Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF) said its production run-rate exceeded 3,200 barrels of oil equivalent per day by the end of 2023, underlining its year of growth in which average rates more than doubled.
The company, which is developing fields in Colombia, is now looking ahead to a 2024 work programme that has 15 wells on the docket with a US$45 million capex budget that’s entirely funded by current cash reserves and operating cash flow.
"Arrow is proud of the work completed and results for 2023, our average production rates more than doubled over the year and the company proved it was able to execute an aggressive capital work program,” chief executive Marshall Abbott said in a statement.
“The company believes it is capable of similar production growth in 2024.”
Abbott added: “Arrow's fully funded, low risk drilling program for 2024 continues to build momentum across our extensive portfolio. Arrow is poised to achieve significantly higher production and commensurate cash flow through the 2024 calendar year.”
The focus is on the Tapir block and Carrizales Norte (CN) field development.
Three horizontal wells and seven vertical wells at CN aim to ramp up production capability, whilst additional ‘low risk’ exploration wells are also planned.
At Tapir, meanwhile, the company currently has interests in 11 producing wells – two of which (RCE-7 and RCE-8) were brought online in the final quarter of 2023. These wells are said to be exceeding expectations with combined production of over 1,700 bopd (850 bopd net to Arrow).
Further development drilling opportunities are also planned at Tapir’s Rio Cravo Este field.
High-paced growth profile
"In 2024 the company plans to continue the high-paced growth profile with development drilling in the Ubaque and Carbonera formations," Abbott said.
“The 2023 results demonstrate that the Carbonera remains a solid high-volume producer while the Ubaque formation has proven production that extends beyond the CN complex.
“Multiple development locations are anticipated based on current results, including horizontal drilling in the Ubaque reservoir in the CN field.
“Horizontal wells typically produce at materially higher rates with marginal cost increases compared to a vertical well, increasing recovery and the economics of thick pay oil fields. As well, additional development drilling is contemplated from the RCE pad.”
Elsewhere, at the Oso Pardo field, the company is planning to conduct reservoir stimulations of the Oso Pardo-3 and Oso Pardo-4 wells – which during testing were deemed to have reservoir damage (due to high mud weight used in drilling). This work is slated to take place in the first quarter prior to those wells coming online for production.