CALGARY, June 10, 2019 /CNW/ - ARROW Exploration Corp.
("Arrow" or the "Company") (TSXV: AXL) is pleased to announce test
results of the Rio Cravo Este-1 ("RCE-1") exploration well located
on the Tapir Block in the Llanos Basin of Colombia. RCE-1 was spud on April 25, 2019 and reached a total depth of
10,000 feet measured depth ("ft md") within the Ubaque Formation.
As announced on May 15th,
the well encountered 103 feet of net oil pay (true vertical depth)
with most of the pay indicated on logs within the C7, Gacheta, and
Ubaque formations. The RCE-1 exploration well was perforated
and tested over a 12-foot interval (true vertical depth) in the 'C7
A' Sand. An 11-day clean-up and production test period commenced
May 30 at 09:00 hours and was
concluded June 9 at 08:00 hours. Oil
production over the test period averaged 613 barrels per day
("bbl/d") of 28.3 API oil at a 46.5% water cut over a range of
choke sizes. A peak oil rate of 1,172 bbl/d was recorded and
the well did not produce any natural gas during the production
test.
Jack Scott, Chief Operating
Officer, stated, "We're very pleased with our RCE-1 test results.
Arrow has now gone two for two on exploration wells since forming
the company with our success on Danes-1 late last year and current
success on RCE-1. RCE-1 was an earn-in commitment well with an
accelerated payback provision which means we're able to recover
$3 million of the cost of the well
from 50% of our partner's working interest barrels. Next steps
include carrying out a pressure build-up test and putting the well
on continuous production from the C7 Sand."
Tapir Block Forward Plans
After the drilling and completion of RCE-1, Arrow has fulfilled
its commitment to earn a 50% working interest in the Tapir Block,
which has no further work commitments or land expiries for 20
years. However, given the amount of net pay encountered in RCE-1
and the mapped extent of the accumulation, testing the Gacheta and
Ubaque formations in the RCE-1 well and drilling up to two
development locations and a water disposal well are currently being
evaluated. The water disposal well and one development drilling
location are currently licensed. In addition, multiple leads and
fault trends have been identified on the Tapir Block with existing
2D seismic data. These leads and trends will be more clearly
defined with the completion of an extensive new 3D seismic survey
which Arrow plans to acquire over the next 12 months.
The Company is currently sharing the RCE-1 test results with its
reserve evaluator (DeGolyer & MacNaughton of Dallas, TX) for the purpose of procuring an
updated reserve report which is anticipated to be completed prior
to October 1, 2019. Arrow does not
currently have any reserves booked on the Tapir Block, therefore,
any reserves which may be ascribed to the RCE-1 discovery would
represent incremental upside to Arrow's corporate reserves.
Bruce McDonald, President &
CEO, commented, "We remain focused on our business plan to add
production, reduce commitments and protect downside for our
shareholders. We've now grown corporate production by approximately
100% per share net of dispositions with our success at RCE-1
without compromising our balance sheet. We continue to work
diligently towards closing a credit facility and we look forward to
updating the market on this item in the near-term. The combination
of our recent Brent crude oil hedge and the expected incremental
cash flow from RCE-1 puts Arrow in an excellent position to
continue our production growth for the balance of this year and
into next."
About ARROW Exploration
Arrow Exploration Corp. (operating in Colombia via its 100% owned subsidiary Carrao
Energy S.A.) is a publicly-traded company with a portfolio of
premier Colombian oil assets that are underexploited, underexplored
and offer high potential growth. The Company's business plan is to
rapidly expand oil production from some of Colombia's most active basins, including the
Llanos, Middle Magdalena Valley (MMV) and Caguan/ Putumayo Basin.
The asset base is 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 seasoned
team is led by a hands-on and in-country executive team supported
by an experienced board. Arrow is listed on the TSX Venture
Exchange under the symbol "AXL".
Reader Advisory
Neither the TSX Venture Exchange (TSXV) nor its regulation
services provider (as that term is defined in the policies of the
TSXV) accepts responsibility for the adequacy or accuracy of this
release.
This press release contains certain forward-looking
statements within the meaning of applicable securities laws.
Forward-looking statements are frequently characterized by words
such as "plan", "expect", "project", "target", "intend", "believe",
"anticipate", "estimate" and other similar words, or statements
that certain events or conditions "may", "should" or "will" occur.
In particular, this news release contains forward-looking
statements and information related to drilling and testing results
at RCE-1 and the Company's analysis of well logs and other
technical data, as well as statements related to anticipated
production from and cash flows related to the RCE-1 well and
associated timelines as well as procurement of both an additional
seismic survey and an updated reserves report. Although Arrow
believes that expectations and assumptions on which the
forward-looking statements and information are based are
reasonable, undue reliance should not be placed on the
forward-looking information and statements because Arrow cannot
give any assurances that they will prove to be correct.
Forward-looking statements are based on the opinions and estimates
of management at the date the statements are made and are subject
to a variety of risks and uncertainties and other factors that
could cause actual events or results to differ materially from
those projected in the forward-looking statements, including but
not limited to future development at Rio Cravo Este, expectations
and assumptions concerning Arrow's ability to develop the assets
and obtain the benefits thereof, the ability to efficiently
integrate the assets, results of operations, performance, delays or
changes in plans with respect to exploration and development or
capital expenditure, failure to obtain necessary regulatory
approvals for planned operations, and health, safety and
environmental risks. Arrow cautions that the foregoing list of
risks and uncertainties is not exhaustive. The Company cannot
assure that actual results will be consistent with these
forward-looking statements. They are made as of the date hereof and
are subject to change and the Company assumes no obligation to
revise or update them to reflect new circumstances, except as
required by law.
SOURCE ARROW Exploration Corp.