TIDMAXL
RNS Number : 1177D
Arrow Exploration Corp.
19 June 2023
NOT FOR RELEASE, DISTRIBUTION, PUBLICATION, DIRECTLY OR
INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO OR FROM THE UNITED
STATES, AUSTRALIA, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER
JURISDICTION WHERE TO DO SO MIGHT CONSTITUTE A VIOLATION OF THE
RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION.
ARROW ANNOUNCES CN-1 RESULTS EXCEED EXPECATIONS AND OPERATIONS
UPDATE
CN-1 now on production
CALGARY, June 19, 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 percent beneficial
interest.
CN-1
The CN-1 well was spud on May 1, 2023, and reached target depth
on May 11, 2023. CN-1 was the first well drilled into the CN field
and results from this well have confirmed the productive potential
of the multi-pool field. The well was drilled to a total measured
depth of 9,190 feet (8,511 feet true vertical depth) and
encountered multiple hydrocarbon-bearing intervals.
Arrow has completed the final test on the CN-1 well in the C7
formation which has approximately 26 feet of net oil pay. The pay
zone is a clean sandstone exhibiting consistent 30% porosity and
high resistivities. An electric submersible pump (ESP) has been
inserted in the well after perforating.
Specific data for the production test on the C7 formation are as
follows:
-- The production test took place over a 62-hour period.
-- The well was tested at three different flow rates to evaluate
productivity and to plan for water cut management.
o The first flow period was held for 12 hours and showed an
average oil rate of 662 BOPD gross,
o The second flow period was for 32 hours and showed an average
oil rate of 902 BOPD gross, and,
o The third flow period was held for 17 hours and showed an
average oil rate of 1,134 BOPD gross.
-- Oil production tested at a peak rate of 1,272 BOPD, and a
final stabilized rate of 1,134 BOPD gross.
In the final 24 hours of the test, CN-1 produced at a rate of
1,103 BOPD gross (552 BOPD net) of oil at 33.5deg API and with a
12% water cut (completion fluid and formation water). The
production test utilized running the ESP at 30 Hz, the lowest
setting on the pump. In addition, a 28/128 choke was inserted to
efficiently manage the reservoir. Water cut decreased throughout
completion testing. The CN-1 well is currently on production,
producing from the C7 formation at 1,100 BOPD gross (550 BOPD net).
The testing results indicate the well is capable of higher rates
and the ultimate flow rate will be determined in the first few
weeks of production.
Initial production results are not necessarily indicative of
long-term performance or ultimate recovery.
CN-2
The CN-2 well was spud on June 15, 2023. The drilling, testing
and completion of the well is expected to take three weeks. CN-3
will be drilled immediately upon completion of the CN-2 well.
Operations Update
Production
Incorporating CN-1, total Corporate production is between 2,700
and 2,900 boe/d. The Capella field, in which Arrow has a 10%
non-operated interest, remains shut in due to ongoing protests.
There is currently no timeline for when the field will begin
production. The lost production is approximately 280-300 BOPD net
to Arrow.
Upcoming Drilling
After the CN-3 well is completed, the rig will move to the Rio
Cravo Este ("RCE") field to drill two dedicated Gacheta wells,
RCE-6 and RCE-7. A third well, Rio Cravo Sur-2 ("RCS"), is also
expected to be drilled at that time targeting the C7 formation.
Following completion of the RCE and RCS wells, the rig will move
back to the CN field where low risk infill drilling is expected to
begin before the end of 2023.
West Tapir 3D Seismic Program
The West Tapir 3D seismic acquisition program was completed on
April 10, 2023. Processing has been completed and Management is
currently analyzing results and determining the location of future
drilling prospects.
In late fall, 2023, Arrow plans a second 3D acquisition program
in the southern part of the Tapir block. The program is expected to
cover a 90 km2 area, where 2D seismic has highlighted a large
lead.
Cash Balance
On June 1, 2023, the Company's cash balance was US$11.2
million.
Marshall Abbott, CEO of Arrow commented:
"Initial production from the CN-1 well has exceeded expectations
and is an exciting event for Arrow . In addition to the thick pay
zones encountered on the Carbonera C7 formation, additional pay
zones currently behind pipe provide further opportunities for
production and reserve increases. This includes the successful
production testing of the Ubaque Formation that produced at over
1,200 BOPD gross."
"The Company is looking forward to the CN-2 and CN-3 results
which will further develop the exploration discoveries and help
determine the size of the pools in the field and the potential
reserve additions. Arrow plans to undertake a third-party reserve
evaluation of the CN field once the current drilling program is
complete."
"Once the CN-2 and CN-3 wells are complete and on production,
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 RCS-1 C7 producer. We lood forward to providing
further updates on this low-risk development drilling program."
"The RCE field is currently producing better than budgeted, and
the Company is controlling pump speed and choking wells back to
efficiently manage the reservoir and discourage premature water
production. Additional material production from RCE is expected
with the completion of the upcoming three-well development
program."
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
James Asensio
Gordon Hamilton +44 (0)20 7523 8000
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. 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").
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDNKFBBDBKBQAD
(END) Dow Jones Newswires
June 19, 2023 02:00 ET (06:00 GMT)
Arrow Exploration (LSE:AXL)
Historical Stock Chart
From Apr 2024 to May 2024
Arrow Exploration (LSE:AXL)
Historical Stock Chart
From May 2023 to May 2024