TIDMAXL
RNS Number : 6846M
Arrow Exploration Corp.
18 September 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 PROVIDES CN-3 PRODUCTION AND PRODUCTION UPDATE
C7 Light oil brought on production
CALGARY, September 18, 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 Carrizales Norte-3 ("CN-3")
well on the Tapir Block in the Llanos Basin of Colombia where Arrow
holds a 50% beneficial interest.
CN-3
The Company has completed the previously announced testing of
the Carbonera C7 formation in the CN-3 well and the well has been
put into production. The well penetrated a 23 foot pay zone in a
high quality upper C7 sand, with an estimated porosity of 25%. An
electric submersible pump (ESP) has been inserted and the well was
initially producing at an average rate of 1,149 BOPD gross (575
BOPD net) of light crude oil of 33deg API with a water cut of less
than 0.5% over a 22 hour period. To efficiently manage the
reservoir, and prevent premature water breakthrough, the ESP has
been shut off and the well is naturally flowing. A 23/128 choke is
being used to ease production back to a target of 640 BOPD gross
(320 BOPD net). The Company maintains the optionality to increase
production once the well has stabilized.
Initial production results are not necessarily indicative of
long-term performance or ultimate recovery.
The Gacheta formation was not tested in the CN-3 well.
Management plans to test the Gacheta formation at Carrizales Norte
in future wells.
Forward Work Program
The rig has commenced mobilization to the Rio Cravo Este ("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 is then expected to return to
the Carrizales Norte field ("CN") to begin a multi horizontal well
project. Management plan to target the proven Ubaque formation at
CN with six horizontal wells. Plans are to spud the first
horizontal well in early 2024.
Production Update
Field operations and production continue to improve. Current
production, including CN-3, is between 2,800 and 3,000 BOE/D net.
Capella production, approximately 280 BOPD, remains shut-in,
waiting on government and operator meetings with communities in the
area. Two wells at the Oso Pardo field, approximately 80 BOPD in
aggregate, are shut in waiting routine maintenance. To minimize
capital requirements, Management will use the same rig to conduct
this maintenance program and for drilling operations on Oso Pardo 3
and 4. The rig is expected to arrive at the Oso Pardo field in
mid-October.
Marshall Abbott, CEO of Arrow commented:
"The CN-3 testing results of the C7 formation have confirmed
that the Carrizales Norte field is transformational for the
company. Multiple development locations are anticipated based on
current results, including horizontal drilling in the Ubaque
reservoir. 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 spud
five additional development wells between now and year-. We are
also 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
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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END
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