Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF) has reported a notable advancement in its operations at the Carrizales Norte (CN) field, located in Colombia’s Tapir Block, part of the Llanos Basin. The company owns a half stake in the project.
Arrow announced that the CN-1 well, drilled in the CN field, has yielded promising results, underscoring the field’s productive potential. The well reached its objective depth on May 11, 2023, having been spud just ten days earlier. The drilling process revealed multiple hydrocarbon-bearing strata, including around 26 feet of net oil pay in the C7 formation.
“Our anticipation about the early production from the CN-1 well is high, as it has surpassed our forecasts,” stated Marshall Abbott, Arrow Exploration’s CEO. “The substantial pay zones in the Carbonera C7 formation and extra pay zones behind pipe offer us more prospects for boosting production and reserves.”
In a 62-hour production test on the C7 formation, the CN-1 well displayed encouraging performance. Average oil rates recorded during the test were 662 BOPD gross for the first flow period, 902 BOPD gross for the second, and 1,134 BOPD gross for the third. The well peaked at a rate of 1,272 BOPD, settling at a final stabilized rate of 1,134 BOPD gross.
“The test outcomes point to the well’s potential for greater rates, which we will establish in the upcoming weeks of production,” added Abbott.
Besides the CN-1 well, Arrow Exploration shared updates on its impending drilling endeavours and existing operations. The CN-2 well, which started drilling on June 15, 2023, is projected to take about three weeks to finish. Following the production commencement of the CN-2 and CN-3 wells, the rig will be relocated to the Rio Cravo Este field for additional exploration.
The company also highlighted the successful conclusion of the West Tapir 3D seismic acquisition program and plans for a subsequent program in Tapir block’s southern region later in the year. As of June 1, 2023, the company reported a cash balance of $11.2 million.
The management of the company expressed a positive outlook for the future, with plans to carry out a third-party reserve assessment of the CN field upon completion of the present drilling program.
Arrow Exploration, operating via its subsidiary Carrao Energy S.A., is intent on boosting oil production in Colombia’s active basins, such as the Llanos, Middle Magdalena Valley, and Putumayo Basin. The company’s significant working interests and exposure to Brent-linked light oil pricing result in appealing operating margins.
