Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF) has announced significant progress in operational activity at the Carrizales Norte (CN) field in Colombia, which is located in the Tapir Block within the Llanos Basin. Arrow holds a 50% beneficial interest in the project.
The company said the CN-1 well, which was drilled into the CN field, has yielded positive results, confirming the field's productive potential. The well reached its target depth on May 11, 2023, after being spud on May 1, 2023. Multiple hydrocarbon-bearing intervals were encountered during drilling, with approximately 26 feet of net oil pay in the C7 formation.
"We are excited about the initial production from the CN-1 well, which has exceeded our expectations," said Marshall Abbott, CEO of Arrow Exploration in a statement. "The thick pay zones in the Carbonera C7 formation and additional pay zones behind pipe provide us with further opportunities for production and reserve increases."
During the production test on the C7 formation, conducted over a 62-hour period, the CN-1 well exhibited promising performance. The average oil rates during the test were 662 barrels of oil per day (BOPD) gross for the first flow period, 902 BOPD gross for the second flow period, and 1,134 BOPD gross for the third flow period. The well peaked at a rate of 1,272 BOPD, with a final stabilized rate of 1,134 BOPD gross.
"The testing results indicate the well's capability for higher rates, and we will determine the ultimate flow rate in the coming weeks of production," Abbott added.
In addition to the CN-1 well, Arrow Exploration updated on its upcoming drilling activities and ongoing operations. The CN-2 well, which commenced drilling on June 15, 2023, is expected to take three weeks to complete. Once the CN-2 and CN-3 wells are in production, the rig will move to the Rio Cravo Este field for further exploration.
Arrow Exploration also highlighted the completion of the West Tapir 3D seismic acquisition program and plans for a second program in the southern part of the Tapir block later this year. The company's cash balance as of June 1, 2023, stood at $11.2 million.
The company's management expressed their optimism for the future, with plans to undertake a third-party reserve evaluation of the CN field after completing the current drilling program.
Arrow Exploration, through its subsidiary Carrao Energy S.A., is focused on expanding oil production in Colombia's active basins, including Llanos, Middle Magdalena Valley, and Putumayo Basin. The company's high working interests and exposure to Brent-linked light oil pricing contribute to attractive operating margins.
Contact the author at jon.hopkins@proactiveinvestors.com