REG - Arrow Exploration - Test Results of East Pepper Well

Arrow ExplorationAnnouncement

07/09/2022 07:00

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RNS Number : 5180Y  Arrow Exploration Corp.  07 September 2022

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ARROW ANNOUNCES TEST RESULTS OF EAST PEPPER WELL

Well tested higher gas flow rate than expected

CALGARY, September 7, 2022 - Arrow Exploration Corp. (AIM: AXL; TSXV: AXL)
("Arrow" or the"Company") is delighted to announce the results of the East
Pepper well testing on the Pepper Block in the Alberta, Canada.

The 100 per cent working interest East Pepper well (100/14-21-052-22W5/3) was
tested before tie-in activities began on August 30, 2022. The East Pepper well
is a horizontal multi-stage fractured well producing from the Montney zone on
the Pepper block. The well was drilled (originally in 2014) to a total
measured depth of 15,269 feet with a horizontal leg of 2,917 feet.

Specific data for the production test for the Montney zone were as follows:

·    The production test was run over a 27.8-hour period.

·    Natural Gas production tested at a peak rate of 21,206 mcf/d (3,534
boe/d), a stabilized rate of 9,220 mcf/d (1,537 boe/d) and an average rate of
10,921 mcf/d (1,820 boe/d).

·    Condensate produced over the test period was 24.27 bbls.

·    The well had an average well head pressure of 3,276 psi over the test
period.

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

Arrow expects that the tie-in facilities will be completed and the well will
be put on production by the end of October 2022. The company expects typical
production declines in the first few months and is accordingly sizing tie-in
equipment for 7,000 mcf/d (1,167 boe/d).

Marshall Abbott, CEO of Arrow commented:

"We're encouraged by the better-than-expected East Pepper production test, the
second well on the Pepper block. We are particularly encouraged by the
material flow rate and the strength and speed of pressure recovery after shut
in. Arrow holds a 100 per cent interest in approximate 22,000 acres of
undeveloped land at Pepper. This is our second well in the Montney formation
on the Arrow asset."

"The well is expected to be put on production to take advantage of the
typically higher natural gas prices that the winter brings."

"The next project that Arrow is focusing on is the recompletion of the RCE-1
and RCS-1 wells at the Tapir block in Colombia. Both recompletions involve
bringing on additional zones in combination with existing production. This is
an exciting time for Arrow, and we look forward to providing further updates
on our progress."

Continued strong production rates from existing tied-in wells combined with
the encouraging results from new drills in Colombia support the Company's
objective of achieving a production rate of 3,000 boe/d within 18 months of
its AIM listing (completed in October 2021).

 

 

 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 (Corporate)                              +44 (0)7711 627449
 Rupert Holdsworth Hunt (Broking)
 Camarco (Financial PR)
 James Crothers                                           +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.

Glossary

Bbls:   barrels of crude oil

boe/d: barrels of oil equivalent per day

Bopd:  barrels of oil per day

mcf/d: thousands of cubic feet of natural gas per day

Psi:   pounds per square inch

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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