Arrow Exploration (AIM:AXL), a Colombian-focused oil producer, has reported results from its Icaco-2 exploration well on the Tapir Block in the Llanos Basin, with the well encountering 100 feet of net pay across three formations and now producing at a restricted rate.
Spud on 18 May and reaching total depth on 26 May, the well logged 74.5 feet of net pay in the Ubaque formation, 19.5 feet in the Carbonera C7, and 6 feet in the Gacheta, coming in on time and under budget at 12,020 measured depth feet.
Currently producing from the Ubaque at a restricted choke and pump setting, the well is flowing approximately 830 barrels of oil per day gross, or 415 barrels net to Arrow's 50% beneficial interest, at 13.4 degrees API with a 1% water cut.
Including Icaco-2, total gross corporate production stands at approximately 5,000 barrels of oil equivalent per day.
The company held US$26.7 million in cash as of 2 June with no debt on its balance sheet.
The IC-4HZ horizontal well targeting the Ubaque was spud on 13 June, and the rig will subsequently move to the IC-3 vertical well targeting the C7, Gacheta and Ubaque formations.
"The success of the Icaco-2 well indicates that the Icaco discovery may be material to Arrow," said CEO Marshall Abbott, adding that drilling results so far have identified four potential hydrocarbon-bearing zones across the Tapir Block.
