Arrow Exploration Set To Boost Output With New Multi-Well Drilling Campaign

Jim Gordon

Hi, I'm Jim Gordon and you're watching Market One Minute. Joining us is Marshall Abbott, CEO of Arrow Exploration Corp. Marshall, welcome!

Marshall Abbott

Great to be here, Jim! Thank you!

Jim Gordon

Great to have you, sir! Okay. I understand you're kicking off 2023 with a new drill program at Rio Cravo Este on the Tapir block. Tell us more about that.

Marshall Abbott

Certainly. We call it RCE to be brief, and we have a multi-well drilling program that's going to be completed by the end of the first quarter. These are very low risk infill development wells, based on the success we've had on the RCE structure to date.

Jim Gordon

Beyond the RCE wells, can you speak of Arrow's progress on its operation at the plan Carrizales Norte wells?

Marshall Abbott

Carrizales Norte is an exact look alike to the RCE full bounded structure, and is an extension of an existing oil field that's done eight and a half million barrels to date. We have very high resolution, high frequency seismic over the RCE structure, and we intend to drill three wells there. These wells, again, have the prolific potential of around 2,000 barrels a day each. We are currently constructing a road. That road is 70 per cent done, the pad is about 50 per cent done. These are all weather roads, so to ensure that we can operate through the rainy season.

Jim Gordon

And Marshall, do you have any updates for us on the operation within the Llanos Basin?

Marshall Abbott

We sure do, Jim. So, we intend to drill additional infill wells into the RCE structure, into a deeper horizon called the Gacheta. This is of course, after we've completed the three main Horizon producers in the Carbonera set. The Gacheta tested 600 barrels a day in the RCE-2 well. So, we're pretty excited with that. On top of that, we've got 134 square kilometre 3D seismic shoot currently underway. That'll be the largest 3D shot in the Llanos Basin in the last three years, we're very excited with the results of that 3D seismic survey.

Jim Gordon

And Marshall, back in October 2021, Arrow had set a target of 3,000 barrels per day within 18 months. Can you update investors on where you are in relation to this goal?

Marshall Abbott

Certainly. So, near the end of the quarter, we'll have three wells down at the RCE platform.

These are low risk infill development wells. Each one of these wells in isolation has the capacity to produce potentially a thousand to 2,000 barrels a day. Being good reservoir stewards, we're going to start off slowly and inch our way up to a sustainable level, so we have equilibrium with respect to oil production. As we approach the end of the quarter, we should be fairly close to breaching that 3,000 barrel a day number, that we've been toting since October a year ago.

Jim Gordon

And can you speak to the company's CAPEX trajectory in 2023 and the current cash position?

Marshall Abbott

Certainly. So today we're sitting on just under 14 million of cash US. We're cash flowing about 2 million a month. Our budgeted CAPEX for the year is 30 million. Most of that is utilized for drilling. About 5 million of that is for the 3D seismic shoot.

Jim Gordon

And finally, can you provide any updates with regards to the workover campaign Arrow has underway?

Marshall Abbott

Certainly, Jim, it's been very exciting for us. We've added 275 barrels a day net. Those wells paid out in about 17 days. We have additional workovers that we intend to pursue once the drilling rig is gone. So, the workovers combined with the wells at RCE and Carrizales Norte, will put us on a very decent trajectory with respect to production rates moving forward.

Jim Gordon

Marshall, thanks for joining us.

Marshall Abbott

Thanks, Jim. Happy to be here.

ABOUT ARROW EXPLORATION CORP.:  

Arrow Exploration Corp. (AXLAXL is a publicly traded company with a portfolio of premier Colombian oil assets that are underexploited, under-explored and offer high potential growth.

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