REG - Arrow Exploration - RCE-5 Well Update

Arrow ExplorationAnnouncement

03/04/2023 07:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230403:nRSC0468Va&default-theme=true

RNS Number : 0468V  Arrow Exploration Corp.  03 April 2023

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.

ARROW ANNOUNCES REACHING TARGET DEPTH ON THE RCE-5 WELL

Production zones identified

CALGARY, April 3, 2023 - 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 drilling of Rio Cravo Este-5 ("RCE-5"), a development well on
the Rio Cravo oil field within the Tapir Block in the Llanos Basin of
Colombia, and is providing an operations update.

RCE-5 Update

The RCE-5 well reached total depth on March 29, 2023. The well was drilled to
a total measured depth of 10,200 feet (8,100 feet true vertical depth) and
encountered six hydrocarbon bearing intervals totaling 90 net feet of oil pay
(measured depth).

The following hydrocarbon bearing intervals have been identified:

·    Carbonera C7: 36 feet net oil pay over two intervals

·    Lower Gacheta: 54 feet net oil pay over four intervals

Interval thicknesses are not necessarily indicative of long-term performance
or ultimate recovery.

It is expected that the RCE-5 well will begin production in early April 2023.
The rig will then be moved to the Carrizales Norte-1 (CN-1) location with the
intention that CN-1 will spud late April or early May.

RCE-3 and RCE-4 Update

At RCE-3, the submersible pump has been engaged and the well is currently
producing at 800 BOPD gross (400 BOPD net) with 10% watercut. Plans are to
increase production on a measured conservative basis to achieve balance
between maximum production and ultimate recoverable reserves. The same
incremental approach will be applied to RCE-4 and RCE-5.

RCE-4 continues to flow naturally at 700 BOPD gross (350 BOPD net) with 1%
watercut.

Marshall Abbott, CEO of Arrow commented:

RCE-5 was drilled under budget and on time. The team continues to become more
experienced in the play and this is resulting in cost and time savings. The
net pay encountered in RCE-5 is one of the largest to date in the RCE field.
We now have six wells drilled into the RCE structure and a very good
understanding of the distribution of the various oil-bearing reservoirs we
have encountered."

We're currently completing the C7 zone at RCE-5, targeting to be on stream in
early April. These wells continue to increase Arrow's production and reserves.
Arrow will bring RCE-5 on slowly and increase production to best manage the
oil reservoir as it continues to do with RCE-3 and RCE-4.

Despite the lost production at the Capella field, Arrow is on a trajectory to
exceed 3,000 BOPD in the near term. These wells are quick to payout providing
positive cashflow for the Company during a high commodity price environment.
This is an exciting time for Arrow, and we look forward to providing further
updates on our progress.

 

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                                                                        +44 (0)7711 627449
 Rupert Holdsworth Hunt

 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".

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.

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").

Glossary

BOPD - barrels of oil per day

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  DRLKLLFBXZLEBBD