(Alliance News) - Arrow Exploration Corp on Monday reported a peak production rate of over 1,270 barrels per day from tests on its new well in Columbia, and expects drilling of further wells to start within the next few weeks.
Arrow Exploration is a Calgary, Canada-based oil and gas company with projects in Colombia and Canada. It said on Monday it had completed the final test on the CN-1 well in the C7 formation. C7 is located at the Carrizales Norte field, in which Arrow holds a 50% beneficial interest, on the Tapir Block in Columbia's Llanos Basin.
Arrow's production test on the C7 formation was conducted over a 62-hour period. CN-1 was tested at three flow rates to evaluate productivity and to plan for water cut management.
The first flow period was held for 12 hours and showed an average gross oil rate of 662 barrels per day. The second lasted 32 hours and showed 902 barrels per day. The third was held for 17 hours and showed 1,134 barrels per day, the final stabilised oil production rate.
Arrow said oil production tested at a peak rate of 1,272 barrels per day. CN-1 produced at a gross rate of 1,103 barrels of oil per day, with a 12% water cut, in the final 24 hours of the test. CN-1 now has started producing from the C7 formation at 1,100 barrels per day gross and 550 barrels per day net.
"The testing results indicate the well is capable of higher rates and the ultimate flow rate will be determined in the first few weeks of production," Arrow Explanation said.
The company said that total corporate production, including results from CN-1, is currently between 2,700 and 2,900 barrels of oil equivalent per day. However the Capella heavy oil field in Columbia, in which Arrow owns a 10% non-operated interest, remains shut due to protests which it says have caused a net production loss of between around 280 and 300 barrels of oil per day.
Arrow also said it has completed processing of the West Tapir 3D seismic acquisition programme. Results are currently being analysed.
Arrow said the drilling, testing and completion of the CN-2 well is expected to take three weeks, following spudding on June 15. Drilling of the CN-3 well will commence immediately afterwards. The rig then will move to the Rio Cravo Este field to drill the RCE-6 and RCE-7 wells there.
"Initial production from the CN-1 well has exceeded expectations and is an exciting event for Arrow. In addition to the thick pay zones encountered on the Carbonera C7 formation, additional pay zones currently behind pipe provide further opportunities for production and reserve increases," commented Chief Executive Officer Marshall Abbott.
"The RCE field is currently producing better than budgeted, and the Company is controlling pump speed and choking wells back to efficiently manage the reservoir and discourage premature water production."
Shares in Arrow Exploration were up 0.6% at 22.12 pence each in London on Monday afternoon.
By Emma Curzon, Alliance News reporter
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