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(Sharecast News) - Arrow Exploration announced promising results from the AB-1 well at the Alberta Llanos field on the Tapir Block in Colombia on Monday, where it holds a 50% beneficial interest.
The AIM-traded firm said the well, spud on 30 November, reached its target depth of 9,960 feet on 13 December and confirmed the productive potential of the multi-pool field.
It said the AB-1 well, drilled in the Ubaque formation, encountered around 62 feet of net oil pay in clean sandstone, with 25% average porosity and high resistivity.
Following perforation, an electric submersible pump (ESP) was installed.
Initial production over seven days averaged 658 barrels of oil per day gross, or 329 daily barrels net, of 13.8-degrees API oil, with a 49% water cut, in line with expectations.
Arrow emphasised that the early results might not indicate long-term performance.
The AB-2 well, spud on 25 December, reached its target depth of 10,795 feet on 1 January.
Logs and productive sands were currently under evaluation, with drilling of AB-3 planned immediately upon completion of AB-2.
In December, Arrow achieved corporate peak production of 5,175 barrels of oil equivalent per day, with an average monthly production of 4,899 equivalent daily barrels, meeting expectations.
The company said it was also advancing its East Tapir 3D seismic acquisition programme, set to start in March.
Arrow said its cash balance as of 1 January totalled $19.1m.
"Initial production from the AB-1 exploration well is an exciting event for Arrow," said chief executive officer Marshall Abbott.
"In addition to the thick pay zones encountered in the Ubaque formation, additional pay zones currently behind pipe, the C7, Gacheta and Guadalupe, provide further opportunities for production and reserves increases.
"The Alberta Llanos discovery is material to Arrow and we are looking forward to the results of the AB-2 and AB-3 wells which will help to determine the size and extent of the pools and the potential reserves additions."
Abbott said initial results indicated that the Alberta Llanos discovery would result in another core area for Arrow, and set up parameters for future horizontal development drilling.
"We look forward to providing further updates on this low-risk development drilling programme.
"2024 was a fantastic year of growth and infrastructure development for the business."
At 1042 GMT, shares in Arrow Exploration Corporation were down 9.62% at 23.95p.
Reporting by Josh White for Sharecast.com.
