Page 15 - LatAmOil Week 48 2022

LatAmOil NEWS IN BRIEF LatAmOil

Operating netbacks quarter-over-quarter, low risk exploration prospects, which have the continues to clean up.
increased to $56.75 per boe in the third quarter potential to provide material production and RCE-3, RCE-4, and RCE-5 Infill Drilling:
of 2022 from $49.18 per boe in the second quar- reserves increases in the near term. The seismic Operations remain on track for RCE-3 to spud
ter of 2022 due to higher crude oil production project will highlight the reserves potential of the in late December/early January 2023, and mobi-
and better netbacks from natural gas sales. western section of the Tapir block. The Compa- lisation of the camp facilities is underway. Civil
Capital raised at the time of Admission to ny’s plans are to explore the east half of the Tapir works on the pad are nearing completion. Subse-
AIM has been deployed on a successful two block with a second seismic shoot in 2024. The quent to completion of RCE-3, both RCE-4 and
well drilling campaign at Rio Cravo on the Tapir Arrow Team continues to execute our strategy to RCE-5 will follow in sequence.
Block in Colombia, both of which were on pro- increase shareholder value.” Carrizales Norte: After drilling RCE-3,
duction for most of the quarter. Operations Update, Colombia, RCS-1 and RCE-4 and RCE-5, the same drilling rig will be
At the end of the quarter, positive working RCE-1 Workovers: The workover of RCS-1 and moved to the Carrizales Norte field.
capital position of $7.4mn and a cash position RCE-1 is in progress and the wells are continuing Currently, Arrow is building a road and pad
of $11mn. to clean-up. Due to electrical storms in the area for the Carrizales Norte field. The road and pads
Generation of positive cashflows in Q3 causing power outages, the clean-up of the wells are expected to be completed in mid-February
means that the Company is committing to a fur- is taking longer than expected. 2023.
ther drilling programme. RCS-1, the first well to be worked over, is cur- The spud of Carrizales 1 is anticipated to
Subsequent to Q3 2022, the Company also rently producing at 660 bpd of oil (gross), 330 begin in the latter part of Q1 2023 with Car-
completed two workovers to the RCE-1 and bpd of oil (net) with daily decreases to water cut rizales 2 expected to spud immediately thereaf-
RCS-1 wells and has tied in the East Pepper well. and corresponding increases in oil production. ter, followed by a contingent Carrizales 3.
Outlook: The Company expects to com- Prior to the workover, the well was producing Tapir Seismic: The Company has received all
mence drilling, around the end of 2022, the first 330 bpd of oil (gross). commensurate approvals to proceed with the
of five additional wells – three wells at Rio Cravo RCS-1 has shown a 330 bpd of oil (gross) 100 km2 seismic programme.
and two wells at Carrizales Norte on the Tapir increase since the recompletion procedure. The The Company is permitting and moving
Block. production gain results in payout of the worko- equipment and personnel to the programme
The Company anticipates the robust CAPEX ver cost in 17 days at current Brent prices. area on the west side of the Tapir field.
programme will be funded from cash on hand An upper unit in the Carbonara 7A was per- The estimated cost of the seismic programme
and cashflow from operations. forated and flowed 330 bpd of oil (gross) after is $5mn gross ($2.5mn net to Arrow) and is
Robust operational tempo ensures that the stabilising. Management believes a thin shale expected to provide multiple prospects beyond
Company is on track to achieve 3,000 bpd of oil barrier bifurcates the C7A. It is apparent that a what has been identified on the coarse 2D seis-
within 18 months of the AIM listing (H1 2023). thin shale break prevents inflow from the C7A mic grid.
Arrow continues to focus on shareholder main sand, which has superior reservoir char- Processing and interpretation of the seismic
value, improving its strong balance sheet, and acteristics akin to RCE-2. Arrow now plans to will take place over Q2 2023 with drilling plans
free cash flow. perforate the C7A in RCS-1 as it is the highest to be pursued in Q4 2023.
Marshall Abbott, CEO of Arrow Explora- reservoir in the pool. The Company expects that This robust operational tempo is expected to
tion Corp., commented: “We have initiated the RCS-1 should have a comparable flow rate to see the Company achieve 3,000 bpd of oil within
largest capital programme in the history of the RCE-2, where C7A is currently producing 1,025 18 months of the AIM listing (H1 2023). Fur-
Company. Arrow has successfully executed the bpd of oil (gross)/512 bpd of oil (net) with a flat thermore, the integrated seismic and geological
two workovers with production improving daily. water cut. data will provide significant running room for
The plan to add further perforations to RCS-1 RCE-1, the second recompletion, is continu- production growth on the Tapir Block.
provides additional and material production ing to show a high water-cut as it cleans-up. Prior Corporate Production: Corporate produc-
increase potential. The RCE infill drilling pro- to the workover, the C7A was flowing at 110 bpd tion in November 2022 to date ranges between
gramme will aid in achieving our 3,000 (net) of oil (gross) with a very high water cut. The 1,900 boepd and 2,000 boepd net. Total net pro-
[bpd of oil] production target in H1 2023. The C7A Stringer was then perforated and is slowly duction from the Rio Cravo field is 887 bpd of
low risk Carrizales Norte project has significant recovering. Production continues to increase oil. Contribution from the workover programme
production and reserve potential. In addition, daily, currently at 90-110 bpd of oil (gross), and continues to increase Rio Cravo’s production.
the West Tapir seismic project is expected to add water cut continues to decrease daily as the well Arrow Exploration, November 29 2022

Week 48 30•November•2022 www. NEWSBASE .com P15