution from the current workover program.

The Pepper Field has been producing approximately 1,270 boe/d, comprising
approximately 270 boe/d from West Pepper and approximately 1,000 boe/d from
East Pepper. Production at West Pepper is currently being curtailed due to
third party facility constraints. Expectations are that production will return
to approximately 400 boe/d in early Q4 2022.

The two wells, along with continuing and expected robust natural gas prices in
North America, are expected to further enhance the value of the Pepper field.
Arrow has 23,000 acres of contiguous Montney rights in the Pepper Area.

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

"Arrow is extremely pleased with the results of the tie-in of the Alberta East
Pepper Montney well. The East Pepper well results show the potential for the
large, 100% owned, 23,000 acre Pepper land block. The workover program in
Colombia is also progressing to plan, and we look forward to providing further
updates on these wells as well as the development drilling of the RCE-3 and
RCE-4 wells when updates are available. We are excited about the upcoming
capital programs and we expect material production and reserve additions. The
Arrow Team continues to execute our strategy to increase shareholder value."

 

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  44 7803 752399

 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

Bbopd: Barrels of oil per day

boe/d: Barrels of oil equivalent per day

mcf/d: thousands of cubic feet of natural gas 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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