TIDMAXL
RNS Number : 8970A
Arrow Exploration Corp.
30 May 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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RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION.
ARROW ANNOUNCES CN-1 WELL UPDATE
Testing Results from the Ubaque in the CN-1
CALGARY, May 30, 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-1 well
("CN--1"), an exploration well on the Tapir Block in the Llanos
Basin of Colombia.
CN-1
The CN-1 well was spud on May 1, 2023 and reached target depth
on May 11, 2023. CN-1 targeted a three-way fault bounded structure
with multiple high-quality reservoir objectives on the Tapir Block
in the Llanos Basin of Colombia. The well was drilled to a total
measured depth of 9,190 feet (8,511 feet true vertical depth) and
encountered 148 feet of cumulative net oil pay (128 feet TVD).
Arrow has completed the first test on the CN-1 well in the
Ubaque formation which has approximately 58 feet of net oil pay.
The pay zone is a clean sandstone exhibiting consistent 30%
porosity and high resistivities. A submersible pump has been
inserted in the well after perforating.
Specific data for the production test on the Ubaque formation
were as follows:
-- The production test was run over a 58-hour period.
-- The well was tested at three different flow rates to evaluate
productivity and to plan for water cut management.
o The first flow period was held for 23 hours and showed an
average oil rate of 491 bopd gross.
o The second flow period was for 18 hours and showed an average
oil rate of 861 bopd gross, and,
o The third flow period was held for 17 hours and showed an
average oil rate of 1134 bopd.
-- Oil production tested at a peak rate of 1,222 bopd, and a final stabilized rate of 1,134 bopd
In the final 24 hours of the test, CN-1 produced at a rate of
1,134 bopd gross (567 bopd net) of oil at 13.5 API and with a 28.3
% water cut (completion fluid). Water cut has been decreasing
throughout completion testing. Additional tests of the Gacheta and
C7 formations will proceed over the coming weeks, with production
forecast to commence in the second half of June 2023. The
Carrizales Norte-2 (CN-2) well will be drilled immediately upon the
CN-1 well being brought on-stream.
Initial production results are not necessarily indicative of
long-term performance or ultimate recovery.
Marshall Abbott, CEO of Arrow commented:
"The Carrizales Norte-1 discovery and the Ubaque test are
extremely important and material events for Arrow. The Ubaque test
- the first on the Carrizales Norte field - shows that oil from the
formation can be produced at high rates using conventional means.
The test is further evidence of the potential of the Tapir block in
the prolific Llanos Basin."
"After a brief flow and pressure build-up on the Ubaque, Arrow
plans to completion test additional pay zones in the Gacheta and C7
reservoirs over the coming weeks and then make a decision on which
zone to bring on production initially."
"Our expectation is that the Carrizales Norte wells will be
quick to payout in the current oil price environment with triple
digit IRRs, providing positive cashflow for the Company. This is a
very exciting time for Arrow, and we look forward to providing
further updates on our progress."
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. 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.
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END
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