Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF) told investors that its second Ubaque horizontal well, CNB HZ-3, is now on production.
Moreover, the well is performing above expectations - currently flowing at 1,519 barrels of oil per day (BOPD) net to Arrow, with less than 6.5% water cut.
Arrow added that the CNB HZ-1 well continues to perform above expectations, with a current flow rate of 1,110 BOPD net to Arrow.
"The continued success of the horizontal well program at the CNB pad has led the company to plan two additional horizontal wells which Arrow intends to drill before the end of 2024, depending on technical aspects and approvals,” chief executive Marshall Abbott said in a statement.
"The production rates from the CNB HZ-1 well are exceeding the simulation results and the CNB HZ-3 well was completed and brought on production under budget.
The CNB HZ-3 well was spud on 4 July 4, reached its target depth of 8,457 feet on 18 July, and began initial production on 26 July.
It has a total measured depth of 12,320 feet, including 3,050 feet of horizontal section. The well is operating with an electric submersible pump (ESP).
Arrow also highlighted that it continues to maintain a robust financial position, with approximately $11 million in cash as of 1 July, and no debt.
The CNB HZ-1 well programme took 30 days and cost approximately $4.9 million gross, $2.45 million net to Arrow, and, CNB HZ-3 well took 21 days from spud to production and cost $4.0 million gross ($2.0 million net).
Next in the campaign, Arrow noted that the rig has been moved to the fourth cellar on the Carrizales Norte B Pad, where CNB HZ-4 – the third horizontal well – has now been spudded.
After that, the fourth well on the pad is expected to follow.
Further drill plans for the campaign include the Baquiano-1 exploration well, which is on trend with the Carrizales Norte field, before a return to CNB for two additional horizontal wells.