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Arrow Exploration Corp. Announces Operations Update

In This Article:

Calgary, Alberta--(Newsfile Corp. - January 27, 2022) - Arrow Exploration Corp. (AIM: AXL) (TSXV: AXL) is pleased to share an operational update, as well as near-term plans for its Colombian and Canadian assets.

Highlights

  • Production as of January 21st, 2022 was approximately 1,320 boe/d (net to Arrow), benefiting from rising Brent Crude oil prices and strong natural gas prices in Canada

    • 453 bbl/s oil production from Colombian portfolio

    • 868 boe/d gas production from Canadian portfolio

  • Organic growth opportunities advancing, with the RCE-2 well on the Tapir Block, Colombia expected to commence drilling in early March and the Company considering tie-in opportunities in Canada, given the success of the West Pepper well

  • Acquisition market remains robust, with the Company continuing to evaluate numerous opportunities

Colombia

Oil Production

The Company's Colombia oil production continues to benefit from rising Brent Crude oil prices. As of January 21st, 2022 the Company's production in Colombia included 137 bbl/s (net to Arrow) from the RCE-1 well (Tapir Block), 125 bbls/d from the Oso Pardo Field (Santa Isabel Block), and 191 bbls/d (net to Arrow) from the Capella Field (Ombu Block), for a total of approximately 453 bbls/d (net to Arrow).

Based on prevailing Brent Crude oil prices, Arrow expects its Colombian oil assets to generate approximately US$450,000 in cash flow in January 2022, prior to G&A expenses.

Upcoming Drilling

The Company continues to advance towards drilling the RCE-2 well on the Tapir Block. The partners on the Tapir Block (Arrow 50% : PetrolCo 50%) are undertaking the community socialization process, the procurement of supplies and services, as well as tenders for a drilling rig. Site preparations are expected to commence in the coming weeks.

Arrow expects the RCE-2 well to spud during the second week of March 2022.

While preparations for drilling the subsequent RCE-3 well are at an earlier stage, Arrow expects the RCE-3 to spud during April 2022.

The Company expects to provide a further update once more exact dates for the spudding of the RCE-2 and RCE-3 wells are confirmed.

Canada

As announced on December 13th, 2021 the Dalehurst 06-26-52-23W5 well ("West Pepper") located near Edson, Alberta, Canada was brought on stream.

West Pepper has continued to perform according to the Company's expectations, and following natural declines from the initial flush production levels, as of January 21st, 2022 the well was producing approximately 775 boe/d.

The Company is benefiting from currently robust natural gas prices in Western Canada. The February 2022 natural gas futures contracts price at the AECO hub (the benchmark for natural gas prices in Canada) was C$4.30/GJ as of January 24th, 2022, being approximately 11% higher than the nearest-month futures contract price of C$3.87/GJ as of the first day of production from West Pepper.