3rd Apr 2023 11:37
(Alliance News) - Arrow Exploration Corp on Monday hailed progress at Rio Cravo Este-5, its development well on the Rio Cravo oil field in Colombia.
Arrow Exploration is an Alberta, Canada-based company with a portfolio of assets across Colombian hydrocarbon basins. Rio Cravo is located within the Tapir Block in the Llanos Basin of Colombia.
The RCE-5 well reached a total depth of 10,200 feet last Wednesday, and encountered six hydrocarbon bearing intervals totalling 90 net feet of oil pay.
The firm identified two hydrocarbon bearing intervals. These are Carbonera C7, showing 36 feet of net oil pay over two intervals, and Lower Gacheta, showing 54 feet of net oil pay over four intervals.
Arrow did note, however, that interval thicknesses don't necessarily ensure long-term performance or ultimate oil recovery.
It expects to start production at RCE-5 in early April. The rig will then be moved to Carrizales Norte-1, with planned spudding in late April or early May.
"RCE-5 was drilled under budget and on time. The team continues to become more experienced in the play, and this is resulting in cost and time savings. The net pay encountered in RCE-5 is one of the largest to date in the RCE field. We now have six wells drilled into the RCE structure and a very good understanding of the distribution of the various oil-bearing reservoirs we have encountered," said Chief Executive Officer Marshall Abbott.
Meanwhile, the submersible pump at RCE-3 was engaged. The well is currently producing at 800 barrels of oil per day gross, with 10% watercut.
Arrow said it plans to increase production on "a measured conservative basis" to achieve balance between maximum production and ultimate recoverable reserves.
CEO Abbott added: "Arrow is on a trajectory to exceed 3,000 [barrels] in the near term. These wells are quick to payout providing positive cashflow for the company during a high commodity price environment. This is an exciting time for Arrow, and we look forward to providing further updates on our progress."
Arrow Exploration shares were trading 8.6% higher at 17.70 pence each in London on Monday morning.
By Holly Beveridge, Alliance News reporter
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