Arrow Exploration to drill 15 wells in Colombia in 2024

Arrow Exploration Corp. will allocate $45 million for its oil and gas operations in Colombia in 2024.

The Canadian company will drill 15 wells focused on Tapir block in Orocué, Casanare, and the development of Carrizales Norte (CN) field in the block’s eastern plains.

The company more than doubled its average production rates during 2023—producing 3,200 b/d during the year—and expects similar production growth in 2024 with development drilling in the Ubaque and Carbonera formations, the company said in a release detailing 2023 operations.

"The results of 2023 demonstrate that Carbonera remains a strong high-volume producer, while the Ubaque formation has shown production extending beyond the Carrizales Norte complex,” said Marshall Abbott, chief executive officer. 

“Multiple development locations are anticipated based on current results, including horizontal drilling in the Ubaque reservoir in Carrizales Norte field. Horizontal wells typically produce at materially higher rates with marginal cost increases compared to a vertical well, increasing recovery and the economics of thick-layer oil fields,” Abbott said.

The Llanos basin Tapir block, where Arrow holds 50% interest, currently has 11 producing wells, including the latest wells to be drilled, Rio Cravo Este 7 (RCE-7) and Rio Cravo Este 8 (RCE-8). Both began producing in fourth-quarter 2023 and are exceeding company expectations with combined production over 1,700 gross b/d of oil (850 net b/d). 

The RCE complex has produced 1.7 million bbl of oil in the last 12 months, and additional development locations are planned.

Elsewhere in Colombia, Arrow drilled and tested the Oso Pardo-3 and Oso Pardo-4 wells (100% interest) on Oso Pardo (OP) field in the Middle Magdalena Valley basin. During testing, management determined that there was reservoir damage due to the high mud weight used in drilling. The company expects reservoir stimulations to take place early this year and for the wells to subsequently be put on production.

Production from Oso Pardo 1 was offline at year-end due to a hole in the production pipe. The well is expected back online early this year once the workover is complete.