CALGARY, April 26, 2019 /CNW/ - ARROW Exploration
Corp. ("Arrow" or the "Company") (TSXV: AXL) is pleased to announce
it has contracted the Weatherford 839 rig which has spud the Rio
Cravo Este-1 ("RCE-1") exploration well on the Tapir Block in the
Llanos Basin of Colombia. RCE-1
has been identified via 3-D seismic and is targeting a large,
three-way fault-bounded structure with multiple high-quality
reservoir objectives. The well is expected to be at total depth of
8,000 feet True Vertical Depth within 30 days. Drilling RCE-1 is
expected to satisfy Arrow's earn-in commitment for a 50% Working
Interest in the Tapir Block, which has no additional spending
commitments nor land relinquishments for approximately 20
years.
Gary Wine, CEO of Arrow
commented, "We're extremely pleased to have initiated our second
exploration well in Colombia,
RCE-1, on the Tapir Block. The RCE-1 well follows the Company's
first exploration well, Danes-1, which was a multiple pay discovery
on our LLA- 23 Block to the northwest. Drilling RCE-1 will fulfill
the Company's earn-in commitment on Tapir, which is strategically
located approximately 25 kilometers southeast of Arrow's oil
processing facilities at Pointer on LLA-23. If RCE-1 is
successful, multiple development locations are anticipated as the
Rio Cravo Este structure is considerably larger than the structure
drilled at Danes. As a follow up, multiple fault trends and leads
outside of the area with existing 3-D coverage on Tapir have been
identified with 2-D seismic. These prospects will be more clearly
defined with the completion of an extensive new 3-D seismic survey
which Arrow plans to acquire over the next 12 months."
Non-core Asset Sales
Arrow is also pleased to announce it has entered into Definitive
Agreements to sell two non-core interests in Colombia for an aggregate sale price of $5mm
US, subject to adjustments. The first sale, for $3.5mm US, subject to adjustments, is expected to
close on April 29, 2019, with the
formal legal transfer of ownership of working interests subject to
ultimate approval by the Agencia Nacional de Hidrocarburos (ANH).
The second transaction, for $1.5mm
US, subject to adjustments, is anticipated to close this fiscal
quarter, subject to satisfaction of certain conditions precedent.
Combined production for the disposed assets averaged approximately
75 bbl/d for Q1 which equates to a sale metric of $66,000 US per flowing barrel. Transaction
proceeds, in combination with cash set aside for drilling, are
expected to fully fund drilling RCE-1. Furthermore, these
transactions are expected to eliminate approximately $7mm US from
Arrow's future commitments.
Operational Update and Year-End Financials
Arrow intends to release an operational update along with
year-end financials on April 30,
2019.
About ARROW Exploration
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 under-exploited,
under-explored and offer high potential growth. The Company's
business plan is to rapidly expand oil production from some of
Colombia's most active basins,
including the Llanos, Middle Magdalena Valley 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 seasoned team is led by a hands-on and in-country executive
team supported by an experienced board. Arrow is listed on
the TSX Venture Exchange under the symbol "AXL".
Reader Advisory
Neither the TSX Venture Exchange (TSXV) nor its regulation
services provider (as that term is defined in the policies of the
TSXV) accepts responsibility for the adequacy or accuracy of this
release.
This press release contains certain forward-looking
statements within the meaning of applicable securities laws.
Forward-looking statements are frequently characterized by words
such as "plan", "expect", "project", "target", "intend", "believe",
"anticipate", "estimate" and other similar words, or statements
that certain events or conditions "may", "should" or "will" occur.
In particular, this news release contains forward-looking
statements and information relating to drilling at RCE-1, seismic
acquisition and results, and closing of sale transactions. Although
Arrow believes that the expectations and assumptions on which the
forward-looking statements and information are based are
reasonable, undue reliance should not be placed on the
forward-looking statements and information because Arrow cannot
give any assurances that they will prove to be correct. Since
forward-looking statements and information addresses future events
and conditions, by their very nature they involve inherent risks
and uncertainties. Forward-looking statements are based on the
opinions and estimates of management at the date the statements are
made and are subject to a variety of risks and uncertainties and
other factors that could cause actual events or results to differ
materially from those projected in the forward-looking statements,
including but not limited to drilling at RCE-1, future exploration
at Rio Cravo Este, seismic acquisition and results, expectations
and assumptions concerning Arrow's ability to develop the assets
and obtain the benefits thereof, the ability to efficiently
integrate the assets, results of operations, performance, delays or
changes in plans with respect to exploration and development or
capital expenditures, failure to obtain necessary regulatory
approvals for planned operations, health, safety and environmental
risks, delays associated with or a failure to complete the sale
transactions and expectations and assumptions concerning ANH
approval. Arrow cautions that the foregoing list of risks and
uncertainties is not exhaustive. The Company cannot assure that
actual results will be consistent with these forward-looking
statements. They are made as of the date hereof and are subject to
change and the Company assumes no obligation to revise or update
them to reflect new circumstances, except as required by
law.
SOURCE ARROW Exploration Corp.