Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF) told investors that its Rio Cravo Esta-5 well, in Colombia, has reached target depth and has encountered six hydrocarbon bearing intervals which together total around 90 net feet of oil pay.
The company, in a statement, said some 36 feet of net oil pay was recorded in the Carbonera C7 interval, whilst 54 feet of oil pay was measured in the Lower Gacheta interval.
“RCE-5 was drilled under budget and on time,” said Arrow chief executive Marshall Abbott. “The team continues to become more experienced in the play and this is resulting in cost and time savings.
"The net pay encountered in RCE-5 is one of the largest to date in the RCE field. We now have six wells drilled into the RCE structure and a very good understanding of the distribution of the various oil-bearing reservoirs we have encountered."
Arrow said it expects that the RCE-5 will now come online for production in early April 2023, and, will be followed by the drilling of the CN-1 well which is slated for spudding in late April or early May.
At the same time, the company noted, work is complete at the previously drilled RCE-3 which is now producing around 800 barrels of oil per day (bopd) gross - 400 bopd net to Arrow - following the installation of a pump. Meanwhile, the RCE-4 well is continuing to flow at- around 700 bopd gross - 350 bopd net.
Abbott added: “These wells continue to increase Arrow's production and reserves. Arrow will bring RCE-5 on slowly and increase production to best manage the oil reservoir as it continues to do with RCE-3 and RCE-4.
“Despite the lost production at the Capella field, Arrow is on a trajectory to exceed 3,000 BOPD in the near term. These wells are quick to payout providing positive cashflow for the Company during a high commodity price environment.
“This is an exciting time for Arrow, and we look forward to providing further updates on our progress.”
In London, Arrow shares open around 10% higher on the well news to change hands at 17.8p per share.