Arrow Exploration Corp (AIM: AXL; TSXV: AXL) has brought its latest Mateguafa appraisal well into production, boosting output as the company continues to expand operations in Colombia.
The Mateguafa HZ12 well, known as M-HZ12, was drilled on time and under budget to a total measured depth of 13,824 feet and encountered multiple hydrocarbon-bearing zones.
Production from the well began on 16 April from the Carbonera C9 formation, where approximately 30 feet of net oil pay was identified. During clean-up operations, the well reached peak production of 668 barrels of oil per day gross before stabilising at a restricted rate of around 564 barrels per day gross, equivalent to 282 barrels net to Arrow.
Additional hydrocarbon potential was also identified in the Carbonera C7 formation, where the well encountered around 15 feet of net oil pay.
Including the contribution from M-HZ12, Arrow’s total gross corporate production has now risen to approximately 5,000 barrels of oil equivalent per day.
The drilling rig has since moved to the Icaco pad, where the Icaco 1 exploration well was spudded on 5 May as part of the company’s ongoing drilling campaign. Arrow added that it held approximately US$24.2 million in cash at the start of May and remains debt free.
Marshall Abbott, CEO of Arrow commented:
“The continued success of the Mateguafa wells reinforces the materiality of the Mateguafa field to Arrow. Future work at Mateguafa will include both horizontal and vertical development wells, workovers and co-mingling.”
“The Icaco prospect has been developed by the Arrow team using both 2D seismic and the more recently shot 3D seismic program. The Icaco prospect demonstrates the same technical scope and repeatability of the play type that has proven to be highly successful for Arrow in the Tapir Block in the Llanos Basin of Colombia. Management looks forward to updating shareholders on the progress at Icaco in the near term.”
“Arrow aims to maintain a strong balance sheet with a healthy cash position, no debt and significant cash flow. This provides a stable platform with optionality to pursue both organic growth and accretive acquisitions.”
