Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF) today laid out plans for a six-well horizontal drill program for the Carrizales Norte (CN) field in Colombia, after the results of the CN-3 well confirmed the field as “transformational” for the company.
The vertically drilled CN-3 well has been under production testing, assisted by an electric submersible pump (ESP), and initially saw production at an average rate of 1,149 barrels of oil per day gross (575 barrels net to Arrow) of light crude oil – with the water cut measured at 0.5% over a 22-hour period.
The company said that the ESP has been shut off to efficiently manage the reservoir and prevent premature water breakthrough. It is now flowing naturally.
Using a choke, the well’s production is now being eased back up to a target rate of 640 BOPD gross (320 BOPD net).
Arrow said it retains the optionality to increase production once the well has stabilized.
The current drill program is ongoing, with the rig mobilizing to the nearby Rio Cravo Este (RCE) where three wells are slated.
At CN, the plan is to undertake a six-well horizontal drill program starting in early 2024.
"The CN-3 testing results of the C7 formation have confirmed that the Carrizales Norte field is transformational for the company,” chief executive Marshall Abbott said in a statement.
“Multiple development locations are anticipated based on current results, including horizontal drilling in the Ubaque reservoir. Horizontal wells typically produce at higher rates, increasing recovery and the economics of heavy oil fields."
Abbott added: “Arrow's fully funded, low risk drilling program continues to build momentum across our extensive portfolio, where we aim to spud five additional development wells between now and year-end.”
“We are also encouraged by the initial interpretation of the Tapir 3D seismic and look forward to providing further updates in due course."