Arrow Exploration reported record production but a setback at its latest well in Colombia, which it has had to convert into a water-disposal well due to drilling problems.
The firm’s total production has hit a record of more than 6,000 barrels of oil equivalent a day, helped by drilling successes, well workovers and the recent acquisition of the Thorsby field in Alberta, Canada.
After paying US$8.9m for Thorsby, it had an estimated cash balance of US$21.8m at the start of September.
Arrow’s shares have had a sterling 2026 so far, rising 120%, and today’s announcement underscores their success.
But it hasn’t been plain sailing for the firm. The IC-6 well in the Icaco field has encountered a fault and suffered drilling mud losses before reaching its target depth.
Management cased it early and completed it as a water disposal well, a decision it said would help cut operating costs by adding disposal capacity. The well encountered net pay in two formations, though it was stopped short of its deeper targets.
Drilling has already moved on to the next well, IC-7, which was spudded on 1 September and will test three formations. Arrow added that it was continuing discussions with regulators over extending its Tapir licence, and said it was encouraged by what it described as a more pro-business stance towards oil and gas development from the Colombian government.