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Arrow Exploration Corp (TSXV:AXL) has announced significant production results from its latest horizontal well at the Carrizales Norte project. The CNB HZ-5 well has recorded an impressive flow rate of over 2,700 barrels of oil per day (BOPD) gross, translating to 1,350 BOPD net to Arrow. This development contributes to the company’s overall production, which now stands at approximately 5,835 barrels of oil equivalent per day, bolstered by the output from recent horizontal wells. The Carrizales Norte project, located in the Llanos Basin of Colombia, continues to be a focal point for Arrow's production strategy.
Production Growth and Future Plans
The company anticipates continued production growth, with plans to drill two additional horizontal wells before the end of this year. The latest well is expected to have a quick payback period of around two months, similar to the three previously drilled horizontal wells. This rapid return on investment reflects the efficiency and effectiveness of Arrow's drilling techniques.
Chief Executive Marshall Abbott noted that the performance of the horizontal wells at the CNB pad has consistently exceeded expectations. Arrow's strategic focus for the remainder of 2024 will center on completing its six-well horizontal program at Carrizales Norte, as well as conducting a low-risk exploration well at the Baquiano prospect. The addition of these wells is anticipated to further enhance production capacity and contribute to the company’s overall growth.
Strategic Development Initiatives
In preparation for future projects, Arrow has initiated the planning and construction of roads and pads in the Tapir block. This step is intended to expedite the company’s capital program for 2025, which is projected to include drilling low-risk exploration wells at several locations, including Mateguafa Oeste, Capullo, and Mateguafa Attic. This proactive approach is designed to facilitate smoother operations and minimize delays in future drilling activities.
Looking ahead to 2025, Arrow plans to target additional horizontal Ubaque and vertical C7 development drilling at Carrizales Norte and Baquiano. Furthermore, the company is set to drill additional development vertical wells at Rio Cravo Este, starting at the end of 2024 and continuing into 2025 with a second drilling rig. These initiatives demonstrate Arrow’s commitment to expanding its drilling operations and enhancing production capabilities in its key regions.
Efficiency Improvements
Arrow Exploration continues to enhance its drilling metrics for both horizontal and vertical wells through the implementation of internally developed drilling and completion strategies. These efforts aim to optimize production efficiency and support the company’s growth trajectory in the competitive oil market. By leveraging its experience and technological advancements, Arrow is positioned to maximize output while maintaining cost-effectiveness.
The combination of strong initial production results, strategic development plans, and a focus on operational efficiency underscores Arrow Exploration's potential to navigate the evolving landscape of the oil industry. As the company progresses through 2024 and into 2025, stakeholders will be attentive to its advancements and the impact on overall production levels.
