REG - Arrow Exploration - CN-2 Well Results

Arrow ExplorationAnnouncement

27/07/2023 07:15

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RNS Number : 3344H  Arrow Exploration Corp.  27 July 2023

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ARROW ANNOUNCES CN-2 WELL RESULTS EXCEED EXPECTATIONS IN UBAQUE FORMATION

CN-2 well now on production

CALGARY, July 27, 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 operational activity at the Carrizales Norte ("CN") field on the
Tapir Block in the Llanos Basin of Colombia where Arrow holds a 50% beneficial
interest.

CN-2 Well

The CN-2 well was spud on June 15, 2023, and reached target depth on June 23,
2023.  The well was drilled to a total measured depth of 9,474 feet (8,582
feet true vertical depth) and encountered multiple hydrocarbon-bearing
intervals.

Arrow has completed testing the CN-2 well in the Ubaque formation which has
approximately 60 feet of net oil pay. The pay zone is a clean sandstone
exhibiting consistent 26% porosity, four Darcy permeability and high
resistivities from top of sand to base of sand. An electric submersible pump
(ESP) was inserted in the well after perforating.

The logs responses from the Ubaque formation are very similar in both CN-1 and
CN-2 wells. Due to this, the Company made the decision to proceed directly to
the perforation and well production of the Ubaque in CN-2. Company drilling
targets and recompletion opportunities in the future.

Specific data for the initial production from the Ubaque formation are as
follows:

·    The well initiated production with a flow rate of 1,012 barrels of
fluid per day.

·    After 31 hours of production, the water cut stabilized at 3%.

·    Measured oil from the Ubaque formation shows an API gravity of
13.6°.

To efficiently manage the reservoir, the ESP is currently running at 30 Hz,
minimum optimum pump frequency, and a 128/128 choke size is being used. The
CN-2 well is currently on production, producing from the Ubaque formation at
680 BOPD gross (340 BOPD net).  Build-up analysis indicates the well can
produce at 1,400 BOPD gross at a consistent producible rate.  However,
Management's intention is to produce the well conservatively, at current
rates, to ensure the highest estimated ultimate recovery (EUR). This provides
significant operational flexibility.

The CN-2 well also tested the C7 formation where early water production
resulted in the Company making the decision to move immediately to the Ubaque
formation where more economic results were encountered.

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

Forward Work Program

The CN-3 well was spud on July 20, 2023, and is continuing to be drilled as
per schedule. After the CN-3 well, Arrow plans to move the rig to the RCE
field to further exploit the multi-zone RCE structure with two dedicated
Gacheta wells and the follow up to the RCE-6 C7 producer. The drilling rig
will then return to the CN field to drill additional Ubaque wells that include
second and tertiary formations in the borehole.

The 134 km(2) 3-D seismic survey at the West Tapir project has been
successfully shot and processed. Interpretation is ongoing on this
high-resolution data set. Multiple prospects have initially been identified
with further interpretation to be finalized over the next 60 days.

Marshall Abbott, CEO of Arrow commented:

"Production from the CN-2 well provides additional evidence that the CN field
is a material discovery for Arrow. Further to the thick pay zones encountered
in the Ubaque formation, additional pay zones currently behind pipe provide
further opportunities for production and reserve increases."

"The Company is looking forward to the CN-3 well results which will help
determine the size of the pools in the field and the potential reserves
additions. Multiple development locations are anticipated based on current
results. Arrow plans to undertake a third-party reserve evaluation of the CN
field once the current three well drilling program is complete."

"As with the RCE field, the Company plans to limit production at the CN field
by controlling pump speed and choking wells back to efficiently manage the
reservoir and discourage premature water production. Arrow believes this is in
the best long-term interest of the reservoir and will result in maximum
recovery for both fields."

"There is strong momentum at Arrow, as we continue with our fully funded, low
risk drilling program across our extensive portfolio with the spudding of two
wells at the RCE structure targeting the Gacheta formation to follow drilling
at CN-3. Alongside this we are encouraged by the initial interpretation of the
Tapir 3D seismic and look forward to providing further updates in due course."

 

 

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
 Kirsty Duff

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

API:        A specific gravity
(https://glossary.oilfield.slb.com/en/terms/s/specific_gravity)  scale
developed by the American Petroleum Institute (API
(https://glossary.oilfield.slb.com/en/terms/a/api) ) for measuring the
relative density of various petroleum liquids, expressed in degrees.

BOPD:   barrels of oil per day

boe/d:  barrels of oil equivalent 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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