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(Sharecast News) - Oil and gas explorer Arrow Exploration said on Friday that corporate output had risen to more than 6,000 barrels of oil per day, a record for the group, supported by recent drilling success, strong workover results and the addition of the Thorsby field.
Arrow Exploration also said cash balances stood at $21.8m following its recent acquisition of the Thorsby field in Alberta, Canada for $8.9m.
The AIM-listed firm said the Icaco6 well, drilled in late August, encountered a fault and lost circulation, prompting Arrow to case it early and convert it into a waterdisposal well to help cut operating costs, though it noted that logs still indicated net pay in the C7 and Guadalupe formations.
Arrow added that the Icaco7 well was spud on 1 September targeting the C7, Gacheta and Ubaque zones, and noted constructive discussions with regulators on its proposed Tapir block extension, adding that Colombia's new probusiness administration aligned with its plans for further oil and gas development.
Chief executive Marshall Abbott said: "Arrow is very proud to surpass the 6,000 boe/d threshold. The additional production from drilling and workovers highlights the continued operational success the Company has had on the Tapir block. The multi-zone quality of the Icaco discovery, and its commensurate production rates, have surpassed initial expectations
"Although the IC-6 well was terminated sooner than expected due to encountering a fault, we were able to quickly pivot and complete the well as a water injector in a cost effective manner which will significantly help water handling and production efficiency at Icaco. Meanwhile, the best production wells in the Icaco block have paid out in less than 2 months and production continues to be strong from these wells."
Abbott added that Arrow continues to experience "strong netbacks", adding "significant value" and materially strengthening the group's balance sheet."
As of 1110 BST, Arrow Exploration shares were up 1.50% at 30.45p.
Reporting by Iain Gilbert at Sharecast.com
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