Arrow Exploration (AIM:AXL), the Colombia-focused oil and gas operator, reported results from three new wells at its Icaco field on the Tapir Block in the Llanos Basin, where it holds a 50% beneficial interest.
The IC-3 well is producing from the Gacheta formation at a restricted rate of approximately 250 barrels of oil per day (BOPD) gross, with 25.3° API oil and under 1% water cut.
The IC-4 horizontal well, brought onstream in the Ubaque formation, peaked at 799 BOPD gross during clean-up before settling at a stable 150 BOPD gross, with management attributing the decline to water breakthrough from valve placement during completion.
The IC-5 horizontal well, also in the Ubaque formation, is still cleaning up and producing at 1,270 BOPD gross.
Total gross corporate production now exceeds 5,000 barrels of oil equivalent per day (boe/d), including the new wells.
The CN-HZ12 well remains offline for a workover after producing around 330 BOPD gross prior to shut-in, while the Pepper gas field stays shut in on weak Alberta gas prices, with a restart expected once AECO prices improve through the winter months.
Arrow held an estimated cash balance of $27.5 million as of 1 August, with no debt.
Five new cellars have been built at Icaco to continue drilling, starting with IC-6, a vertical well targeting the C7, Gacheta and Ubaque formations.
"Strong netbacks and successful horizontal wells support payout occurring in months," said CEO Marshall Abbott.
News Intelligence what this means for the company
Arrow brought three new wells onstream at Icaco, with IC-5 hitting 1,270 BOPD gross during clean-up—the strongest single-well result reported. Total corporate production now exceeds 5,000 boe/d. The company holds $27.5 million cash with no debt and has begun drilling a fifth well (IC-6), signalling confidence in continued field development despite IC-4's water-breakthrough setback.
The IC-5 result and jump to 5,000+ boe/d production strengthen the near-term cash generation case that management flagged in June. However, the IC-4 decline from 799 to 150 BOPD post-clean-up shows execution risk; whether IC-5 sustains its 1,270 BOPD rate or follows a similar trajectory will be material to the payout timeline CEO Abbott cited.
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