Arrow Exploration, the high-growth operator with a portfolio of assets across key Colombian hydrocarbon basins, has provided an update on operational activity, particularly at the multi horizon, Carrizales Norte ('CN') field on the Tapir Block in the Llanos Basin of Colombia.
CNB HZ-5
The fourth horizontal well on the Carrizales Norte 'B' pad (CNB HZ-5) is now on production. The well has a current flow rate exceeding 2,700 BOPD gross (1,350 BOPD net to Arrow) and production is continuing to increase. Currently the well, which has been cleaning up over time, has an 11% water cut. Management's expectations are that the CNB HZ-5 well will achieve production rates similar to the Company's first three horizontal wells, and similar payback schedules of less than 2 months. Please note initial production flows are not necessarily indicative of long-term performance or ultimate recovery and a stabilized production rate will be determined in the first few weeks of operations, in keeping with conservative reservoir management. Further updates will be provided in due course.
CNB HZ-5 was spud on August 22, 2024, and reached a target depth of 8,472 feet (true vertical depth) on September 7, 2024. The well was drilled to a total measured depth of 13,350 feet with a horizontal section of approximately 4,070 feet. CNB HZ-5 came on production on September 15, 2024, with the use of an electric submersible pump (ESP) and, based on initial results, has displayed comparable reservoir characteristics to the other horizontal wells drilled on the CNB pad.
The CNB HZ-5 is the second Arrow well to use Autonomous Inflow Control Devices (AICDs) which are designed to limit the water cut in horizontal wells. The results of CNB HZ-4 and HZ-5 are being closely monitored to determine if these technologies, or others, will enhance production and ultimate recovery in the Ubaque reservoir.
CNB HZ-4, HZ-3 and HZ-1
The first three horizontal wells (CNB HZ-1, HZ-3 and HZ-4) on the CNB pad continue to perform above expectations with the following flow rates and water cuts:
CNB HZ-4 Gross 2,120 BOPD Net 1,060 BOPD Water Cut 13%
CNB HZ-3 Gross 1,900 BOPD Net 950 BOPD Water Cut 48%
CNB HZ-1 Gross 1,600 BOPD Net 800 BOPD Water Cut 52%
Upcoming Drilling
The Petroworks rig is being moved to the sixth cellar on the Carrizales Norte B Pad where the Company plans to spud the fifth horizontal well (CNB HZ-6). Thereafter, the Company expects to drill one additional horizontal well on the B pad, followed by the Chorreron-1 (formerly known as Baquiano-1) exploration well, which is on trend with the Carrizales Norte field.
Corporate Update
Current net corporate production is approximately 5,835 BOE/D, inclusive of CNB HZ-5.
Arrow's cash position was approximately $15 million on September 1, 2024. Arrow has maintained a healthy balance sheet with no debt.
Marshall Abbott, CEO of Arrow Exploration Corp., commented:
'The horizontal wells at the CNB pad continue to surpass expectations. Arrow's focus for the remainder of 2024 will be the completion of the six well horizontal well program at Carrizales Norte as well as a low-risk exploration well at the Baquiano prospect.'
'Arrow has begun the planning and construction of roads and pads in the Tapir block in order to accelerate the 2025 capital program which is expected to include the drilling of low-risk exploration wells at Mateguafa Oeste, Capullo, and Mateguafa Attic. In 2025 the Company is also targeting further horizontal Ubaque and vertical C7 development drilling at Carrizales Norte, and Baquiano. The Company is also planning to drill further development vertical wells at Rio Cravo Este, commencing at the end of 2024 and continuing in 2025 with a second drilling rig.'
'This enhanced capital program underlies the prolific setting of the Tapir Block in the Llanos Basin in Colombia. The block displays significant hydrocarbon density in multiple oil-bearing zones down to 10,000 feet total depth.'
'Arrow continues to improve drilling metrics on both horizontal and vertical wells, using internally generated development drilling and completion strategies.'
For further info, see Arrow's latest Corporate Presentation (September 2024)
Source: Arrow Exploration
