Arrow Exploration Corp V.AXL

From Joe

[EagleHasLanded]

All wells on our current Oso Pardo land position can be reached by our existing pad.

On our current land position we have identified 4 wells.  Drilling those wells may help us identify further locations.

On the extension area we believe there are 20+ well locations that will require 3-4 pads to develop.

Hope that helps

Thanks

Joe

[EagleHasLanded]

In the future we will recomplete RCE-1.  RCE-1 was drilled and put on production in 2019.  It was the discovery well at RCE and produced from the C7.  Today it is still producing, however, it has high water cut and it is only producing approximately 100 bblsof oil per day gross (50 bbls of oil per day net).   We will contract a workover rig and are

[EagleHasLanded]

Joe on Capella: Government, communities and the operator, Emerald, are still having meetings and discussions.  It seems the government is unwilling to bring in the military to help with protesters, and has made promises of social improvements in the area.    An agreement could be made at any time, but at this point it seems like the parties are still far apart.   When

[EagleHasLanded]

Once we complete the analysis and data merge work we will have a better understanding of the prospects on the Tapir block.  We will be showing models of the 3D in our presentation.   Thanks Joe  

[EagleHasLanded]

There are very few M&A comparatives in Colombia over the last few years.  It would really be speculation on my part.   You could look at comparatives in other jurisdictions to give you an indication.    We are having an independent reserve evaluator look at the Carrizales Norte field and hope to have a news release on the reserves that the field holds soon.  

[EagleHasLanded]

Many thanks for your response and the added detail. I would appreciate your further response on a couple of points below:   1) Legal costs - this is a concern to shareholders currently - are you able to please clarify the nature of these disputes i.e are any potential claims being made against the company (and if so, what for, and whether any financial provisioning has been deemed

[EagleHasLanded]

From Joe:   Testing for CN-3 continues at this time.  Once the rig has been released from CN-3 it will move down to RCE.  The first new well at RCE will be a C7 well.  Then two Gacheta wells are planned.  All three should be down before the end of the year.   Thanks  Joe Good news I recon Testing for CN-3 continues at this time.  Once the

[EagleHasLanded]

At Carrizales Norte there are three major faults.  The Tapir block has many faults.   In western Canada and the US there are many years or horizontal experience.  The rule of thumb is that horizontal wells (depending on the length of the horizontal section) cost 1.5 times as much as a vertical well and produce 3 times as much hydrocarbons.  Horizontal wells have had very

[EagleHasLanded]

The Sept presentation should be on our website today once the guys from Calgary get to the office.     The Guadalupe has never been tested in the CN wells but you can see from the CN well logs that there is pay in Guadalupe zone.     Obviously the Ubaque and C7 are a bigger prize right now, but the Guadalupe has produced in the Carrizales filed to our south.  It

[EagleHasLanded]

Yes – mobilization for RCE has begun.   As the rig is taken down, trucks begin taking parts of it to the new pad.  The same trucks then drive back to CN to get more of the rig to take to RCE.   Thanks Joe

[EagleHasLanded]

  We are very happy with the CN-3 well.  It is still flowing (ESP is still turned off).  Watercut is still less than 1%.  Looks like a very good well so far.   You are correct, some of the other wells have shown decline and some of our wells are off unexpectedly waiting for workovers (Oso Pardo).  Capella is still off production as well.   The good news is that

[EagleHasLanded]

he rig move takes a few weeks.  The actual distance between the two pads is only 3-4 km, however, the road is closer to 20km.  The rig needs to be completely disassembled and it takes 90 truck loads to move it to the new location.   The RCE-6 well is scheduled to spud before the end of September.   Thanks Joe