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Arrow Exploration Corp. Announces Commercial Discovery at Danes-1 and Provides Operational Update

V.AXL

Canada NewsWire

CALGARY, Dec. 7, 2018 /CNW/ - ARROW Exploration Corp. (operating in Colombia via its 100% owned subsidiary Carrao Energy S.A.) ("Arrow" or the "Company") (TSXV: AXL) is pleased to announce test results of the Danes-1 exploration well located on the LLA-23 Block in the Llanos Basin of Colombia. The Danes-1 exploration well was perforated and tested in the Gacheta D2 Sand which was one of three prospective zones identified by logs.  After stabilizing the well conditions at 19:00 hours on December 3, 2018 using a 64/64" choke, a 24-hour test was performed where the well averaged 939 barrels of oil per day ("bbl/d") with negligible water cut (less than 0.1%) using an Electric Submersible Pump ("ESP") operating at a frequency of 30 hz and was brought up to a peak flow rate of 1,186 bbl/d (water cut less than 0.1%) at an ESP frequency of 34.5 hz. Danes-1 has been placed on production with the oil processed through Arrow's 100% owned facilities at Pointer. The Danes-1 exploration well targeted various reservoir intervals within the Danes prospect, situated approximately 8 kilometers to the north of Arrow's production facilities at Pointer.

Danes-1 Results

Danes-1 was spud on October 25, 2018 and reached a total depth of 11,276 feet measured depth ("ft md") within the Ubaque Formation. The top of the Gacheta D2 Sand reservoir was penetrated at a depth of approximately 11,012 ft md, and the Gacheta D3 Sand reservoir at approximately 11,046 ft md. Danes-1 encountered 43 feet ("ft") of net oil pay in the following reservoirs: 10 ft of net oil pay in the Gacheta D2 Sand with an average porosity of 28%, 10 ft of net oil pay in the Gacheta D3 Sand with an average porosity of 18%, and, 23 ft of net oil pay in the Ubaque with an average porosity of 22%. Additional thinner zones of potential pay were also interpreted in a lower C7 sandstone Formation. The Gacheta was perforated in the D2 Sand and was brought up to a peak flow rate of 1,186 bbl/d of 32 degree API oil with 0.1% water cut, 24,680 cubic feet per day of gas and a Gas Oil Ratio ("GOR") of 21 standard cubic feet per barrel of oil toward the end of a 24-hour production test.

Danes Forward Plans

Should the performance of the Danes-1 well support the drilling of an offsetting development well, a license is currently in place to do so. The Danes-1 well has been tied into Arrow's 100% owned production facilities at Pointer and will immediately add approximately 900 bbl/d to Arrow's corporate production which stood at approximately 1,450 boe/d prior to Danes-1 being placed on production.

Operational Update

Operations have commenced on the first well of a planned 10-well workover program to be conducted over the next 10 weeks. The program consists of: four recompletions and one pump change on Arrow's 100% owned LLA-23 Block in the Llanos Basin, one pump change on Arrow's 100% owned Santa Isabel Block in the Middle Magdalena Basin, and, four workovers on the VMM-2 Block in the Middle Magdalena Basin where Arrow owns a 40% working interest.

About ARROW Exploration

Arrow Exploration Corp. (operating in Colombia via its 100% owned subsidiary Carrao Energy S.A.) is a publicly-traded company with a portfolio of premier Colombian oil assets that are underexploited, underexplored and offer high potential growth. The Company's self-funding business plan is to rapidly expand oil production from some of Colombia's most active basins, including the Llanos, Middle Magdalena Valley (MMV) and Caguan/ Putumayo Basin. The asset base is 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, including without limitation statements relating to estimated production rates from the Company's properties and intended work programs and associated timelines as well as oil pricing. 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. 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.

View original content: http://www.newswire.ca/en/releases/archive/December2018/07/c2596.html



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