Canadian oil and gas company Arrow Exploration has announced that it has made a new oil discovery in the Carrizales Norte 1 (CN-1) discovery well in eastern Colombia.
The company drilled the well on the Tapir Block in the Llanos Basin of Colombia to a total depth of 9,190ft and encountered 148ft of net oil pay.
The well cut three hydrocarbon-bearing intervals. The Carbonera C7 sands measures 26ft of net pay, the Gacheta formation contains 64ft of net pay and the Ubaque formation spans 58ft, according to the company.
Arrow Exploration stated that it is now reviewing plans for a testing and completion programme.
The deeper Ubaque reservoir will probably undergo testing first, then the Gacheta, and finally the porous and permeable C7 reservoirs.
Arrow Exploration CEO Marshall Abbott said: “The CN-1 discovery is an extremely important and material event for Arrow and is further evidence of the potential of the Tapir block. All primary targets in the well have clear indications of oil pay and have the potential to greatly increase the Company’s reserves and production.
“Currently there are no reserves booked at the Carrizales Norte field. Apart from the exceptional technical results, the CN-1 well was drilled on time and under budget. Arrow plans to test several zones over the following weeks and then make a decision on which zone to bring on production.”
Testing will take place over the coming weeks and production is anticipated to start in early June 2023.
“Our expectation is that the CN wells will behave in a similar manner to the RCE wells, quick to payout with triple digit IRRs [internal rates of return] providing positive cash flow for the Company during a high commodity price environment. This is a very exciting time for Arrow and we look forward to providing further updates on our progress,” Abbott added.
The company also revealed that it plans to drill CN-2 well immediately upon completion of CN-1.