Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF) announced that its Rio Cravo Este-2 well in Colombia has spudded.
In a wide-ranging update on the firm’s activities, CEO Marshall Abbott told shareholders that the news came at an “exciting time” for Arrow.
"We are delighted to have spud the second well at Rio Cravo Este, RCE-2, on the Tapir Block,” Abbott said.
Arrow told investors that the well is targeting a large, three-way fault-bounded structure with multiple high-quality reservoir objectives. The well is expected to be drilled to a total, true vertical depth of 8,146 feet. Once drilling and testing of the RCE-2 well are completed, the rig will move to the location of Arrow’s next well, the RCS-1 well (formerly the RCE-3 well), which is expected to spud in early May, according to the CEO.
"In addition, we are pleased to also provide a wider update across our portfolio, which is demonstrative of the significant work we have done to date; but also of the potential which remains,” Abbott added. “Our production remains strong at over 1,100 boe/d (barrels of oil equivalent per day) and continues to grow, producing positive cash flow for the company during a high commodity price environment.”
The group is evaluating the potential for the recompletion of the RCE-1 well in additional zones to increase production. If successful at RCE-2 and RCS-1, Arrow said it would evaluate potentially drilling a fourth well during the third quarter of 2022 at Rio Cravo Este.
Arrow also said that it had received a preliminary survey report for an access road at its Carrizales Norte well and is seeing “good production performance” from its three wells at Oso Pardo, both in Colombia.
It added that it continues to benefit from its share of production from the Capella Field, in which it owns a 10% stake.
In Canada, Arrow said it is in discussions with a significant Canadian natural gas producer on potentially tying in the East Pepper well to their pipeline and facilities infrastructure. At its West Pepper asset, Arrow told investors it is seeing good performance and strong netbacks.
The group is operating at a time when Canadian natural gas prices strengthen. In April 2022, natural gas futures contracts at the AECO hub were trading at C$5.12/GJ compared to the December 2021 average of C$3.99/GJ.
Calgary-based Arrow is aiming to hit a production rate of 3,000 boe/d within 18 months of the closing of its previously-completed London AIM placing and listing, which was completed in October 2021.
Contact Angela at angela@proactiveinvestors.com
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