TIDMAXL
RNS Number : 4865O
Arrow Exploration Corp.
01 February 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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Operations update, 2023 Capital budget and TVR
CALGARY, February 1, 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 operations update including its 2023
capital budget, and changes in total voting rights (TVR).
Operations Update
Drilling Rig Arrives at Rio Cravo Este Multiwell Pad
The contracted 1,500 HP drilling rig has arrived at the
multiwell pad at Rio Cravo Este (RCE). Arrow is poised to spud the
first of three low risk infill wells, RCE-3, within the next five
days. These wells are expected to take 12 days to drill and a
further 10 days to bring on-stream. Arrow expects RCE-4 and RCE-5
will be drilled immediately following RCE-3. As previously
reported, these infill wells have similar productivity potential to
RCE-2 and RCS-1 which are currently producing 850 BOPD net
combined, well above forecasted rates.
The Company is planning to drill two additional wells into the
Gacheta Sandstone reservoir in the fault bounded RCE structure.
RCE-2 tested rates exceeding 700 BOPD gross from the Gacheta
Sandstone. Dedicated Gacheta wells would likely spud in Q4 2023
after three Carrizales Norte (CN) wells have been completed.
Carrizales Norte Operations
Arrow continues construction of the road, pad and cellars for
the three planned CN wells. The road and pad are expected to be
complete in mid-February and the wells are expected to be drilled
immediately following RCE-5 and the mobilization of the rig to the
new pad.
3D Seismic Project, Tapir Block
As previously reported, Arrow has commenced the 134 square
kilometer 3D seismic project on the Tapir block. The 3D seismic
project is scheduled to be completed in Q1 2023.
Workover Program
Arrow is continuing to recomplete existing wells that display
additional production upside in unperforated zones. This program
has been successful in both the RCE field and the Oso Pardo Field.
The Company is also considering additional perforations on RCS-1
once RCE-3, RCE-4 and RCE-5 are completed and on production.
Current Production and Cash Balance
Average January Corporate production was approximately 1,800
boe/d. Short term outages due to weather at Ombu and Pepper
impacted production rates.
At December 31, 2022 Arrow's cash balance was approximately
US$13 million.
2023 Capital Budget
The approved 2023 capital budget for Arrow totals US$32 million
and is to be financed from current cash reserves and operating cash
flow. The capital program includes the following:
- 134 km2 3D seismic program
- 10 well drilling program including(1) :
o 3 C7 wells at RCE, each expected to add initial 300-500 bbls/d
net to Arrow
o 3 wells at CN, each expected to add initial 300-500 bbls/d net
to Arrow
o 2 Gacheta wells at RCE, each expected to add initial 200-400
bbls/d net to Arrow
o 2 wells at Oso Pardo, each expected to add initial 300-500
bbls/d net to Arrow
- Infrastructure including:
o Road and pad at CN
o Water disposal well conversion at RCE
Total Voting Rights
The Company also announces that it has issued 2,191,555 Common
Shares (the "New Common Shares") pursuant to the exercise of
warrants issued at the Company's IPO in October 2021. All the New
Common Shares issued during the month were issued under the
Company's existing block listing.
Following the issue of the New Common Shares the issued share
capital of the Company comprises 220,593,486 common shares with one
vote per share. Therefore, this figure can be used by shareholders
as the denominator for the calculations by which to determine if
they are required to notify their interest in, or a change to their
interest in, the Company under the FCA's Disclosure and
Transparency Rules.
(1) expected production rates are indicative only and there is
no guarantee the wells will be successfully drilled and put on
production.
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)
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".
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
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END
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