Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF) has confirmed that the Carrizales Norte 1 (CN-1) well has successfully encountered some 148 feet of net oil pay across three zones.
The exploration company, in a statement, told investors that drilling had reached target depth in CN-1 in the Llanos basin, Colombia. It was drilled to a depth of 9,190 feet.
It cut three hydrocarbon-bearing intervals – the Carbonera C7 sands measured 26 feet of net pay, the Gacheta formation has 64 feet of net pay, and the Ubaque formation spanned 58 feet.
The company noted that plans for a testing and completion programme is currently under review.
“The CN-1 discovery is an extremely important and material event for Arrow and is further evidence of the potential of the Tapir block,” said chief executive Marshall Abbott.
“All primary targets in the well have clear indications of oil pay and have the potential to greatly increase the company's reserves and production.”
He added: “Arrow plans to test several zones over the following weeks and then make a decision on which zone to bring on production.
“Our expectation is that the CN wells will behave in a similar manner to the [company’s] RCE wells, quick to payout with triple digit IRRs providing positive cashflow for the company during a high commodity price environment.
“This is a very exciting time for Arrow, and we look forward to providing further updates on our progress."