Arrow Exploration Corp. is thrilled to announce the successful production of the CNB HZ-4 horizontal well on the Carrizales Norte “B” pad. The well has exceeded expectations with a current flow rate of over 2,500 barrels of oil per day (BOPD) gross, translating to 1,250 BOPD net to Arrow. Despite an 8% water cut and ongoing recovery of load fluid, production levels are steadily increasing. It is important to note that initial production flows may not necessarily reflect long-term performance or ultimate recovery, and a stabilized production rate will be determined in the coming weeks as part of conservative reservoir management practices.
The CNB HZ-4 well was spud on July 28, 2024, and successfully reached a target depth of 8,452 feet (true vertical depth) by August 12, 2024. With a total measured depth of 13,335 feet and a horizontal section of approximately 3,940 feet, the well came on production on August 26, 2024, utilizing an electric submersible pump (ESP). Initial results indicate that CNB HZ-4 exhibits comparable reservoir characteristics to CNB HZ-1.
In addition to the CNB HZ-4 well, the CNB HZ-3 and CNB HZ-1 horizontal wells continue to perform exceptionally well above expectations. CNB HZ-3 is currently restricted to a flow rate of 1,920 BOPD gross with a 31% water cut, while CNB HZ-1 is producing at a flow rate of 2,090 BOPD gross with a 41% water cut. The Company’s drilling technology has shown significant improvements in both time and cost efficiency, reflecting the operational team’s dedication to enhancing capital and operating costs to create additional value for shareholders.
Moreover, Arrow Exploration Corp. has initiated the drilling of the CNB HZ-5 horizontal well on the Carrizales Norte B Pad, with plans for two more horizontal wells on the same pad followed by the exploration well Chorreron-1 (formerly Baquiano-1). The Company’s current net corporate production stands at approximately 5,000 barrels of oil equivalent per day (BOE/D), inclusive of production from CNB HZ-1, CNB-3, and CNB HZ-4.
Financially, Arrow Exploration Corp. recorded significant growth in Q2 2024 compared to the same period in 2023. Total oil and natural gas revenue, net of royalties, amounted to $15.1 million, marking a 47% increase from Q2 2023. The Company reported a net income of $1.2 million, a stark contrast to the loss of $0.8 million in Q2 2023. Adjusted EBITDA for Q2 2024 reached $8.9 million, reflecting a 53% increase from Q2 2023. Arrow’s average corporate production for Q2 2024 was 2,546 BOE/D, with realized corporate oil operating netbacks of $51.21 per barrel.
Looking ahead, Arrow Exploration Corp. remains focused on executing its 2024 capital program, with a strong emphasis on the Carrizales Norte field and additional horizontal well drilling. The Company also plans to undertake a low-risk exploration well at the Chorreron prospect and self-fund the remaining 2024 capital program through a combination of operational cash flow and cash reserves.
Marshall Abbott, CEO of Arrow Exploration Corp., expressed optimism about the Company’s future prospects, highlighting the success of the horizontal well program at the CNB pad and outlining plans for further drilling in 2025. With a commitment to enhancing production growth and exploration, Arrow aims to capitalize on the abundant hydrocarbon resources in the Tapir Block in the Llanos Basin, Colombia.
In conclusion, Arrow Exploration Corp.’s latest operational updates and financial results underscore the Company’s ongoing success in maximizing production potential and creating value for shareholders. With a strategic focus on drilling efficiency, reservoir management, and capital allocation, Arrow is poised for continued growth and success in the Colombian oil and gas sector.
For more information, please visit Arrow Exploration Corp.’s website at www.arrowexploration.ca.