TIDMAXL
RNS Number : 7204C
Arrow Exploration Corp.
13 October 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.
OPERATIONS UPDATE AND EXERCISE OF WARRANTS
CALGARY, October 13, 2022 - Arrow Exploration Corp. (AIM: AXL;
TSXV: AXL) ("Arrow" or the "Company"), is pleased to provide an
operations update.
Operations Update
Rigs and equipment are currently moving into place for the Q4
tie in, workover and drilling program.
-- East Pepper tie-in
o All licences and approvals have been received
o Tie-in work began on September 28
o Production expected to begin by the end of October
o Expected IP rate of 1,000 boe/d and the Company expects
typical production declines thereafter
-- RCS-1 and RCE-1 Workovers:
o Workover rig began mobilization on October 11
o The rig expected is to arrive at the Rio Cravo field by the
end of this week
o Workover program on RCS-1 and RCE-1 expected to begin shortly
thereafter and be completed by early November
o The workover program will add production from the C7 stringer
and C7A units at RCS-1 and the C7 stringer at RCE-1. This program
is expected to have a material impact on overall RCE production
o Management expects the two workovers to add in excess of
500boe/d.
-- RCE-3 and RCE-4 Development Drilling:
o Rig mobilization to the Rio Cravo field expected to begin
mid-November, as the rig has been delayed by the previous
operator.
o RCE-3 expected to spud in December. Expect drilling and
completion to take circa one month with first production
anticipated in early 2023
o RCE-4 will follow immediately after completion of RCE-3
o RCE-3 and RCE-4 are infill development wells with initial
productivity rates estimated to be similar to the C7 and C7
Stringer production at RCE-2
-- Carrizales Norte
o Drilling at Carrizales-1 and -2 is anticipated to begin in Q1
2023
Corporate production as of October 11, 2022, is approximately
1,500 boe/d. Production from the RCE-2 well is approximately 550
bbls/d net (1,100 bbls/d gross) producing from the C7A and C7
stringer zones. Production from the RCS-1 well is approximately 170
bbls/d net (340 bbls/d gross) from the C7B zone. As set out above,
organic production growth is expected from the workovers of RCE-1
and RCS-1, and the development drilling of RCE-3 and RCE-4 wells to
further exploit known hydrocarbon accumulations. Current production
from the RCE-1 and RCS-1 wells is ahead of forecast in
aggregate.
The West Pepper well, owned 100% by Arrow and located in Canada,
is producing 280 boe/d currently, with production curtailed due to
third party facility constraints. Management expects that
production will return to approximately 400 boe/d in early Q4 2022.
Arrow is currently working on the tie-in for the East Pepper gas
well in Canada (100% owned by Arrow). This second well, along with
continuing and expected robust natural gas prices in North America,
is expected to further enhance the value of the Pepper field.
In addition to the 3D seismic survey Arrow purchased earlier
this year, the Company intends to execute on a 130 square kilometer
3D seismic survey on the northwest section of the Tapir block in
Colombia. This will further delineate low risk exploration fault
structures that have been identified on 2D seismic data and, if
successful, will provide material running room through 2023
onwards. The shooting of this seismic survey is expected to begin
in Q1 2023.
Marshall Abbott, CEO of Arrow Exploration Corp., commented:
"Arrow is excited about the upcoming capital program and expects
material production and reserve additions. The Arrow team continues
to execute our strategy to increase shareholder value"
Exercise of Warrants and Total Voting Rights
The Company also announces that pursuant to the receipt of
notices for the exercise of warrants issued in October 2022, it has
issued 400,000 new common shares of no par value ("Common
Shares").
Application has been made for the 400,000 new Common Shares to
be admitted to trading on AIM ("Admission"). It is expected that
Admission will occur on October 17, 2022. Following Admission, the
Company will have 216,575,741 Common Shares in issue with voting
rights and admitted to trading on AIM. This figure may be used as
the denominator for the calculations by which they will determine
if they are required to notify their interest in, or a change to,
their interest in the share capital of the Company under the
Financial Conduct Authority's Disclosure Guidance and Transparency
Rules.
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
Gordon Hamilton +44 (0)20 7523 8000
Auctus Advisors (Joint Broker)
Jonathan Wright (Corporate) + 44 (0)7711 627449
Rupert Holdsworth Hunt (Broking)
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. 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".
Cautionary Statement
This press release contains various references to the
abbreviation "BOE" which means barrels of oil equivalent. Where
amounts are expressed on a BOE basis, natural gas volumes have been
converted to oil equivalence at six thousand cubic feet (Mcf) per
barrel (bbl). The term BOE may be misleading, particularly if used
in isolation. A BOE conversion ratio of six thousand cubic feet per
barrel is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a
value equivalency at the wellhead.
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
Bbl/d: Barrels per day
Boe/d: Barrels of oil equivalent per day
Working Interest Gross Reserves: The reserves attributable to
the Company's license working interest pre-taxes and royalties.
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. The recovery and reserve estimates
provided in this news release are estimates only, and there is no
guarantee that the estimated reserves will be recovered. Actual
reserves may eventually prove to be greater than, or less than, the
estimates provided herein. In certain of the tables set forth
above, the columns may not add due to rounding.
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END
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