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.
Image: Onshore oil and gas pumps. Photo: courtesy of Vlado/FreeDigitalPhotos.net.
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.
Source: Company Press Release