Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF) has delivered "material and exciting" results from the Tapir block in Colombia.
The Rio Cravo Este-6 (RCE-6) well at the Tapir block, within Colombia’s Llanos Basin, has now been put into production – after the well cut a 16-foot pay zone in the upper Carbonera C7 reservoir. It is presently flowing, without the pump, at a rate of 834 barrels of oil per day (417 bopd net to Arrow).
Arrow said the plan is to conservatively produce at rates that allow for maximum oil recoveries and optimal production rates.
RCE-6 also drilled the Ubaque formation which yielded a seven-foot pay zone which, in testing, flowed at a rate of 393 bopd (197 bopd net to Arrow), yielding a heavy oil product.
Elsewhere, drilling of the Oso Pardo 3 (OP-3) well reached target depth in the Umir reservoir formation, having penetrated multiple zones for a total of 53 feet of net pay. The well is currently being completed and is due to come online for production "in the next couple of weeks".
This week, meanwhile, drilling began on the Rio Cravo Este-7 well (RCE-7) and the company will next drill RCE-8. Arrow also intends to subsequently drill the OP-4 well.
"The RCE-6 test results in both the Ubaque formation and Carbonera are material and exciting for the company,” chief executive Marshall Abbott said in a statement.
“The results demonstrate that the Carbonera remains a solid high volume producer while the Ubaque formation has proven production that extends beyond the Carrizales Norte complex.
“Multiple development locations are anticipated based on current results, including horizontal drilling in the Ubaque reservoir in the Carrizales Norte field.
“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 have four additional development wells on production before the end of 2023.
“We are also encouraged by the interpretation of the Tapir 3D seismic and look forward to providing further updates in due course."
In Thursday’s early deals, Arrow shares traded around 5% higher at 18.10p each.