REG - Arrow Exploration - CN-1 WELL UPDATE

Arrow ExplorationAnnouncement

08/06/2023 07:00

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RNS Number : 0247C  Arrow Exploration Corp.  08 June 2023

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CN-1 WELL UPDATE

CALGARY, June 8, 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
Carrizales Norte-1 well ("CN‑1"), an exploration well on the Tapir Block in
the Llanos Basin of Colombia where Arrow holds a 50 per cent beneficial
interest.

CN-1

 

Further to the Company's announcement on 30 May 2023, the Company has
commenced completion operations at CN-1 and Management expects to proceed with
putting the C7A and C7 zones straight on production during the course of next
week. The C7 reservoirs were the primary target of CN-1 and displayed
excellent reservoir characteristics.

After a very successful test of the 45-foot thick Ubaque pay zone, where
stabilized rates exceeded 1,100 BOPD gross, the Gacheta zones were tested and
proved unproductive at this location. Management is investigating potential
reasons for the lack of productivity and plans to re-evaluate these Gacheta
zones in future wells. Meanwhile the Company is proceeding with completion of
the C7 and C7A zones. Preliminary interpretation of the CN-1 discovery
suggests aggregate reserve capture materially exceeds initial expectations.

Management's experience with the C7A and C7 zones at Rio Cravo Este ("RCE")
indicates CN-1 will produce in a similar fashion to the wells at RCE where
production rates have exceeded 1,000 BOPD gross. Initial production results
are not necessarily indicative of long-term performance or ultimate
recovery.

Immediately following the CN-1 well being put on production, the rig will move
over to spud the Carrizales Norte-2 (CN-2) well. Spud to target depth time
(10-12 days) has decreased through our drilling program and costs have come in
consistently under budget.

Marshall Abbott, CEO of Arrow commented:

"The Carrizales Norte-1 discovery in both the C7 and Ubaque reservoirs are
extremely important and material events for Arrow with both the C7 and Ubaque
reservoirs exceeding expectations. These results expand and accelerate the
Carrizales Norte development plan beyond three wells. As well, Arrow is
planning to complete a new reserve report once the Carrizales Norte 2 and 3
wells have been completed.

"Our expectation is that the Carrizales Norte wells will be quick to payout in
the current oil price environment and add to shareholder value. This is a very
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. By way of a private commercial contract with the recognized
interest holder before Ecopetrol S.A., Arrow is entitled to receive 50% of the
production from the Tapir block. The formal assignment to the Company is
subject to Ecopetrol's consent.  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.

Glossary

BOPD:   barrels of oil 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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