Arrow Exploration Corp has announced better than expected results from testing at the East Pepper well on the Pepper Block in the Alberta basin, Canada.
The production test for the Montney zone was run over a 27.8-hour period and natural gas production tested at a peak rate of 21,206 million cubic foot per day (mcf/d) - 3,534 barrels of oil equivalent per day (boe/d) - a stabilized rate of 9,220 mcf/d - 1,537 boe/d - and an average rate of 10,921 mcf/d - 1,820 boe/d, the company said.
Condensate produced over the test period was 24.27 barrels and the well had an average wellhead pressure of 3,276 psi over the test period, it added, cautioning that test results are not necessarily indicative of long-term performance or ultimate recovery.
The 100% working interest East Pepper well (100/14-21-052-22W5/3) was tested before tie-in activities began on August 30, 2022. The well is a horizontal multi-stage fractured well producing from the Montney zone on the Pepper block which was drilled, originally in 2014, to a total measured depth of 15,269 feet with a horizontal leg of 2,917 feet.
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Arrow said it expects that the tie-in facilities will be completed and the well will be put on production by the end of October 2022. The company expects typical production declines in the first few months and is accordingly sizing tie-in equipment for 7,000 mcf/d (1,167 boe/d).
In a statement Marshall Abbott, CEO of Arrow commented: "We're encouraged by the better-than-expected East Pepper production test, the second well on the Pepper block. We are particularly encouraged by the material flow rate and the strength and speed of pressure recovery after shut-in. Arrow holds a 100% interest in approximate 22,000 acres of undeveloped land at Pepper. This is our second well in the Montney formation on the Arrow asset. The well is expected to be put on production to take advantage of the typically higher natural gas prices that the winter brings."
"The next project that Arrow is focusing on is the recompletion of the RCE-1 and RCS-1 wells at the Tapir block in Colombia. Both recompletions involve bringing on additional zones in combination with existing production. This is an exciting time for Arrow, and we look forward to providing further updates on our progress," he added.
Arrow said 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 within 18 months of its AIM listing, which was completed in October 2021.
Arrow Exploration, operating in Colombia via a branch of its 100% owned subsidiary Carrao Energy S.A., has 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.
The company's 50% interest in the Tapir Block is contingent on the assignment by Ecopetrol SA of such interest to Arrow.
Contact the author at jon.hopkins@proactiveinvestors.com