(Alliance News) - Arrow Exploration Corp on Monday reported production at its 50%-owned Alberta Llanos venture in Colombia was progressing in line with expectations.
The Calgary, Canada-based mining company with Colombian oil assets said drilling of the Alberta Llanos-1 well, located in the Llanos Basin's Tapir block, had reached its target depth of 9,960 feet, encountering multiple hydrocarbon-bearing reservoirs.
The AB-1 well went into production in December to allow water cut evaluation. The well's Ubaque formation has around 62 feet of net oil pay, Arrow said, with an average porosity of 25%. Average initial production in the first seven days grossed 658 barrels of oil per day, in line with expectations. Net production was 329 barrels of oil per day.
Drilling of the AB-2 well also reached its target depth of 10,795 feet, with logs and sands currently being evaluated for production potential. Arrow expects to drill AB-3 as soon as AB-2 activities are complete.
The company said December's total peak production, including AB-1, was 5,175 barrels of oil equivalent per day. The monthly average was 4,899, also meeting expectations.
Chief Executive Officer Marshall Abbott noted: "Initial results indicate that the Alberta Llanos discovery will result in another core area for Arrow and set up parameters for future horizontal development drilling."
The company added that its East Tapir acquisition programme is progressing on schedule, with seismic shooting expected to begin in March.
Arrow reported a total cash balance of USD19.1 million at January 1. Results for the three months to September 30 were Arrow's strongest quarterly figures on record.
Arrow shares fell 9.9% to 23.87 pence each on Monday morning in London.
By Holly Munks, Alliance News reporter
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