REG - Arrow Exploration - CN-3 Production and Production Update

Arrow ExplorationAnnouncement

18/09/2023 07:00

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RNS Number : 6846M  Arrow Exploration Corp.  18 September 2023

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ARROW PROVIDES CN-3 PRODUCTION AND PRODUCTION UPDATE

C7 Light oil brought on production

CALGARY, September 18, 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-3 ("CN-3") well on the Tapir Block in the
Llanos Basin of Colombia where Arrow holds a 50% beneficial interest.

CN-3

 

The Company has completed the previously announced testing of the Carbonera C7
formation in the CN-3 well and the well has been put into production. The well
penetrated a 23 foot pay zone in a high quality upper C7 sand, with an
estimated porosity of 25%. An electric submersible pump (ESP) has been
inserted and the well was initially producing at an average rate of 1,149 BOPD
gross (575 BOPD net) of light crude oil of 33° API with a water cut of less
than 0.5% over a 22 hour period.  To efficiently manage the reservoir, and
prevent premature water breakthrough, the ESP has been shut off and the well
is naturally flowing. A 23/128 choke is being used to ease production back to
a target of 640 BOPD gross (320 BOPD net). The Company maintains the
optionality to increase production once the well has stabilized.

 

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

The Gacheta formation was not tested in the CN-3 well.  Management plans to
test the Gacheta formation at Carrizales Norte in future wells.

Forward Work Program

The rig has commenced mobilization to the Rio Cravo Este ("RCE") field where
Arrow plans to further exploit the multi-zone RCE structure with two dedicated
Gacheta wells and a follow up to the RCE-6 C7 producer. The drilling rig is
then expected to return to the Carrizales Norte field ("CN") to begin a multi
horizontal well project.  Management plan to target the proven Ubaque
formation at CN with six horizontal wells. Plans are to spud the first
horizontal well in early 2024.

Production Update

Field operations and production continue to improve. Current production,
including CN-3, is between 2,800 and 3,000 BOE/D net. Capella production,
approximately 280 BOPD, remains shut-in, waiting on government and operator
meetings with communities in the area. Two wells at the Oso Pardo field,
approximately 80 BOPD in aggregate, are shut in waiting routine maintenance.
To minimize capital requirements, Management will use the same rig to conduct
this maintenance program and for drilling operations on Oso Pardo 3 and 4.
The rig is expected to arrive at the Oso Pardo field in mid-October.

 

Marshall Abbott, CEO of Arrow commented:

"The CN-3 testing results of the C7 formation have confirmed that the
Carrizales Norte field is transformational for the company. Multiple
development locations are anticipated based on current results, including
horizontal drilling in the Ubaque reservoir.  Horizontal wells typically
produce at higher rates, increasing recovery and the economics of heavy oil
fields."

"Arrow's fully funded, low risk drilling program continues to build momentum
across our extensive portfolio, where we aim to spud five additional
development wells between now and year-. We are also 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)
 Andrew Turner                                                                          +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 scale developed by the American Petroleum
Institute (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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