Arrow Exploration Corp (TSX-V: AXL, AIM: AXL, OTC: CSTPF) announced to investors that its third horizontal well, CNB HZ-4, at the Carrizales Norte project’s B pad, is producing more than 2,500 barrels of oil per day.
Drilled starting July 28 and reaching its target depth in early August, the well has now commenced production.
This result exceeds expectations, with Arrow highlighting that production levels are still rising.
The company also mentioned that a stabilized production rate will be assessed during the initial weeks of operation.
“The horizontal well program at the CNB pad is surpassing expectations,” stated Chief Executive Marshall Abbott. “The Company now plans to drill two additional horizontal wells before transitioning to the Chorreron prospect (formerly Baquiano). This will bring the total number of horizontal wells at Carrizales Norte to six in 2024, with further wells planned for 2025.”
Abbott added, “Our team is successfully reducing drilling time and costs for both horizontal and vertical wells through internally developed drilling and completion strategies.”
In its second-quarter update, Arrow reported a net income of $1.2 million, marking a significant turnaround from a $0.8 million loss in Q2 2023. The company also achieved $15.1 million in revenue, reflecting a 47.25% increase year-over-year. As of June 30, 2024, Arrow reported a strong cash position of $10.8 million and no debt.
Abbott commented, “Arrow has seen substantial growth in production, revenue, and earnings, all while advancing the highly successful horizontal well program at Carrizales Norte. This includes the vertical well program in Q1 and Q2 to delineate the Ubaque reservoir and the development of infrastructure such as pads, roads, oil transportation, and water disposal.”
Looking ahead, Abbott outlined the focus for the remainder of 2024, which includes completing the six-well horizontal program at Carrizales Norte and drilling a low-risk exploration well at Chorreron. The company is also considering the addition of a second rig for development drilling at the RCE field later in the year.
For 2025, Arrow plans an aggressive capital program aimed at production growth and exploration. This includes drilling low-risk exploration wells at Mateguafa Oeste, Capullo, and Mateguafa Attic, as well as further horizontal Ubaque and vertical C7 development drilling at Carrizales Norte, contingent on success at Chorreron. Additionally, development vertical wells will be drilled at Rio Cravo Este.
“This enhanced capital program highlights the prolific nature of the Tapir Block in Colombia’s Llanos Basin, which shows significant hydrocarbon density across multiple oil-bearing zones down to 10,000 feet,” Abbott concluded.
