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Arrow Exploration Announces Planned Tie-In of West Pepper Well, Alberta and an Update on the AIM Listing and Offering Process
Calgary, Alberta--(Newsfile Corp. - August 11, 2021) -  ARROW Exploration Corp. (TSXV: AX...
About this update from Arrow Exploration Corp.
[{"type":"text","content":"Arrow Exploration Announces Planned Tie-In of West Pepper Well, Alberta and an Update on the AIM Listing and Offering ProcessCalgary, Alberta--(Newsfile Corp. - August 11, 2021) -  ARROW Exploration Corp. (TSXV: AXL) (\"Arrow\" or the \"Company\") announces that it intends to tie-in the 3-26 well located at West Pepper, Alberta, and provides an update on the previously announced AIM listing and offering process.Tie-in of West Pepper Well, AlbertaArrow is pleased to announce that it has begun the process to tie-in the behind-pipe natural gas from the 03-26-52-23W5 exploration well (the \"3-26 Well\") located at West Pepper, Alberta. As referenced in the Company's press release of April 7th, 2021, in February 2021 the Company retained the services of an independent oil & gas engineering consultant (the \"Consultant\") to assist Arrow in preparing an economic analysis (\"Analysis\") of a tie-in of the 3-26 Well. In summary, the conclusions of the Analysis included:Estimated on-stream costs of approximately C$1.3 million;An estimated initial production rate of 5.5 MMscf/d from the 3-26 Well; Rapid payback of the tie-in costs and positive cashflow from the tied-in well; and No expected natural gas plant capacity constraints.Front-month AECO natural gas futures contracts are currently trading at approximately C$3.40/GJ and strip prices are in excess of C$2.95/GJ for the next 12 months, indicating a capital payback period of less than 4 months from the start of production, as estimated by the Company.Readers are cautioned that the Analysis was not prepared in accordance with the reserve reporting requirements of National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities (\"NI 51-101\").The material assumptions and calculations of the Analysis included:Capital and operating costs, gathering, processing, and sales information and fees, and regulator and surface land requirements as of the time of the Analysis;Recoverable gas was calculated using volumetric gas-in-place and recovery factors appropriate to Montney tight gas fields with enhanced permeability layer and supported by analogue well performance in the Montney Smoky field;Capital costs were estimated assuming standalone well costs;Existing pipeline rights-of-way for the 3-26 Well have expired and will have to be re-surveyed and re-acquired; andDeposi...