Business
Arrow Exploration Announces Re-Start of Production from the Morsa-1 Well, Re-Start of Production at the Capella Field, and a Corporate Production Update
Calgary, Alberta--(Newsfile Corp. - June 24, 2021) - ARROW Exploration Corp. (TSXV: AXL) ("Arr...
About this update from Arrow Exploration Corp.
[{"type":"text","content":"Arrow Exploration Announces Re-Start of Production from the Morsa-1 Well, Re-Start of Production at the Capella Field, and a Corporate Production UpdateCalgary, Alberta--(Newsfile Corp. - June 24, 2021) - ARROW Exploration Corp. (TSXV: AXL) (\"Arrow\" or the \"Company\") is pleased to announce the re-start of oil production from the Morsa-1 well (\"Morsa-1\") at the Oso Pardo Field, the re-start of oil production at the Capella Field, and a corporate production update.Re-Start of Morsa-1 Well (Arrow 100% W.I.)Following the completion of a PCP pump change early during the week of June 21st, 2021, Arrow re-started production from the Morsa-1 well at the Oso Pardo Field, located on the Santa Isabel Block, Middle Magdalena Valley Basin in Colombia. As of June 22nd, the Morsa-1 well was flowing at a rate of approximately 392 barrels of oil per day, net to Arrow's 100% W.I., of 22.90 API crude at zero water-cut. The Company expects this rate of flush production to stabilize in the coming months, at an expected rate of approximately 120 barrels of oil per day. Concurrent with the re-start of the Morsa-1 well, Arrow intends on re-starting production from the adjacent Oso Pardo-1 and Oso Pardo-2 wells in the coming days, and the Company expects combined production from these latter two wells to be approximately 50 barrels of oil per day.Taken together, the Company expects the Morsa-1, Oso Pardo-1 and Oso Pardo-2 wells to deliver near-term production of approximately 440 barrels of oil per day. This timely re-start of production at the Oso Pardo Field is expected to provide Arrow with additional cash flow to help grow the Company's operations going forward. At the current Brent crude oil price of approximately US$74/bbl, the Company projects field netbacks at Oso Pardo to be approximately US$37/bbl (after accounting for the Vasconia differential, as well as transportation, opex, and royalty costs).The Company projects capital costs to re-start production from the Morsa-1, Oso Pardo-1, and Oso Pardo-2 wells to be approximately US$325,000 (exclusive of any taxes), or the equivalent of approximately US$740 per flowing barrel of near-term production, making the re-start of these wells highly-efficient from a capital investment perspective.Re-Start of Capella Field (Arrow 10% W.I.)As previously announced by Arrow on May 25th, 2021, there have ...