Arrow Exploration, the high-growth operator with a portfolio of assets across key Colombian hydrocarbon basins, provides an operations update.

Operations Update

Drilling Rig Mobilized to Rio Cravo Este Multiwell Pad
Arrow has initiated the drilling rig move to Rio Cravo Este (RCE) to further exploit the Carbonera Sandstone reservoir. Three additional infill wells will be drilled in Q1 2023 with RCE-3 expected to spud in January 2023. RCE-4 and RCE-5 will be drilled in sequence. The drilling rig was initially delayed due to a different operator experiencing operational issues. The infill wells have similar productivity potential to RCE-2 and RCS-1 which are currently producing 850 BOPD net, well above forecasted rates. RCE-2 was paid out in 37 days with an onstream net cost of $4.2MM.

Upon completion of the RCE-3, RCE-4 and RCE-5 wells, the Company is contemplating drilling two to three additional wells into the Gacheta Sandstone reservoir in the fault bounded RCE structure. RCE-2 tested rates exceeding 700 BOPD gross from the Gacheta Sandstone. Dedicated Gacheta wells would likely spud in Q3 2023.

Arrow has also completed preparation of an additional field to be used for production water dispersion. In combination, the two fields are expected to meet the Company’s water disposal requirements until a water disposal well is drilled which is expected mid-2023.

Carrizales Norte Operations
Earlier this month Arrow began construction of the road, pad and cellars for the three planned Carrizales Norte (CN) wells which are expected to be drilled sometime between March and June 2023. The road and pad being constructed are being built to meet all weather conditions. This will allow the Company to continue capital activities as well as move production in the summer and winter seasons.

The Company is in discussions with a separate drilling company to bring in a second drilling rig to drill CN1, CN-2 and CN-3. This would advance the drilling of Carrizales Norte by approximately six weeks.

3D Seismic Project, Tapir Block
Arrow has commenced the 134 square kilometer 3D seismic project on the Tapir block. Hiring in the local communities and the required surface land work began on schedule. The 3D seismic project is scheduled to be completed in Q1 2023. This 3D survey will define multiple fault-bounded structures which are the prevailing trapping mechanisms in the Llanos Basin. Existing 2D seismic data has indicated multiple leads on the Tapir Block and the 3D will resolve existing and additional leads and prospects. Initial drilling on defined low risk prospects could occur as early as Q4 2023.

Workover Program
Arrow is continuing to recomplete existing wells that display additional production upside in unperforated zones. This program has been successful in both the RCE field and the Oso Pardo Field. The Company is also considering additional perforations on RCS-1 once RCE-3 RCE-4 and RCE-5 are completed.