REG - Arrow Exploration - RCE-6 Update and Operations Update

Arrow ExplorationAnnouncement

16/11/2023 07:00

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RNS Number : 6170T  Arrow Exploration Corp.  16 November 2023

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ARROW PROVIDES RCE-6 UPDATE AND OPERATIONS UPDATE

Ubaque oil discovery at RCE, with  production being brought on from the C7

CALGARY, November 16, 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 Rio Cravo Este-6 ("RCE-6") well on the Tapir Block in the Llanos
Basin of Colombia where Arrow holds a 50% beneficial interest, and the Oso
Pardo-3 well on the Oso Pardo field in the Middle Magdalena Valley Basin of
Colombia where Arrow has a 100% working interest.

RCE-6

The Company has completed the RCE-6 well in the Carbonera C7 formation and the
well has been put into production. The well penetrated a 16 ft pay zone in a
high quality upper Carbonera C7 sand, with a porosity of 27%. The well is
currently flowing, with the ESP turned off, at 834 BOPD gross (417 BOPD net)
of 29.8 API gravity.  As reservoir stewards, the Company will conservatively
produce at rates that allow for maximum oil recoveries and optimal production
rates.

After penetrating the Carbonera C7, the RCE-6 well continued drilling and
encountered pay in the Ubaque formation.  In the Ubaque formation the well
penetrated 7 ft of high quality pay , with an estimated porosity of 24%. The
Ubaque zone was tested for 78 hours and reached a production rate of 393 BOPD
gross (197 BOPD net) of heavy crude oil of 13.3° API with a water cut of less
than 10%. The Ubaque formation was shut in after the test and the well was
completed in the Carbonera C7 formation. The Ubaque discovery in RCE-6 is
expected to add reserves and future production to Arrow.

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

The Gacheta formation was not tested in the RCE-6 well.

Tapir Forward Work Program

The Rio Cravo Este-7 well ("RCE-7") spud on November 14. This development well
is targeting the multizone pay stack within the RCE fault bounded structure.
As well, upon RCE-7 being placed on-stream, the RCE 8 development well will be
drilled to further evaluate the multizone potential that has evolved from the
RCE structure.

The drilling rig is then expected to return to the Carrizales Norte field
("CN") to begin a multi well program. Priority vertical locations will focus
on exploitation of the material Ubaque discovery. Upon completion of the
dedicated horizontal well pad, a series of horizontal wells will be drilled
with a second rig to efficiently exploit the Ubaque reservoir. Pad completion
is expected in Q1 2024. The existing Carrizales Norte vertical pad will focus
on testing the Carrizales Nor Oeste prospect directly adjacent to the Ubaque
discovery. Horizontal drilling is expected to commence in late Q1 2024 once
the pad is ready. As previously disclosed the Ubaque Sand reservoir is 60 feet
thick over a large area and is tailor made for horizontal well exploitation.

 

Oso Pardo - 3

The Oso Pardo-3 ("OP-3") well spud on October 27 and has reached TD in the
Umir formation. The well penetrated multiple pay zones totaling 53 ft of net
pay in high quality sands, with an average porosity of 23%. Initial 3D seismic
and log interpretation indicates OP-3 has proven up additional locations
within the existing  100%-owned Oso Pardo Block.

OP-3 is currently being completed and the Company plans to give further
updates once this well is put on production in the next couple of weeks.

The Company plans to drill a second well, Oso Pardo-4, once the Oso Pardo-3
well is on production.

Marshall Abbott, CEO of Arrow commented:

"The RCE-6 test results in both the Ubaque formation and Carbonera are
material and exciting for the Company. The results demonstrate that the
Carbonera remains a solid high volume producer while  the Ubaque formation
has proven production that extends beyond the Carrizales Norte complex.
Multiple development locations are anticipated based on current results,
including horizontal drilling in the Ubaque reservoir in the Carrizales Norte
field.  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 have four additional
development wells on production before the end of 2023. We are also encouraged
by the 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
(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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