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(Sharecast News) - Arrow Exploration announced on Friday that the Rio Cravo Este (RCE) well, RCE-5, was now in production.
The AIM-traded firm said the well was drilled to a total measured depth of 10,200 feet, or 8,100 feet true vertical depth, and encountered six hydrocarbon-bearing intervals totaling 90 net feet of oil pay.
It said the well was completed in the upper part of the Carbonera C7 formation, and is currently flowing with a 27/168 choke, producing 680 barrels of oil per day gross with a water cut of 12%.
The company noted that initial production results were not necessarily indicative of long-term performance or ultimate recovery.
Arrow also updated the market on operations at the other wells in the RCE field, with RCE-4 flowing at 944 barrels per day gross, and RCE-3 producing at 852 barrels per day gross.
The drilling rig used to drill the RCE wells was being moved to the Carrizales Norte (CN) prospect, where an additional two wells might be drilled if successful.
Arrow said the Capella field, which was previously shut down due to ongoing discussions between the government, protesters, and the operator, continued to be offline.
Its board said it was hoping for a quick resolution of the protesters' concerns.
Additionally, the Tapir 3D seismic acquisition programme was now complete, and a final processed data set was expected within four-to-six weeks.
Arrow said its current corporate production, with the Capella field shut in, stood at around 2,635 barrels of oil per day.
The company said it estimated that an additional 300 barrels per day would be added to corporate production once the Capella field was at full production, for a total of 2,935 barrels per day.
As at 1 April, the company's cash balance totalled $12.1m.
"Initial production from the RCE-5 well has exceeded expectations," said chief executive officer Marshall Abbott.
"In addition to the thick pay zones encountered on the Carbonera C7 formation, additional pay zones currently behind pipe may provide further opportunities for production and reserve increases.
"Drilling and completion costs came in on budget and within the time frame expected."
Abbott added that the RCE-4 and RCE-3 wells were currently producing better than expected, with Arrow choking the wells back in an effort to manage the reservoir and discourage premature water production.
"Arrow has engaged the pumps on RCE-3 and RCE-4 and is slowly increasing production as the wells are more stable.
"Arrow is now moving the rig to the Carrizales Norte pad to begin drilling the CN-1 well towards the end of April.
"This is an exciting time for Arrow, and we look forward to providing further updates on our progress."
At 1154 BST, shares in Arrow Exploration Corporation were up 3.52% at 18.38p.
Reporting by Josh White for Sharecast.com.
