TIDMAXL
RNS Number : 6386L
Arrow Exploration Corp.
07 September 2023
NOT FOR RELEASE, DISTRIBUTION, PUBLICATION, DIRECTLY OR
INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO OR FROM THE UNITED
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JURISDICTION WHERE TO DO SO MIGHT CONSTITUTE A VIOLATION OF THE
RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION.
ARROW ANNOUNCES CN-3 WELL UPDATE
Carrizales Norte field definition continues
CALGARY, September 7, 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 operational activity at the
Carrizales Norte ("CN") field on the Tapir Block in the Llanos
Basin of Colombia where Arrow holds a 50% beneficial interest.
CN-3 Well
The CN-3 well was spud on July 20, 2023, and reached target
depth on July 30, 2023. The well was drilled to a total measured
depth of 9,260 feet (8,633 feet true vertical depth) and
encountered multiple hydrocarbon-bearing intervals within the C7,
Gacheta and Ubaque formations.
The CN-3 well encountered two oil pay zones within the Ubaque
formation totaling 67 feet true vertical depth). The very thick pay
zones and excellent reservoir characteristics are similar to those
encountered in the CN-1 and CN-2 wells and further confirms the
high potential of the Ubaque formation within the Carrizales Norte
field. An additional 23 feet of pay (true vertical depth) was
encountered in the C7 and 59 feet of pay (true vertical depth) in
the Lower Gacheta formations.
Initially the Lower Ubaque zone was tested which has
approximately 50 feet of net oil pay (true vertical depth) with an
average porosity of 26%, and an estimated permeability of four
Darcies. Initially the well tested at 593 BOPD gross IP with a 30%
water cut. During the 11(th) day of testing the water cut increased
and the lower Ubaque test was completed.
On September 1, 2023, the Upper Ubaque zone was put on test
using an electric submersible pump (ESP). The well initially tested
at a 98% water cut and cleaned up to 154 BOPD gross with a 92%
water cut, during the four-day test. Testing of the Upper Ubaque
was then completed.
Based on Casing Bond Logs both high quality zones were adversely
impacted by compromised cement bond. Premature water production
confirmed this analysis. The Lower Ubaque had 65 feet of pay above
a water contact. CN-1 and CN-2 were higher structurally with no
visible water contact indicating an oil column of 115 feet from the
top of the Ubaque to the oil/water contact.
The wells drilled at Carrizales Norte have shown that the Ubaque
reservoir is ideally suited for horizontal well exploitation.
Similar fields in Colombia have been developed using horizontal
technology and displayed excellent results for both production, oil
recovery and reduced costs. Arrow has extensive experience with
horizontal wells and heavy oil reservoirs. In similar fields,
management has experienced three times the production from
horizontal wells at an additional cost of 50% of a vertical
well.
Currently the Company is preparing to test the C7 formation in
the CN-3 well. We expect results in the middle of September.
Initial production results are not necessarily indicative of
long-term performance or ultimate recovery.
The Gacheta formation has not been tested. The potential of this
upper zone will be unlocked with future wells and
recompletions.
Forward Work Program
Once CN-3 is on production the rig will move to the 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 will then return to the CN field to
drill additional Ubaque-targeted wells.
Marshall Abbott, CEO of Arrow commented:
"The CN-3 well is the 8(th) well in a row where the Company has
proven commercial production. The thick pay zone and production
from the CN-3 well provides additional evidence of the potential in
the Ubaque formation. The Company expects material reserve
additions and production from further development of this zone at
Carrizales Norte. Additional pay zones currently behind pipe
provide further opportunities for production and reserve increases
in the future.
The CN-3 well results have helped determine the size of the
Ubaque pool at Carrizales Norte and there are firm indications that
the reserves additions will transform Arrow into a much more
significant company. Multiple development locations are anticipated
based on current results. The CN-3 well has also shown the
potential for horizontal drill technology in the Ubaque reservoir.
Horizontal wells typically produce at higher rates making the field
more economic.
Arrow has undertaken a third-party reserve evaluation of the CN
field and hope to release the reserve data shortly."
"With both the RCE and CN fields, management plans to control
pump speed and choke wells back to efficiently manage the reservoir
efficiently and discourage premature water production. Arrow
believes this is in the best long-term interest of the reservoir
and will result in maximum recovery from both fields."
"Arrow's fully funded, low risk drilling program continues to
build momentum across our extensive portfolio, with the spudding of
two wells at the RCE structure targeting the Gacheta formation to
follow CN-3 being brough into production. Alongside this we are
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
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)
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
IP: initial production
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.
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