REG - Arrow Exploration - REACHING TARGET DEPTH ON THE CN-1 WELL

Arrow ExplorationAnnouncement

15/05/2023 07:00

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RNS Number : 3351Z  Arrow Exploration Corp.  15 May 2023

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ARROW ANNOUNCES REACHING TARGET DEPTH ON THE CN-1 WELL

Multiple zones identified

CALGARY, May 15, 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
drilling of Carrizales Norte 1 (CN-1), an exploration well on the Tapir Block
in the Llanos Basin of Colombia.

 

CN-1 Update

The CN-1 well was spud on May 1, 2023 and reached total depth on May 11, 2023.
The well was drilled to a total measured depth of 9,190 feet (8,511 feet true
vertical depth) and encountered approximately 148 feet of net oil pay measured
depth (128 feet TVD).

The hydrocarbon bearing intervals are as follows:

·    26 feet of net pay in Carbonera C7 sands. High quality reservoir
characteristics are similar to what was encountered in the highly productive
Rio Cravo Este (RCE) series of wells.

·    64 feet of net oil pay within the Gacheta formation. Pay sands
exhibit excellent reservoir characteristics with oil shows and strong
hydrocarbon chromatograph response.

·    58 feet net oil pay within the Ubaque formation. The main pay zone is
a very clean, thick and continuous sandstone with excellent reservoir
characteristics.

 

Interval thicknesses are not necessarily indicative of long-term performance
or ultimate recovery.

A testing and completion program is under review. Testing will likely begin
with the deeper Ubaque, followed by the Gacheta and then the highly porous and
permeable C7 reservoirs. Tests will be conducted over the following weeks,
with production forecast to commence in early June 2023. The Carrizales
Norte-2 (CN-2) well will be drilled immediately upon completion of CN-1.

 

Marshall Abbott, CEO of Arrow commented:

"The CN-1 discovery is an extremely important and material event for Arrow and
is further evidence of the potential of the Tapir block. All primary targets
in the well have clear indications of oil pay and have the potential to
greatly increase the Company's reserves and production.  Currently there are
no reserves booked at the Carrizales Norte field. Apart from the exceptional
technical results, the CN-1 well was drilled on time and under budget. Arrow
plans to test several zones over the following weeks and then make a decision
on which zone to bring on production.

Our expectation is that the CN wells will behave in a similar manner to the
RCE wells, quick to payout with triple digit IRRs providing positive cashflow
for the Company during a high commodity price environment. 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. 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.

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.

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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