Arrow Exploration’s latest horizontal well exceeds expectations

Arrow Exploration Corp told investors that its third horizontal well, CNB HZ-4 at the Carrizales Norte project’s B pad, has flowed in excess of 2,500 barrels of oil per day.

The well was spudded in late July 28, reached its target depth in early August and has entered production.

It is an expectation-beating result, and Arrow noted that production continues to increase.

A stabilised production rate will be determined in the first few weeks of operations, the company added.

"The horizontal well program at the CNB pad continues to exceed expectations, and the company now plans to drill two additional horizontal wells before moving to the Chorreron prospect (formerly named Baquiano),” chief executive Marshall Abbott said in a statement.

“This will result in a total of six horizontal wells at Carrizales Norte in 2024 with additional horizontal wells being planned for 2025.

“The Arrow team continues to reduce the time and costs needed to drill horizontal and vertical wells, using internally generated development drilling and completion strategies."

Also today, Arrow updated investors on its second quarter, reporting a net income of $1.2 million, a significant improvement from a loss of $0.8 million in Q2 2023.

The company recorded $15.1 million in revenue, a 47.25% increase compared to the same quarter in the previous year.

Arrow also reported a robust cash position of $10.8 million as of June 30, 2024, with no debt on its balance sheet.

"Arrow experienced material growth in production, revenue and earnings … This growth was achieved while preparing for the highly successful horizontal well program at Carrizales Norte,” Abbott said.

“This included the Q1 and Q2 Carrizales Norte vertical well program to delineate the Ubaque reservoir, as well as preparing pads, roads, oil transportation and water disposal infrastructure.

"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 Chorreron prospect.

“A second rig is being evaluated to begin development drilling at the RCE field towards the end of 2024."

Abbott also told investors that Arrow planned another aggressive capital program for 2025, focused on production growth and exploration.

He added: “Arrow plans to drill low risk exploration wells at Mateguafa Oeste, Capullo, and Mateguafa Attic.

“The company is also targeting further horizontal Ubaque and vertical C7 development drilling at Carrizales Norte, and Chorreron, if successful, and the drilling of development vertical wells at Rio Cravo Este in 2025."

"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."

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