Key insights
- Arrow Exploration reported positive initial production results from its IC-1 exploration well in Colombia. While the results are promising, initial production rates are not indicative of long-term performance. The company also shut in its Pepper gas field in Alberta due to low natural gas prices. Overall, the news has a slightly positive influence on the US market due to increased oil production.
CALGARY - Arrow Exploration Corp. (AIM:AXL; TSXV:AXL) reported that its Icaco 1 exploration well on the Tapir Block in Colombia’s Llanos Basin has been placed on production, according to a press release statement issued today.
The IC-1 well was spud on May 5 and reached target depth on May 9 at 7,800 feet measured depth. The well encountered hydrocarbon-bearing intervals totaling 30 feet of pay in the Carbonera C7 formation, 15 feet in the Gacheta formation, and 26 feet in the Ubaque formation.
Arrow placed IC-1 on production on May 15 in the C7 formation. During the clean-up period, the well reached an average rate of 735 barrels of oil per day gross (368 BOPD net) with a 50% water cut for a 15-hour period. The well currently produces at a restricted rate of approximately 628 BOPD gross (314 BOPD net) at 15/128 choke and 30 Hz pump frequency. The oil quality is 27.8° API with a 46% water cut.
Arrow holds a 50% beneficial interest in the Tapir Block. The company stated that initial production results are not necessarily indicative of long-term performance or ultimate recovery.
A second well, Icaco 2, was spud on May 18. The company said the IC-2 well represents a significant step out from IC-1.
Total gross corporate production is approximately 5,100 barrels of oil equivalent per day, including the restricted production from IC-1. The CN-HZ12 well is currently offline awaiting a workover and was producing approximately 330 BOPD gross when shut in. Arrow has shut in its Pepper gas field in Alberta due to low natural gas prices.
The company plans further appraisal and development drilling at the Icaco field, including potential horizontal well development.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.