Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF) announced that its fifth Ubaque horizontal well, CNB HZ-6, at the Carrizales Norte field, has now been brought into production.
The well initially produced 2,250 barrels of oil per day (bopd) gross, 1,125 bopd net) before being fitted with an electric submersible pump, which has since helped sustain production at over 1,900 bopd gross (960 bopd net) with a 31% water cut.
"The initial production results from CNB HZ-6 are very encouraging and follow the positive trend of horizontal wells at the CNB pad continuing to surpass expectations,” chief executive Marshall Abbott said in a statement.
“Arrow's focus for the remainder of 2024 will be the completion of the sixth horizontal well in our program, CNB HZ-7 at Carrizales Norte, after which we will move to drill a low-risk exploration well at the Alberta Llanos prospect."
Also, Arrow reported that the field’s new water disposal facility was installed and has been operating since 2 November, and, will support an increase in pump rates across existing wells.
"Our water disposal facilities at the CNB pad began operations in early November which will significantly increase our ability to safely dispose of water and in turn reduce bottlenecks to future production and the need for trucking,” Abbott added.
“The water infrastructure will also allow us to increase production at the RCE and CN pads.
“After completing the six-well drilling program at Carrizales Norte we also expect to increase pump speed on the horizontal wells."
Arrow highlighted that its current corporate production now exceeds 5,305 barrels of oil equivalent per day (BOE/D).
Meanwhile, it noted that it holds over $18 million in cash as of 1 November.
Arrow is currently advancing its sixth horizontal well, CNB HZ-7, at Carrizales Norte, which will be followed by drilling at the Alberta Llanos prospect.
Looking ahead, Marshall Abbott told investors that the firm’s planning for the 2025 capital program is well underway – including the development of roads, pads and other civil works in the Tapir block.
The company boasts one of the lowest cost operators onshore Colombia, which Abbott says enables “superior payouts” to reinvest in a future foundation for growth.
“The 2025 program will consist of drilling of low-risk exploration wells at Mateguafa Oeste, Capullo, and Mateguafa Attic,” he added.
“In 2025, the Company is also targeting further horizontal Ubaque and vertical C7 development drilling at Rio Cravo Este, Carrizales Norte, and Alberta Llanos.
“Current plans are to utilize two drilling rigs in 2025 to accelerate development on the Tapir block."
"Our use of superior technologies in drilling, completions and production ensures maximum profitability at lowest cost.
“In particular, the advanced sensory technology used directly behind the drill bit ensures horizontal wells stay in "zone" for the length of the horizontal lateral. In addition, AICDs automatically reduce water cut and allow for prolonged and increased oil production.”