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Highlights
- AB-1 well resumes production with 260 BOPD gross; expected payout in 10 months.
- AB-3 well confirms productive potential, producing 580 BOPD gross with 9% water cut.
- Plans for new horizontal wells in Alberta Llanos and Carrizales Norte fields, set for further development.
Arrow Exploration Corp. (AIM:AXL), a high-growth operator with assets across Colombia's major hydrocarbon basins, has provided an operational update on its activity in the Alberta Llanos field, located in the Llanos Basin. Arrow holds a 50% beneficial interest in the Tapir Block where these developments are occurring. The company’s ongoing exploration and production activities continue to demonstrate promising results and growth potential across multiple wells in the region.
AB-1 Well: Resumption of Production
After a regulatory-mandated one-week shut-in period for exploratory wells, the AB-1 vertical well has resumed production. The well is currently producing from the Ubaque reservoir at a rate of 260 barrels of oil per day (BOPD) gross (130 BOPD net). The oil produced has an API gravity of 13.6° with an 80% water cut. The AB-1 well is projected to pay out in approximately 10 months, making it a crucial part of the company’s production portfolio moving forward.
AB-2 Well: Sub-Economic Oil Rates Lead to Temporary Shut-In
Drilled on December 25, 2024, the AB-2 well reached its target depth on January 1, 2025. This well was drilled into the extreme northern part of the Alberta Llanos field and encountered several hydrocarbon-bearing intervals. However, after coming in structurally lower than anticipated, the well produced sub-economic oil rates. As a result, the AB-2 well was temporarily shut in for further evaluation. Arrow is reviewing alternative completion options, including recompletion in different zones to improve the well's performance.
AB-3 Well: Positive Results and Increased Production
The AB-3 vertical well, spud on January 11, 2025, reached its target depth on January 19, 2025, and has confirmed the productive potential of the Alberta Llanos field. Drilled to a total measured depth of 9,650 feet (8,801 feet true vertical depth), AB-3 encountered four oil-bearing sands, including the Carbonera C7, Guadalupe, Gacheta, and Ubaque formations, with a total of 96 feet of oil pay.
On January 24, 2025, Arrow put the AB-3 well into production in the Ubaque formation, which has approximately 56 feet of net oil pay. The well is producing 580 BOPD gross (290 BOPD net) with a 9% water cut (from completion fluid and formation water). This strong early performance confirms the viability of horizontal wells in this multi-pool field. The AB-3 well is expected to pay out in about five months.
Production and Drilling Schedule
Arrow's total corporate production in January surpassed 4,500 barrels of oil equivalent per day (boe/d), exceeding the company’s initial forecast. Looking ahead, additional production operations are planned before the end of Q1 2025, with a focus on the Ubaque reservoir. Each new horizontal well in this area is expected to significantly increase production volumes.
The company’s drilling schedule is also progressing. The rig is currently being moved to the Carrizales Norte pad, where development of the northern and southern areas of the field will begin by the end of February. Three horizontal wells targeting the Ubaque sands are scheduled for drilling. In the second quarter of 2025, Arrow plans to bring a second rig into service to further increase production from low-risk development wells.
Following these developments, the rig will be moved to the Mateguafa Oueste prospect to drill Arrow's first exploration well in the area. The company is also preparing to drill multiple horizontal wells on the Alberta Llanos prospect, which will help expand production from the Ubaque reservoir. Construction of additional cellars for further wells is underway, with more wells planned once these facilities are completed.
