Arrow Exploration shares increased 20.8% to 16.3p in late afternoon trading on Wednesday, after the company reported six hydrocarbons bearing intervals at a total of 90 net feet of oil pay in its Rio Cravo Este-2 (RCE-2) well.
The oil and gas firm commented that its Colombia-based project targeted a large, three-way fault bounded structure with several high-quality reserve objectives on the Tapir Block in the Llanos Basin, which was drilled to a total measured depth of 9,600 feet.
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The RCE-2 well was spud on 2 April 2022, and all operational costs reportedly came in line with the project’s budget.
“We’re encouraged by the material results of RCE-2, the second well on the Tapir block. RCE-2 identified new zones for further exploitation with flowing results returning better than expected,” said Arrow Exploration CEO Marshall Abbott.
“We’re currently completing the C7 zone, targeting to be on stream early next week. This effectively doubles Arrow’s production. The Company’s procedures will be to bring RCE-2 on slowly and increase production to best manage the oil reservoir.”
Arrow Exploration confirmed that strong production rates from existing tied-in wells, alongside encouraging results from new drills in Colombia, collectively supported the group’s aim to hit a production rate of 3,000 barrels of oil per dau (boe) within 18 months of its AIM listing in October 2021.
“We are now moving the rig to our next well location, the RCS-1 well, which is expected to spud before the end of May. Arrow’s current production exceeds 1,000 boe/d, producing positive cashflow for the Company during a high commodity price environment. This is an exciting time for Arrow, and we look forward to providing further updates on our progress,” said Abbott.