Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF) CEO Marshall Abbott has said the company is encouraged by the results of the Rio Cravo Sur-1 (RCS-1) well testing on the Tapir Block in the Llanos Basin of Colombia.
The RCS-1 well, which was spud on May 23, 2022, targeted a three-way fault bounded structure with multiple high-quality reservoir objectives on the Tapir Block in the Llanos Basin of Colombia. The well was drilled to a total measured depth of 8,656 feet (8,105 feet true vertical depth) and encountered six hydrocarbon-bearing intervals totaling 55 net feet of oil pay.
In a statement, Abbott commented: "We're encouraged by the material results of RCS-1, the third well on the Tapir block. RCS-1 identified new zones for further exploitation with flowing results returning better than expected."
READ: Arrow Exploration says RCE-2 well came into production on May 23, 2022; reports rise in 1Q revenue
He added: "We're currently completing the C7B zone, targeting to be on stream this week. This increases Arrow's production and reserves. The company intends to bring RCS-1 on slowly and increase production to best manage the oil reservoir.
"Arrow's current production is providing positive cashflow for the company during a high commodity price environment. Continued strong production rates from existing tied-in wells combined with the encouraging results from new drills in Colombia support the Company's objective of achieving a production rate of 3,000 boe/d (barrels of oil equivalent per day) within 18 months of its AIM listing (completed in October 2021). This is an exciting time for Arrow, and we look forward to providing further updates on our progress," the CEO concluded.
Specific production test rates for the isolated new zones (shallowest to deepest) include:
- Carbonera C7B: tested 1,872 barrels of oil per day (bopd) - net 936 bopd - peak rate of 30 API crude
- The zone was tested on June 22, 2022, for 33 hours at an average rate of 1,076 bopd - net 538 bopd
- Ubaque: tested 184 bopd - net 92 bopd - peak rate of 12-13 API crude
- The zone was tested June 13, 2022, for 38.5 hours at an average rate of 33 bopd - net 16.5 bopd
- The company said test results are not necessarily indicative of long-term performance or ultimate recovery
After the C7B test performance, the decision was made to put the C7B on production. Arrow said it decided not to test the up-hole C7 zones, and the Gacheta C, as they had been proven to be oil bearing in RCE-2. The test of the Gacheta B zone was cut short due to formation water production. The company said the RCS-1 well costs came in under budget.
Arrow Exploration - operating in Colombia via a branch of its 100% owned subsidiary Carrao Energy S.A. - is a company with a portfolio of premier Colombian oil assets that are underexploited, under-explored and offer high potential growth.
The company's business plan is to expand oil production from some of Colombia's most active basins, including the Llanos, Middle Magdalena Valley (MMV) and Putumayo Basin. The asset base is predominantly operated with high working interests, and the Brent-linked light oil pricing exposure combines with low royalties to yield attractive potential operating margins.
Arrow's 50% interest in the Tapir Block is contingent on the assignment by Ecopetrol SA of such interest to Arrow.
Arrow's seasoned team is led by a hands-on executive team supported by an experienced board.
Contact the author at jon.hopkins@proactiveinvestors.com