Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF) has announced the start of production from its Alberta Llanos discovery, part of the Tapir Block in Colombia, with the first well now flowing.
The AB-1 well, which spud on 30 November, reached its target depth of 9,960 measured feet on 13 December.
Drilling confirmed the productive potential of the multi-pool field, with multiple hydrocarbon-bearing intervals encountered.
Initial production from the Ubaque formation commenced on 24 December. Over its first seven days, the AB-1 well produced an average of 658 barrels of oil per day (BOPD) gross, or 329 BOPD net, with a 49% water cut. The company highlighted the formation's clean sandstone with an average porosity of 25%.
"Initial production from the AB-1 exploration well is an exciting event for Arrow,” chief executive Marshall Abbott said in a statement.
“In addition to the thick pay zones encountered in the Ubaque formation, additional pay zones currently behind pipe, the C7, Gacheta and Guadalupe, provide further opportunities for production and reserves increases."
"The Alberta Llanos discovery is material to Arrow and we are looking forward to the results of the AB-2 and AB-3 wells which will help to determine the size and extent of the pools and the potential reserves additions. Initial results indicate that the Alberta Llanos discovery will result in another core area for Arrow and set up parameters for future horizontal development drilling."
On Christmas day, the AB-2 well was spud and it has since reached its target depth of 10,795 measured feet. Logging and evaluation of productive sands are currently underway.
Arrow plans to begin drilling the AB-3 well immediately after the completion of AB-2.
Elsewhere, the company is also working towards the start of a 3D seismic programme in March.
Abbott added: "We look forward to providing further updates on this low-risk development drilling program."
"2024 was a fantastic year of growth and infrastructure development for the business. I wish to thank the entire Arrow Team and their families for the tireless work and dedication to the growth of the company and creating shareholder value."
The company noted that as of 1 January its cash balance stood at $19.1 million.
Group production, inclusive of AB-1’s volumes, saw a peak of 5,175 barrels of oil equivalent per day and for the month of December averaged 4,899 boepd.