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ARROW ANNOUNCES SECOND UBAQUE HORIZONTAL WELL
RESULTS
CNB HZ-3 on production
CALGARY, July 31, 2024 - 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 operational activity, particularly at the multi horizon,
Carrizales Norte ("CN")
field on the Tapir Block in the Llanos Basin of Colombia where
Arrow holds a 50 percent beneficial interest.
CNB
HZ-3
The second of the Ubaque horizontal wells planned for
2024 is now on production. The second horizontal well on the
Carrizales Norte "B" pad (CNB HZ-3) is exceeding expectations and
is being restricted to a current flow rate of 3,038 BOPD gross
(1,519 BOPD net to Arrow) with less than 6.5% water cut while still
recovering load fluid. Please note initial production flows
are not necessarily indicative of long-term performance or ultimate
recovery and a stabilized production rate will be determined in the
first few weeks of operations, in keeping with conservative
reservoir management. Further updates will be provided in due
course.
CNB HZ-3 was spud on July 4, 2024, and reached a
target depth of 8,457 feet (true vertical depth) on July 18,
2024. The well was drilled to a total measured depth of
12,320 feet with a horizontal section of approximately 3,050 feet.
CNB HZ-3 came on production on July 26, 2024, with the use of an
electric submersible pump (ESP) and, based on initial results, has
displayed the same reservoir characteristics as CNB HZ-1.
CNB
HZ-1
The CNB HZ-1 is continuing to perform above
expectations and is being restricted to a current flow rate of
2,220 BOPD gross (1,110 BOPD net to Arrow) with approximately 34%
water cut.
CNB HZ-1 average production for the first 30 days of
production (IP30) was 2,650 BOPD gross (1,325 net).
Drilling
Time and Costs
From spud to rig release the CNB HZ-1 took 30 days
and cost approximately $4.9 million gross ($2.45 million net to
Arrow). The CNB HZ-1 well paid out in under 30 days.
Drilling operations at the CNB HZ-3 well took 21 days from spud to
on production and cost approximately $4.0 million gross ($2.0
million net to Arrow). The improvement represents the
learnings taken from CNB HZ-1 as the operations team continues to
focus on improving capital and operating costs and creating
further shareholder value.
Upcoming
Drilling
The rig has been moved to the fourth cellar on the
Carrizales Norte B Pad where the Company has spud the third
horizontal well (CNB HZ-4). Thereafter, the Company
expects to drill the fourth horizontal well on the B pad, followed
by the Baquiano-1 exploration well, which is on trend with the
Carrizales Norte field. Following the drilling program at
Baquiano, Arrow plans to return to the CNB pad for two additional
horizontal wells.
Water
Disposal Update
The conversion of the CN-4 well to a water disposal
well is complete and injection has commenced. The CNB-2 water
disposal well has been completed and is awaiting stimulation work
and regulatory approval prior to starting injection.
Corporate
Update
Current net corporate production is approximately
4,560 BOE/D, inclusive of CNB HZ-1 and CNB HZ-3.
Arrow's cash position was approximately $11 million
on July 1, 2024. Although Arrow has an aggressive capital
program, the Company has maintained a healthy balance sheet with no
debt.
Marshall Abbott, CEO
of Arrow commented:
"The continued success of the horizontal well program
at the CNB pad, has led the Company to plan two additional
horizontal wells which Arrow intends to drill before the end of
2024, depending on technical aspects and regulatory
approvals. This will result in a total of six horizontal
wells at Carrizales Norte in 2024 with additional horizontal wells
being planned in 2025 from a third pad. The horizontal
program continues to exceed expectations and to add production and
reserves from the hydrocarbon-dense Ubaque formation. The Arrow
team strives to reduce the time and costs needed to drill
horizontal and vertical wells. Internally generated
development drilling and completion strategies will be used to
exploit further prospects on the Company's land holdings."
"The production rates from the CNB HZ-1 well are
exceeding the simulation results and the CNB HZ-3 well was drilled,
completed and brought on production under budget. The Company is
excited about the initial results of the well and the potential to
further grow reserves and production."
"Production infrastructure including water disposal
wells, dispersion fields and roads continue to be developed to
increase production and prepare for the 2025 capital program."
For further
Information, contact:
Arrow
Exploration
|
|
Marshall Abbott, CEO
|
+1 403 651 5995
|
Joe McFarlane, CFO
|
+1 403 818 1033
|
|
|
Canaccord
Genuity (Nominated Advisor and Joint Broker)
|
|
Henry Fitzgerald-O'Connor
James Asensio
George
Grainger
|
+44 (0)20 7523 8000
|
Auctus Advisors
(Joint Broker)
|
|
Jonathan Wright
|
+44 (0)7711 627449
|
Rupert Holdsworth Hunt
|
|
Camarco (Financial
PR)
|
|
Andrew Turner
|
+44 (0)20 3781 8331
|
Rebecca Waterworth
|
|
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 was 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.
This Announcement contains inside information for the
purposes of the UK version of the market abuse regulation (EU No.
596/2014) as it forms part of United Kingdom domestic law by virtue
of the European Union (Withdrawal) Act 2018 ("UK MAR").