Arrow Exploration Corp. (AIM: AXL; TSXV: AXL) the high-growth operator with a portfolio of assets across key Colombian hydrocarbon basins, is pleased to provide an update on the Carrizales Norte-3 (“CN-3”) well on the Tapir Block in the Llanos Basin of Colombia where Arrow holds a 50% beneficial interest.
The Company has completed the previously announced testing of the Carbonera C7 formation in the CN-3 well and the well has been put into production. The well penetrated a 23 foot pay zone in a high quality upper C7 sand, with an estimated porosity of 25%. An electric submersible pump (ESP) has been inserted and the well was initially producing at an average rate of 1,149 BOPD gross (575 BOPD net) of light crude oil of 33° API with a water cut of less than 0.5% over a 22 hour period. To efficiently manage the reservoir, and prevent premature water breakthrough, the ESP has been shut off and the well is naturally flowing. A 23/128 choke is being used to ease production back to a target of 640 BOPD gross (320 BOPD net). The Company maintains the optionality to increase production once the well has stabilized.
Initial production results are not necessarily indicative of long-term performance or ultimate recovery.
The Gacheta formation was not tested in the CN-3 well. Management plans to test the Gacheta formation at Carrizales Norte in future wells.
Forward Work Program
The rig has commenced mobilization to the Rio Cravo Este (“RCE”) field where Arrow plans to further exploit the multi-zone RCE structure with two dedicated Gacheta wells and a follow up to the RCE-6 C7 producer. The drilling rig is then expected to return to the Carrizales Norte field (“CN”) to begin a multi horizontal well project. Management plan to target the proven Ubaque formation at CN with six horizontal wells. Plans are to spud the first horizontal well in early 2024.
Field operations and production continue to improve. Current production, including CN-3, is between 2,800 and 3,000 BOE/D net. Capella production, approximately 280 BOPD, remains shut-in, waiting on government and operator meetings with communities in the area. Two wells at the Oso Pardo field, approximately 80 BOPD in aggregate, are shut in waiting routine maintenance. To minimize capital requirements, Management will use the same rig to conduct this maintenance program and for drilling operations on Oso Pardo 3 and 4. The rig is expected to arrive at the Oso Pardo field in mid-October.
Marshall Abbott, CEO of Arrow commented:
“The CN-3 testing results of the C7 formation have confirmed that the Carrizales Norte field is transformational for the company. Multiple development locations are anticipated based on current results, including horizontal drilling in the Ubaque reservoir. Horizontal wells typically produce at higher rates, increasing recovery and the economics of heavy oil fields.”
“Arrow’s fully funded, low risk drilling program continues to build momentum across our extensive portfolio, where we aim to spud five additional development wells between now and year-. We are also encouraged by the initial interpretation of the Tapir 3D seismic and look forward to providing further updates in due course.”
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