Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF) told investors it has spud of the CNB HZ-1 well, its first horizontal well at the Tapir project in Colombia.
The well is targeting the Ubaque formation, following up previous wells in the area earlier this year.
The CNB HZ-1 well will be drilled down to a vertical depth of 8,400 feet, with a horizontal length of 1,800 feet. Arrow expects to bring the well online for production in June.
Chief executive Marshall Abbott highlighted that horizontal wells are expected to deliver “a step change” in production and they will be “transformative” for the company.
"Spudding Arrow's first horizontal well at the CNB pad is a significant milestone in Arrow's development plan for the hydrocarbon-dense Ubaque reservoir,” Abbott said in a statement.
“After the Carrizales Norte discovery, we determined that the Ubaque reservoir could be developed most efficiently using horizontal drilling technologies and the successful spudding is a result of a year of preparation and geological, seismic, engineering and simulation work."
Abbott added: “The Q1 2024 well program has helped determine the extent of the Ubaque zone, both proving that the sands are continuous, thick and permeable, and adding to reserves at the Carrizales Norte field.”
Arrow is planning further drilling Also in the second half of 2024 at the Baquiano and Mataguafa sites.
Additional horizontal wells are also slated for the CNB pad towards the end of the year.
Arrow noted it is also in the initial planning stages for a 3D seismic programme aimed at further developing the Icaco and Macoya Este leads on the Tapir block.
The company said that, at the start of May, it had $12.4 million of cash and no debt.
It is scheduled to release its first quarter 2024 results at the end of May.