Arrow Exploration today provides an update on the Rio Cravo Este-6 ("RCE-6") well on the Tapir Block in the Llanos Basin of Colombia where Arrow holds a 50% beneficial interest, and the Oso Pardo-3 well on the Oso Pardo field in the Middle Magdalena Valley Basin of Colombia where Arrow has a 100% working interest.

RCE-6

The Company has completed the RCE-6 well in the Carbonera C7 formation and the well has been put into production. The well penetrated a 16 ft pay zone in a high quality upper Carbonera C7 sand, with a porosity of 27%. The well is currently flowing, with the ESP turned off, at 834 BOPD gross (417 BOPD net) of 29.8 API gravity.  As reservoir stewards, the Company will conservatively produce at rates that allow for maximum oil recoveries and optimal production rates.

After penetrating the Carbonera C7, the RCE-6 well continued drilling and encountered pay in the Ubaque formation.  In the Ubaque formation the well penetrated 7 ft of high quality pay , with an estimated porosity of 24%. The Ubaque zone was tested for 78 hours and reached a production rate of 393 BOPD gross (197 BOPD net) of heavy crude oil of 13.3° API with a water cut of less than 10%. The Ubaque formation was shut in after the test and the well was completed in the Carbonera C7 formation. The Ubaque discovery in RCE-6 is expected to add reserves and future production to Arrow.

Initial production results are not necessarily indicative of long-term performance or ultimate recovery. 

The Gacheta formation was not tested in the RCE-6 well. 

Tapir Forward Work Program

The Rio Cravo Este-7 well ("RCE-7") spud on November 14. This development well is targeting the multizone pay stack within the RCE fault bounded structure. As well, upon RCE-7 being placed on-stream, the RCE 8 development well will be drilled to further evaluate the multizone potential that has evolved from the RCE structure.

The drilling rig is then expected to return to the Carrizales Norte field ("CN") to begin a multi well program. Priority vertical locations will focus on exploitation of the material Ubaque discovery. Upon completion of the dedicated horizontal well pad, a series of horizontal wells will be drilled with a second rig to efficiently exploit the Ubaque reservoir. Pad completion is expected in Q1 2024. The existing Carrizales Norte vertical pad will focus on testing the Carrizales Nor Oeste prospect directly adjacent to the Ubaque discovery. Horizontal drilling is expected to commence in late Q1 2024 once the pad is ready. As previously disclosed the Ubaque Sand reservoir is 60 feet thick over a large area and is tailor made for horizontal well exploitation.

Oso Pardo - 3

The Oso Pardo-3 ("OP-3") well spud on October 27 and has reached TD in the Umir formation. The well penetrated multiple pay zones totaling 53 ft of net pay in high quality sands, with an average porosity of 23%. Initial 3D seismic and log interpretation indicates OP-3 has proven up additional locations within the existing  100%-owned Oso Pardo Block.

OP-3 is currently being completed and the Company plans to give further updates once this well is put on production in the next couple of weeks.

The Company plans to drill a second well, Oso Pardo-4, once the Oso Pardo-3 well is on production. 

Marshall Abbott, CEO of Arrow commented:
"The RCE-6 test results in both the Ubaque formation and Carbonera are material and exciting for the Company. The results demonstrate that the Carbonera remains a solid high volume producer while  the Ubaque formation has proven production that extends beyond the Carrizales Norte complex. Multiple development locations are anticipated based on current results, including horizontal drilling in the Ubaque reservoir in the Carrizales Norte field.  Horizontal wells typically produce at higher rates, increasing recovery and the economics of heavy oil fields."

"Arrow's fully funded, low risk drilling program continues to build momentum across our extensive portfolio, where we aim to have four additional development wells on production before the end of 2023. We are also encouraged by the interpretation of the Tapir 3D seismic and look forward to providing further updates in due course."

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