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Arrow Exploration says RCE-5 well exceeded expectations in testing

Published: 03:24 14 Apr 2023 EDT

Arrow Exploration Corp - Arrow Exploration says RCE-5 well exceeded expectations in testing

Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF) has told investors that the RCE-5 well on its Tapir Block in the Llanos Basin of Colombia has exceeded pre-drill expectations as one of six zones flowed at close to 700 barrels of oil per day (bopd) in testing.

The company, in a statement, said that RCE-5 – which was drilled in March and tested in April – had encountered six hydrocarbon bearing intervals, totalling 90 net feetpay, and was completed in the Carbonera C7 formation.

This formation flowed at a rate of 680 bopd in testing, whilst the well is still unloading completion fluid and a further update is expected to follow in due course.

"Initial production from the RCE-5 well has exceeded expectations,” Arrow chief executive Marshall Abbott said in a statement. “In addition to the thick pay zones encountered on the Carbonera C7 formation, additional pay zones currently behind pipe may provide further opportunities for production and reserve increases."

“Drilling and completion costs came in on budget and within the time frame expected," he added.

Arrow also reported its most recent production data which at group level amounted to 2,635 bopd whilst the Capella field is temporarily ‘shut-in’ - the company said the rate would be 2,935 bopd if were online. The company noted that it had US$12.1mln of cash at the start of April 2023.

Capella is suspended whilst discussions continue between the Columbian government, protesters, and the operator.

At Tapir, meanwhile, the company said the prior wells are performing above expectations.

"The RCE-4 and RCE-3 wells are currently producing better than expected and the Company is choking the wells back in an effort to manage the reservoir and discourage premature water production. Arrow has engaged the pumps on RCE-3 and RCE-4 and is slowly increasing production as the wells are more stable,” Abbott noted.

"Arrow is now moving the rig to the Carrizales Norte pad to begin drilling the CN-1 well towards the end of April.

“This is an exciting time for Arrow, and we look forward to providing further updates on our progress," the Arrow chief executive concluded.

In London, Arrow shares edged slightly higher – gaining 3% to trade at 18.28p, which values the business at just under £70mln.

Arrow Exploration Corp's strategic growth and exploration success in Colombia

Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF) CEO Marshall Abbott delivered an engaging presentation at the Proactive One2One Investor Forum, detailing the company's journey since its establishment in Colombia in 2017. With a backdrop of favourable oil prices and successful field...

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