Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF) told investors that the Carrizales Norte 2 (CN-2) well at the Tapir Block project in Colombia could potentially produce at a rate of 1,400 barrels of oil per day (bopd).
The company, in a statement, noted that the well was spud on 15 June before reaching target depth of 9,474 feet on 23 June, and encountered multiple hydrocarbon-bearing intervals measuring 60 feet of net oil pay in the Ubaque formation.
Subsequent well testing saw the CN-2 well flow 1,012 barrels of fluid per day from the Ubaque formation and after 31 hours saw water cut stabilise at 3%. The oil was measured to have API gravity of 13.6 degrees and further analysis has determined that the well can produce at around 1,400 bopd.
Presently, based on most recent data, the company said the well is producing at a gross rate of around 680 bopd (340 bopd net) and the plan is to produce the well conservatively, at current rates.
This will ensure the highest estimated ultimate recovery and provides significant operational flexibility, Arrow said. Meanwhile, at the CN-3 well location, drilling is continuing according to schedule, the company noted.
"Production from the CN-2 well provides additional evidence that the CN field is a material discovery for Arrow,” said chief executive Marshall Abbott.
“Further to the thick pay zones encountered in the Ubaque formation, additional pay zones currently behind pipe provide further opportunities for production and reserve increases.
"The company is looking forward to the CN-3 well results which will help determine the size of the pools in the field and the potential reserves additions. Multiple development locations are anticipated based on current results.
“Arrow plans to undertake a third-party reserve evaluation of the CN field once the current three well drilling program is complete."
After CN-3, the plan is to move the drill rig on to the RCE field, where it will drill two wells to follow up the RCE-6 production well, before returning back to CN.
Abbott added: “There is strong momentum at Arrow, as we continue with our fully funded, low risk drilling program across our extensive portfolio with the spudding of two wells at the RCE structure targeting the Gacheta formation to follow drilling at CN-3.
“Alongside this we are encouraged by the initial interpretation of the Tapir 3D seismic and look forward to providing further updates in due course."
Some 134 square kilometres of 3D seismic has been successfully shot at the project, Arrow noted, with interpretation work underway and expected to be finalised over the next 60 days.
New appointment to board of directors
In a separate statement, Arrow also announced that Ian Langley, who has more than 35 years of experience as both an executive and director in various businesses in the UK and abroad, has accepted a position on the company's board of directors, effective on 1 August 2023.
Langley has founded, run and directed numerous private equity-backed companies including Airswift, where he currently sits as chairman of the board, and EPI Group where he sits as non-executive chairman. Currently, Langley also sits as the non-executive director of the Berry Group and Boston Energy Ltd.
Marshall Abbott commented: "From a business and finance perspective, Mr Langley brings to Arrow both broad, practical experience with a variety of public and private companies, and an in-depth expertise in financial regulations and processes. He is highly respected in his field, and we look forward to working with him in meeting our corporate strategic goals."