TIDMAXL
RNS Number : 0581H
Arrow Exploration Corp.
04 April 2022
4 April 2022
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 Exploration Corp.
("Arrow" or the "Company")
SPUDDING OF RCE-2 Well AND 2022 CORPORATE Outlook
Arrow Exploration Corp. (AIM: AXL ; TSXV: AXL) is pleased to
announce that the contracted Top Drilling Company rig has spud the
Rio Cravo Este-2 ("RCE-2") well on the Tapir Block in the Llanos
Basin of Colombia. The Company is also pleased to share an update
on its 2022 corporate outlook.
Marshall Abbott, CEO of Arrow commented :
"We are delighted to have spud the second well at Rio Cravo
Este, RCE-2, on the Tapir Block. Following the completion of
drilling and testing of the RCE-2 well, the rig will move to the
location of our next well, the RCS-1 well (formerly the RCE-3
well), which is expected to spud in early-May.
"In addition, we are pleased to also provide a wider update
across our portfolio, which is demonstrative of the significant
work we have done to date; but also of the potential which remains.
Our production remains strong at over 1,100 boe/d and continues to
grow, producing positive cashflow for the Company during a high
commodity price environment.
"This is an exciting time for Arrow and we look forward to
providing further updates in due course."
RCE-2 Well
The RCE-2 well was successfully spud on 2 April 2022. The well
is targeting a large, three-way fault-bounded structure with
multiple high-quality reservoir objectives. The well is expected to
be drilled to a total depth of 8,146 feet (True Vertical
Depth).
Drilling and casing of the RCE-2 well is expected to take
approximately three weeks, followed by completion, and then
testing. Depending on the number of zones encountered in the well
bore, testing is expected to take approximately five days per
zone.
The Company will continue to provide additional updates on the
RCE-2 and RCS-1 wells as appropriate.
2022 Corporate Outlook: Colombia
Rio Cravo Este (Tapir Block; Arrow 50% WI)
In addition to the RCE-2 and RCS-1 wells, the Company is
evaluating the potential for the recompletion of the RCE-1 well in
additional zones to increase production. Assuming success at RCE--2
and RCS-1, the Company will evaluate potentially drilling a fourth
well (provisionally referred to as the RCE-4 well) at Rio Cravo
Este.
With regards to RCE-1, three recompletion candidates have been
identified, including the upper C7 sand, the Gacheta D sand, and
the Gacheta B sand. Arrow believes that secondary zones such as the
C7C and Ubaque offer additional recompletion potential. Should the
partners on the Tapir Block decide to proceed with the recompletion
of the RCE-1 well, the potential timing for execution of the
activities would be during Q3 2022.
Assuming success at RCE-2 and RCS-1, RCE-4 will be considered so
as to potentially further increase production and maximize
recoveries from all zones. Should the partners on the Tapir Block
decide to proceed with RCE-4, the potential timing for spudding the
well would be during Q3 2022.
Carrizales Norte (Tapir Block; Arrow 50% WI)
The Company has received a preliminary survey report regarding
several options for the construction of an access road, including a
portion of the road which would potentially be upgraded and a
portion which would be newly constructed, to the location of the
pad for the first well at the Carrizales Norte prospect.
The Company is pleased to report that all of the preliminary
road options presented to it are within the Company's initial
capital cost expectations.
Once the survey report is finalized the partners on the Tapir
Block anticipate making a decision on the optimal access road,
engaging with the communities and landowners, filing the requisite
applications, and commencing initial construction activities.
The Company has also contracted a 3D seismic processing company
to reprocess the existing 3D seismic over the Carrizales Norte
prospect.
Oso Pardo (Santa Isabel Block; Arrow 100% WI)
The Company continues to experience good production performance
and strong netbacks from its three wells at Oso Pardo - Morsa-1,
Oso Pardo-1 and Oso Pardo-2. Current production is approximately
120 bbls/d, and field-level netbacks for the month of April 2022
are projected to be approximately US$62/bbl.
With regards to the potential for obtaining an aerial extension
of the Santa Isabel Block, the Company is continuing to advance the
process towards resubmitting the application to the Agencia
Nacional de Hidrocarburos (ANH) in Colombia, with the objective of
resubmitting the application during Q2 2022.
Capella (Ombu Block; Arrow 10% WI)
Arrow continues to benefit from its share of production from the
Capella Field. The Company continues to engage in discussions with
Emerald Energy, the operator, with regards to the strategic options
for the Company's 10% interest in this asset, including but not
limited to a potential sale of the interest to Emerald Energy. The
Company considers its interest in the Ombu Block to be non-core to
its strategy in Colombia.
2022 Corporate Outlook: Canada
West Pepper (Arrow 100% WI)
The Company continues to experience good production performance
and strong netbacks from the West Pepper natural gas well, which
was brought on-stream in December 2021. Current production is over
3.4 MMcf/d (568 boe/d), and field-level netbacks for the month of
April 2022 are projected to be approximately C$2.50/GJ.
Canadian natural gas prices remain robust, with April 2022
natural gas futures contracts at the AECO hub (the benchmark for
natural gas prices in Canada) trading at C$5.12/GJ as of 1 April,
2022, compared to the December 2021 average of C$3.99/GJ.
East Pepper (Arrow 100% WI)
Arrow is in discussions with a leading Canadian natural-gas
producer on potentially tying the East Pepper well into their
pipeline and facilities infrastructure. Discussions are continuing,
and Arrow expects to make a future announcement with regards to the
potential timing and costs associated with tying-in the East Pepper
well.
Concluding Remarks on Outlook
As of 31 March 2022, the Company's corporate production was
estimated to be approximately 1,103 boe/d. All of the activities
outlined in this announcement are in support of the Company's
stated objective of achieving a production rate of 3,000 boe/d
within 18 months of the closing of its previously-completed AIM
placing and listing (completed in October 2021).
The Company will continue to provide additional updates on the
initiatives outlined as appropriate.
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
AECO hub: the AECO hub gas storage facility in southern
Alberta
Bbl: barrel of oil
Bbls/d: barrels of oil per day
boe/d: barrels of oil equivalent per day
GJ: gigajoule
MMcf/d: million cubic feet per day
WI: working interest
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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