AXL - Arrow Exploration says first horizontal drilling at Tapir marks 'a step change' in production
(NewsDirect)
Arrow Exploration Corp (TSX-V:AXL,AIM:AXL, OTC:CSTPF) CEO Marshall Abbott discusses the first horizontalwell at the company's Tapir project in Columbia after it spud theCNB HZ-1 well.
Abbott said thesuccessful spudding of the well followed extensive planning andreservoir simulations that have been carried out over the past year.The company has leveraged expertise amounting to 400 horizontal wellsof experience.
He said thehorizontal drilling is expected to be transformative as it will expose550 meters of the reservoir, significantly more than the 15 feetexposed by vertical wells, thus enhancing oil recovery with lesseffort and reducing water intrusion.
The initial horizontalwell, followed by a vertical water disposal well, is part of astrategy to potentially drill up to ten horizontal wells. Productionis anticipated to begin in early June, with gradual increases toprevent sand production. Arrow has dedicated disposal wells for waterproduction and plans to produce clean oil with multiple buyers linedup, expecting favourable netbacks due to a $15 discount to Brent and a12% royalty rate.
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