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That is considerably higher gas rates even than when this well came on production.
From the same RNS dated 13th December 2021:
"With this additional natural gas production, the Company expects to benefit from currently robust natural gas prices in Canada. January 2022 natural gas futures contracts at the AECO hub (the benchmark for natural gas prices in Canada) were C$3.87/GJ as of December 12th, 2021, being approximately 30% higher than the 2021 Q3 average of C$2.97/GJ.
Marshall Abbott, CEO commented: "Production initiation at the West Pepper Well represents a step change in our overall production profile. The well is expected to generate significant additional revenue and cash flow for the Company going forward."
Lets not forget the gas, AECO average in April above $6 CAD and in may we sit comfortably above $7 CAD.
In a time when price should be low gas is building new highs
According to the podcast the RCE-2 well is going to be brought into production starting on Monday at a flow rate of about 500 bopd which will be ramped up to 2000 bopd within the week. 50% of this production is AXL's.
On top of this there is the existing production from Columbia and the gas from Canada which according to the RNS of 13th December: "With the additional production from the West Pepper Well, the Company estimates that its net corporate production is approximately 1,570 boe/d, almost tripling net corporate production prior to the tie-in of the West Pepper Well."
Colombia is the safest economic haven in South America.
That a new president would stop 54%(in march) of the country’s fiscal exports if he wins the election is downright exaggerating risks here.
Political risk will always be a thing, but if he expects to stay in power I wouldn’t expect banning oil to be the first reform out there.
Maybe some extra taxation but that is it
Thanks for the reply, H&N.
I would not be surprised to see Petro win outright on May 29th (over 50% of vote). I expressed my concerns here on my post of 13th April. Time will tell.
Excellent news today, but wouldn't want longterm investors sucked in by traders on today's news without doing wide research.
Yes, but things have changed completely with regards to oil and gas production over the last few months. Even projects in the UK that were moth-balled are now being allowed and encouraged. And this is just the start with oil prices projected to rise further.
This is dual-listed on the Canadian market so there should be further interest this afternoon.
Worth noting two things re. politics.
Petro won the first round in 2018. Then all the other candidates swung behind a 'anyone but Petro' candidate and they won.
30% of the country's GDP is from oil and gas. He cannot fulfilled any of his agenda without these incomes. A number of leftist politicians have threatened punitive changes if they came to to power but when they won power didn't follow through as they needed the revenues.
Worth noting for new investors that over 80% of shares here are held by institutions, directors, high net worth individuals and a big Canadian oil company ( whose name I can't remember off head )
Good summary article:
https://www.cfr.org/in-brief/colombias-2022-presidential-election-what-know
(though the CFR does have a NWO agenda - and too, a CIA assassination in not improbable imo)
They are working in one of the most active oil areas in Colombia surrounded by two already producing fields. Getting the oil to market should be easy
It's a good result when they can get production straight on stream. Sometimes these companies take months to convert successful testing to production.
The RCE-2 well was spud on April 2, 2022. RCE-2 targeted a large, three-way fault bounded structure with multiple high-quality reservoir objectives on the Tapir Block in the Llanos Basin of Colombia. The well was drilled to a total measured depth of 9,600 feet and encountered six hydrocarbon bearing intervals totaling 90 net feet of oil pay.
Specific production test rates for the isolated zones (shallowest to deepest) include:
· Carbonera C7 and C7 Stringer: tested 2,000 bopd (net 1,000 bopd) peak rate of 28 API crude.
The zone was tested for 19 hours at an average rate of 1,199 bopd (net 600 bopd).
· Gacheta C, C1 and C2: initial testing indicates productive capacity of 300 bopd (net 150 bopd) rate of 27 API crude. The zone was tested for 14 hours at an average rate of 115 bopd (net 58 bopd). Reserves have not been assigned to this zone previously.
· Gacheta D: tested 680 bopd (net 340 bopd) peak rate of 14 API crude.
The zone was tested for 33 hours at an average rate of 362 bopd (net 181 bopd).
ART - great company, great result, but a word of warning - Colombia elections on May 29th - Petro likely to win.
The RNS is full of positive comments (and facts):
"...with flowing results returning better than expected"
"We're currently completing the C7 zone, targeting to be on stream early next week",
This is a new company on me but it looks quite an exciting prospect.
Arrow's current production exceeds 1,000 boe/d so now it's going to be circa 2000 boe/d with a further well spudding shortly.
"Marshall Abbott, CEO of Arrow commented:
"We're encouraged by the material results of RCE-2, the second well on the Tapir block. RCE-2 identified new zones for further exploitation with flowing results returning better than expected."
"We're currently completing the C7 zone, targeting to be on stream early next week. This effectively doubles Arrow's production. The Company's procedures will be to bring RCE-2 on slowly and increase production to best manage the oil reservoir."
"We are now moving the rig to our next well location, the RCS-1 well, which is expected to spud before the end of May. Arrow's current production exceeds 1,000 boe/d, producing 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."