Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF) said results from the first horizontal well on the Ubaque formation at Carrizales Norte in Colombia had exceeded expectations.
On the Carrizales Norte "B" pad, the new well, CNB HZ-1, is flowing at a restricted rate of 3,150 barrels a day gross and 1,575 net to Arrow with less than 1% water cut while still recovering load fluid.
CNB HZ-1, on the Tapir Block where Arrow holds a 50% beneficial interest, is the first of four expected horizontal wells planned for 2024.
Arrow added that a stabilised rate will be established after the first few weeks of production.
CNB HZ-1 was spud on May 14 and reached its target depth of 8,448 feet on June 7, 2024.
The drill rig has been moved to the second cellar on the Carrizales Norte B Pad where Arrow plans to drill a dedicated water disposal well (CNB-2).
Arrow added the RCE-1 water disposal well conversion on the Rio Cravo Este pad is complete and the disposal well is operational.
The conversion of the CN-4 well to a water disposal well is also progressing, it added.
The CN-4 and CNB-2 water disposal wells are expected to be capable of disposing of sufficient water volumes to enable the entire Carrizales Norte field development.
Elsewhere, the Morsa 1 well in the Oso Pardo field, which experienced downhole equipment failure, is back in production, adding approximately 75 BOPD net.
In total, Arrow said the current net corporate production is approximately 3,600 BOE/D, inclusive of CNB HZ-1.
Once the additional water handling capacity is available, Arrow added that the existing wells on both the RCE and CN platforms will be produced more aggressively.
Arrow's cash position was approximately US$12.1 million on June 1, 2024, with no debt.
Marshall Abbott, Arrow’s chief executive, said: "The initial success of the first horizontal well at the CNB pad, which is currently exceeding expectations, is an important milestone in the development of the hydrocarbon-dense Ubaque formation.
“The horizontal technology proven by this well can now be used to exploit further prospects on the Tapir block, and potentially the Oso Pardo block."
"Construction of the Baquiano pad is complete and the company plans to move the Petroworks 1500 HP rig to the Baquiano pad once the current drilling program has been completed at the CNB pad."