Arrow Exploration Corp. Increases Colombian Oil Production with New Horizontal Wells
- Arrow Exploration Corp. boosts oil production in Colombia with two new horizontal wells, achieving 4,600-4,800 boepd.
- The company holds a 50% interest in the Tapir Block, with wells yielding 1,790 BOPD and 880 BOPD.
- Arrow plans additional horizontal wells in the Ubaque formation, supported by strong cash reserves and innovative drilling techniques.
Arrow Exploration Boosts Oil Production in Colombia with New Horizontal Wells
Arrow Exploration Corp., a rising player in Colombia's hydrocarbon sector, announces significant advancements in its oil production capabilities following the commissioning of two horizontal wells at its Tapir Block operations. The company, which holds a 50% beneficial interest in the block, achieves a net daily output ranging from 4,600 to 4,800 barrels of oil equivalent per day (boepd). This production spike is driven by the Alberta Llanos HZ5 well, operational since July 2, yielding 1,790 barrels per day (BOPD), and the HZ4 well, which commenced on June 11 and delivers 880 BOPD. Both wells target the promising Ubaque formation and are equipped with inflow control devices designed to optimize production efficiency.
The context of Arrow's achievements is particularly critical as Colombia grapples with declining oil production. National output has plummeted from over 1 million barrels per day (bpd) in 2015 to approximately 714,246 bpd in April 2023. Amidst this backdrop, Arrow's strategic drilling program, which has added four wells during the second and third quarters, is vital to revitalizing production in a challenging market. The company has also commenced production from vertical wells at Carrizales Norte and Rio Cravo Este fields, further diversifying its output sources and enhancing overall production capacity.
Looking ahead, Arrow's operational flexibility is bolstered by its robust cash reserves of $13.5 million and a lack of debt obligations, allowing it to adapt its drilling strategy according to market fluctuations. Future plans include the drilling of additional horizontal wells in the Ubaque formation, supported by a recent 3D seismic survey that has unveiled new prospects, such as Icaco and Macoya. CEO Marshall Abbott emphasizes that the newly drilled wells have already surpassed initial production forecasts, with an expected payback period of just six months at current oil prices, highlighting the company's commitment to leveraging underexploited assets within Colombia’s key oil-producing regions.
In addition to the successful commissioning of horizontal wells, Arrow Exploration's operational strategy reinforces its commitment to exploring untapped potential in Colombia's hydrocarbon landscape. The company's focus on enhancing production through innovative drilling techniques and technology positions it as a forward-thinking operator in a competitive industry. Arrow’s ongoing efforts to expand its footprint in the Llanos Basin not only contribute to its growth but also play a crucial role in addressing the broader challenges facing Colombia's oil production sector.
