TIDMAXL
RNS Number : 7715Z
Arrow Exploration Corp.
27 January 2022
27 January 2022
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 Exploration Corp.
("Arrow" or the "Company")
OPERATIONS UPDATE
Arrow Exploration Corp. (AIM: AXL ; TSXV: AXL) is pleased to
share an operational update, as well as near-term plans for its
Colombian and Canadian assets.
Highlights
-- Production as of January 21(st) , 2022 was approximately
1,320 boe/d (net to Arrow), benefiting from rising Brent Crude oil
prices and strong natural gas prices in Canada
o 453 bbl/s oil production from Colombian portfolio
o 868 boe/d gas production from Canadian portfolio
-- Organic growth opportunities advancing, with the RCE-2 well
on the Tapir Block, Colombia expected to commence drilling in early
March and the Company considering tie-in opportunities in Canada,
given the success of the West Pepper well
-- Acquisition market remains robust, with the Company
continuing to evaluate numerous opportunities
Colombia
Oil Production
The Company's Colombia oil production continues to benefit from
rising Brent Crude oil prices. As of January 21(st) , 2022 the
Company's production in Colombia included 137 bbl/s (net to Arrow)
from the RCE-1 well (Tapir Block), 125 bbls/d from the Oso Pardo
Field (Santa Isabel Block), and 191 bbls/d (net to Arrow) from the
Capella Field (Ombu Block), for a total of approximately 453 bbls/d
(net to Arrow).
Based on prevailing Brent Crude oil prices, Arrow expects its
Colombian oil assets to generate approximately US$450,000 in cash
flow in January 2022, prior to G&A expenses.
Upcoming Drilling
The Company continues to advance towards drilling the RCE-2 well
on the Tapir Block. The partners on the Tapir Block (Arrow 50% :
PetrolCo 50%) are undertaking the community socialization process,
the procurement of supplies and services, as well as tenders for a
drilling rig. Site preparations are expected to commence in the
coming weeks.
Arrow expects the RCE-2 well to spud during the second week of
March 2022.
While preparations for drilling the subsequent RCE-3 well are at
an earlier stage, Arrow expects the RCE-3 to spud during April
2022.
The Company expects to provide a further update once more exact
dates for the spudding of the RCE-2 and RCE-3 wells are
confirmed.
Canada
As announced on December 13(th) , 2021 the Dalehurst
06-26-52-23W5 well ("West Pepper") located near Edson, Alberta,
Canada was brought on stream.
West Pepper has continued to perform according to the Company's
expectations, and following natural declines from the initial flush
production levels, as of January 21(st) , 2022 the well was
producing approximately 775 boe/d.
The Company is benefiting from currently robust natural gas
prices in Western Canada. The February 2022 natural gas futures
contracts price at the AECO hub (the benchmark for natural gas
prices in Canada) was C$4.30/GJ as of January 24(th) , 2022, being
approximately 11% higher than the nearest-month futures contract
price of C$3.87/GJ as of the first day of production from West
Pepper.
Based on prevailing AECO natural gas prices Arrow expects West
Pepper to generate approximately US$298,000 in cash flow in January
2022, prior to G&A expenses, in addition to approximately
US$28,000 in cash flow expected from the Company's share of
production at the Fir natural gas asset (approximately 93
boe/d).
As a result of the prevailing robust natural gas prices in
Western Canada, the Company is also evaluating the option of
tie-ing in the 14-21-52-22W5 Dalehurst well ("East Pepper Well").
The Company is in discussions with potential off-takers, and
expects to provide an update on the East Pepper Well in the coming
months.
Acquisition Opportunities
Arrow's management continues to evaluate numerous acquisition
opportunities in Colombia and other low-risk jurisdictions. The
Company has formed a dedicated internal team which is working in
collaboration with its external advisors to identify and pursue
accretive acquisition opportunities that would create additional
value for shareholders, above-and-beyond Arrow's existing asset
base.
2021 Year-End Reserves
The Company has retained the services of Boury Global Energy
Consultants for the preparation of the Company's 2021 year-end
reserves report. The report is in progress, and the Company expects
to announce the results by the end of February 2022.
Marshall Abbott, CEO of Arrow, said:
"Our production portfolio continues to go from strength to
strength, driving significant cash flow generation and placing us
very well for a strong 2022 as we evaluate further growth
opportunities. We have a number of developments in the pipeline and
look forward to providing shareholders with further updates in due
course."
For further Information, contact:
Arrow Exploration
Marshall Abbott, CEO +1 403 651 5995
Max Satel, EVP Corporate Development
& Investor Relations +1 416 904 2258
Arden Partners (Joint Broker and
Nominated Adviser)
Ruari McGirr / Richard Johnson
(Corporate) +44 (0)20 7614 5900
Seb Wykeham / Simon Johnson (Broking)
Auctus Advisors (Joint Broker)
Jonathan Wright (Corporate) + 44 (0)7711 627449
Rupert Holdsworth Hunt (Broking)
Camarco (Financial PR)
James Crothers +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
under-exploited, 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.
Glossary
Bbls/d barrels of oil per day
boe/d barrels of oil equivalent per day
GJ gigajoule
AECO hub the AECO hub gas storage facility in southern Alberta
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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END
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