Arrow reaches total depth at latest Rio Cravo Este well

Arrow Exploration announced on Tuesday that it has reached total depth in the drilling of the Rio Cravo Este-3 (RCE-3) appraisal well on the Tapir Block in Colombia’s Llanos Basin.

The AIM-traded firm said the well, located within the Rio Cravo Este oil field, was drilled to a total measured depth of 8,880 feet, or 8,087 feet true vertical depth, and encountered seven hydrocarbon-bearing intervals with a total of 58 net feet of oil pay at measured depth.

It said the well encountered 19 feet net oil pay over three intervals in Carbonera C7, and 39 feet net oil pay over four intervals in Lower Gacheta.

However, it cautioned that the interval thicknesses were not necessarily indicative of long-term performance or ultimate recovery.

Arrow said it was optimistic over the well's potential, with production expected to start in early March.

The rig would now be moved to the RCE-4 location, which was expected to spud within two days of RCE-3 being brought into production.

“We're happy with the rig performance and the speed target depth was reached,” said chief executive officer Marshall Abbott.

“We are also encouraged by the log results of RCE-3, the fourth well drilled by Arrow on the Tapir block.

“RCE-3 has confirmed the continuity of oil-bearing intervals seen in adjacent wells, and discovered a potential new pay zone in the Gacheta.”

Abbott said the company was currently completing the C7 zone, targeting to be on stream in early March.

“This will increase Arrow's production and reserves.

“Following the company's procedures, Arrow will bring RCE-3 on slowly and increase production to best manage the oil reservoir.”

Arrow's current production was providing positive cash flow, Marshall Abbott added, during a high commodity price environment.

“Continued strong production rates from existing tied-in wells combined with the encouraging results from new wells in Colombia support the Company's objective of achieving a production rate of 3,000 barrels of oil equivalent within 18 months of its AIM listing in October 2021.

“This is an exciting time for Arrow, and we look forward to providing further updates on our progress.”

At 1215 GMT, shares in Arrow Exploration were up 1.35% at 18.75p.

Reporting by Josh White for Sharecast.com.