TIDMAXL
RNS Number : 5892Y
Arrow Exploration Corp.
04 January 2024
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 PROVIDES OPERATIONS UPDATE AND 2024 GUIDANCE
RCE-7 and RCE-8 C7 on production
CALGARY, January 4, 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 operations and provide guidance
moving into 2024.
CORPORATE & 2024 BUDGET
The Company exited 2023 with a production rate exceeding 3,200
boe/d net.
Arrow's Board of Directors has approved the 2024 work program,
which includes 15 wells and a $45 million net capital budget. The
entire capex budget will be financed by current cash reserves and
operating cash flow. The 2024 budget focuses on the Tapir block and
the development of the Carrizales Norte (CN) field. The Company
expects to employ two rigs for the entire year on the Tapir block
with a third rig being utilized as required. The capex emphasis is
focused on development and infill drilling combined with targeting
low-risk exploration prospects.
The Company plans to drill three horizontal wells at CN
penetrating the 110 feet of oil column proven up by the initial
three wells drilled in the Ubaque reservoir in 2023. The Company
also plans on drilling four Carbonera C7 vertical wells at CN on a
broad structural high. Both zones have proven to be prolific
producers in the initial drilling phase. Another vertical well at
CN will focus on production out of the Ubaque which will give the
Company additional information on the direction of the planned
horizontal wells. In addition to the development of CN, Arrow will
be focusing on low-risk exploration, with wells spread across the
Mateguafa prospect, a step out from the initial Mateguafa
discovery, (that has produced 600,000 barrels to date), the
Baquiano prospect, which is believed to be technically identical to
the Carrizales Norte discovery, and the Carrizales Noroeste
prospect that will test the hydrocarbon-charged structure west of
the main fault at CN. In isolation, each prospect has potential, on
its own, to add materially to production, reserves and cash
flow.
The Tapir Block in the Llanos Basin of Colombia, where Arrow
holds a 50 per cent beneficial interest, currently has 11 producing
wells including the latest wells to be drilled, Rio Cravo Este 7
(RCE-7) and Rio Cravo Este 8 (RCE-8). Both RCE-7 and RCE-8 were
completed in the C7 and brought on production during the last
quarter of 2023. RCE-7 and RCE-8 are exceeding expectations with
combined production of over 1,700 BOPD gross (850 BOPD net). The
RCE complex has produced 1.7 million barrels in the last 12 months
and additional development locations are planned.
Oso Pardo and Capella
The Oso Pardo-3 and Oso Pardo-4 wells on the Oso Pardo field in
the Middle Magdalena Valley Basin of Colombia, where Arrow has a
100 per cent working interest, were drilled and tested
successfully. During the testing phase for both wells, Management
determined that there was reservoir damage due to high mud weight
used in drilling. Original OP wells were ultimately stimulated with
positive results. Arrow expects the reservoir stimulations to take
place early in the first quarter of 2024 and for the wells to be
put on production. Production from Oso Pardo 1 was offline at
year-end due to a hole in the production pipe. Management expects
to turn the well back on in early 2024 once the workover is
complete.
Capella remains offline, while discussions continue between the
operator and local communities.
Marshall Abbott, CEO of Arrow commented:
"Arrow is proud of the work completed and results for 2023, our
average production rates more than doubled over the year and the
Company proved it was able to execute an aggressive capital work
program. The Company believes it is capable of similar production
growth in 2024. Arrow discovered a new, multi-zone, core area and
enjoyed a positive step change in reserves. Arrow was also able to
complete a 100 square km 3D seismic program and develop numerous
new prospects.
"In 2024 the Company plans to continue the high-paced growth
profile with development drilling in the Ubaque and Carbonera
formations. The 2023 results demonstrate that the Carbonera remains
a solid high-volume producer while the Ubaque formation has proven
production that extends beyond the CN complex. Multiple development
locations are anticipated based on current results, including
horizontal drilling in the Ubaque reservoir in the CN field.
Horizontal wells typically produce at materially higher rates with
marginal cost increases compared to a vertical well, increasing
recovery and the economics of thick pay oil fields. As well,
additional development drilling is contemplated from the RCE
pad.
"Arrow's fully funded, low risk drilling program for 2024
continues to build momentum across our extensive portfolio. Arrow
is poised to achieve significantly higher production and
commensurate cash flow through the 2024 calendar year.
"The Board of Directors appreciates the successful work of our
dedicated employees in Calgary and Bogota and the support from our
patient shareholder base."
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
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
Kirsty Duff
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
BOE/D: barrels of oil equivalent per day
BOPD: barrels of oil 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.
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").
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END
UPDSSAEEDELSEEF
(END) Dow Jones Newswires
January 04, 2024 02:00 ET (07:00 GMT)
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