Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF) is seeing “operational success” on the Tapir Block in the Llanos Basin of Colombia, according to analysts at Canaccord Genuity (TSX:CF, LSE:CF).
The energy firm reported earlier that its second well in the company's 2023 drilling programme at the Rio Cravo Este field (RCE) on the Tapir licence reached total depth (TD) at 8,053 feet true vertical depth (TVD).
The well found good oil reservoir, and the company expects it to come onstream in late March as previously guided, analysts at Canaccord noted.
RCE-4 encountered six hydrocarbon bearing intervals with total net oil pay of 45 feet measured depth – a little less than the previous RCE-3 well, Canaccord analysts wrote, but importantly, the target Carbonera reservoir in RCE-4 had 25 feet net oil pay over two intervals better than the 19 feet over three intervals in RCE-3.
In addition, four Lower Gacheta oil reservoir interval were encountered totalling net 20 feet oil pay.
“The company is now completing the C7 zone, which should be onstream in late March,” analysts wrote.
Meanwhile, RCE-3 is currently flowing naturally at 650 bopd gross rate, with no pressure drop and no water, analysts noted, adding that the next step is to activate the pump and adjust the lift to provide optimum well performance.
“This is a positive update for Arrow on RCE, with quick drilling continuing, successfully encountering reservoir (RCE-4) and ongoing good natural flow production and sensible well management (RCE-3),” Canaccord analysts wrote.
“Once RCE-4 is onstream we expect the company to drill and complete RCE-5 in April.”
Canaccord is maintaining its 'Buy' rating and C$0.65 (40p) target price on Arrow’s stock, which is currently trading around C$0.29 in Toronto.
Contact Angela at angela@proactiveinvestors.com
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