Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF) told investors it now intends to put the newly drilled Carrizales Norte-1 (CN-1) well straight into production, via the C7 and C7A reservoir zones.
It comes after a further "very successful" test of the Ubaque pay zone, which yielded some 1,100 barrels of oil per day (bopd), and results from the Gacheta zones, which were present but not productive in this location.
The C7 zones last month tested at rates in excess of 1,000 bopd and the company described the zones as having “excellent reservoir characteristics”.
"Our expectation is that the Carrizales Norte wells will be quick to payout in the current oil price environment and add to shareholder value,” said chief executive Marshall Abbott.
He added: “The Carrizales Norte-1 discovery in both the C7 and Ubaque reservoirs are extremely important and material events for Arrow with both the C7 and Ubaque reservoirs exceeding expectations.
“These results expand and accelerate the Carrizales Norte development plan beyond three wells.
“As well, Arrow is planning to complete a new reserve report once the Carrizales Norte-2 and 3 wells have been completed.”
As soon as production has been established from the CN-1 well, the company’s drill rig and team will move on to the Carrizales Norte-2 (CN-2) location for the next drill programme.
Arrow noted that through CN-1, it saw a reduction in drill time (from spud to target depth) and said that its drilling costs have been consistently under budget.
“This is a very exciting time for Arrow, and we look forward to providing further updates on our progress," Abbott told investors.