Arrow Exploration Corp. (LSE:AXL) has strengthened its production profile after reporting positive results from the Icaco-2 exploration well on its Tapir Block in Colombia. The company, which focuses on developing underexplored hydrocarbon assets across several of the country’s key oil-producing basins, continues to pursue growth through a combination of exploration success, development drilling and operational efficiency.
Icaco-2 Delivers Strong Initial Production
The Icaco-2 well was drilled on schedule and below budget, marking another operational success for the company.
According to Arrow, the well encountered approximately 100 feet of net hydrocarbon-bearing pay within the Ubaque formation and is currently producing around 830 barrels of oil per day on a gross basis. Management believes the result further validates the prospectivity of the Icaco area and highlights the potential for additional development opportunities within the Tapir Block.
The company views the discovery as an important contributor to future production growth.
Corporate Output Reaches Around 5,000 boe/d
Following the addition of Icaco-2, Arrow’s total production has increased to approximately 5,000 barrels of oil equivalent per day.
The company continues to benefit from strong realised pricing, with oil sales linked to Brent crude and achieving prices close to US$97 per barrel. Combined with low royalty obligations and a debt-free balance sheet, these factors continue to support cash generation and financial flexibility.
Arrow operates the Tapir Block under a private commercial arrangement that currently provides entitlement to 50% of production from the block, pending formal approval from Ecopetrol.
Further Drilling Activity Under Way
Development of the Icaco area remains a key focus for the company, with additional wells currently being drilled to further assess and expand the discovery.
At the same time, management is engaged in discussions regarding a potential extension of the Tapir Block, which could provide additional opportunities to build reserves and sustain long-term production growth.
The company believes the combination of ongoing drilling success, attractive economics and a growing production base positions it well for further expansion in Colombia.
More About Arrow Exploration Corp.
Arrow Exploration Corp. is an oil and gas producer focused on developing high-growth hydrocarbon assets in Colombia. Its portfolio includes interests in the Llanos, Middle Magdalena Valley and Putumayo basins, regions that host some of the country’s most prospective oil and gas resources.
The company concentrates on assets with high working interests, exposure to Brent-linked pricing and relatively low royalty burdens. Arrow is listed on both the London Stock Exchange and the TSX Venture Exchange under the ticker AXL.
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