Arrow Exploration Corp. (LSE:AXL) has reported positive initial drilling results from the Icaco 1 exploration well on the Tapir Block in Colombia’s Llanos Basin, where the company holds a 50% beneficial interest.
The well was drilled to a measured depth of 7,800 feet, completed on schedule and below budget, and intersected several hydrocarbon-bearing intervals within the Carbonera C7, Gacheta and Ubaque formations. Production testing initially focused on the C7 reservoir section, which has already been brought into operation.
Strong flow rates support further appraisal plans
During clean-up operations, Icaco 1 produced at an average gross rate of 735 barrels of oil per day over a 15-hour period, with a 50% water cut. The well later stabilised at a restricted gross production rate of approximately 628 barrels per day.
Management said the well has the potential to deliver higher production rates following optimisation work. The company has already begun drilling the follow-up Icaco 2 step-out well as part of efforts to define the scale of the discovery more fully.
Arrow also plans additional appraisal drilling and potential horizontal development at the Icaco structure, before moving on to further development activity at its AB and CN production pads.
Corporate production remains resilient
Including restricted production from Icaco 1, the company’s total gross corporate output is currently around 5,100 barrels of oil equivalent per day.
This comes despite temporary operational interruptions, including the shutdown of the Pepper gas field in Alberta due to weak gas prices and maintenance work on the CN-HZ12 oil well.
Management described Icaco 1 as a significant discovery that strengthens confidence in the company’s seismic-led exploration model across the Tapir Block. The group also reiterated its strategy of maintaining a debt-free balance sheet alongside strong cash generation to support both organic expansion and acquisition opportunities.
More about Arrow Exploration Corp
Arrow Exploration Corp. is an oil and gas exploration and production company focused on underexplored hydrocarbon basins in Colombia, including the Llanos, Middle Magdalena Valley and Putumayo regions. Operating primarily through its subsidiary Carrao Energy S.A., the company holds significant working interests in light oil assets benefiting from Brent-linked pricing and comparatively low royalty structures. Arrow is listed on both London’s AIM market and the TSX Venture Exchange under the ticker AXL.
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