Arrow Exploration says first horizontal drilling at Tapir marks 'a step change' in production
Vancouver, Canada
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May 17, 2024 11:45 AM Eastern Daylight Time
Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF) CEO Marshall Abbott discusses the first horizontal well at the company's Tapir project in Columbia after it spud the CNB HZ-1 well.
Abbott said the successful spudding of the well followed extensive planning and reservoir simulations that have been carried out over the past year. The company has leveraged expertise amounting to 400 horizontal wells of experience.
He said the horizontal drilling is expected to be transformative as it will expose 550 meters of the reservoir, significantly more than the 15 feet exposed by vertical wells, thus enhancing oil recovery with less effort and reducing water intrusion.
The initial horizontal well, followed by a vertical water disposal well, is part of a strategy to potentially drill up to ten horizontal wells. Production is anticipated to begin in early June, with gradual increases to prevent sand production. Arrow has dedicated disposal wells for water production and plans to produce clean oil with multiple buyers lined up, expecting favourable netbacks due to a $15 discount to Brent and a 12% royalty rate.
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