Arrow Brings Colombia Well on Stream After Pay Hit

Why It Matters

The early production validates Arrow’s asset base in the Llanos basin, supporting its growth outlook and potential to increase cash flow. Securing a block extension would lock in long‑term upside in a region attracting significant foreign investment.

Key Takeaways

• M‑HZ12 well produced 564 barrels per day on restricted flow
• Net oil pay: 30 ft in Carbonera C9, 15 ft in C7
• Arrow holds 50% interest in Mateguafa Attic field
• CEO Marshall Abbott says Mateguafa wells are material to company
• Work‑over rig contract aims to recomplete wells Q2

Pulse Analysis

Colombia’s Llanos basin continues to draw attention from international explorers, and Arrow Exploration’s recent appraisal success underscores the region’s upside. The Mateguafa HZ12 well, drilled in March, intersected two hydrocarbon‑rich intervals, delivering a restricted flow of roughly 564 barrels per day. While the water cut sits at 60%, the oil’s 32‑degree API quality meets market standards, and early testing suggests the well can sustain higher rates once production constraints are lifted. This early cash‑flow contribution is especially valuable for Arrow, a London‑listed company seeking to fund its aggressive development schedule.

Technical data from the well reveal 30 feet of net oil pay in the Carbonera C9 formation and an additional 15 feet in the C7 formation, confirming the field’s reservoir thickness and continuity. Arrow’s 50% beneficial interest positions it to capture a meaningful share of future output, and the company plans to drill both horizontal and vertical development wells, alongside work‑overs, to maximize recovery. The upcoming work‑over rig contract, slated for late Q2, will enable recompletions that could improve the well’s water cut and boost daily production, aligning with the company’s guidance for incremental cash flow.

Regulatory dialogue around extending the Tapir block remains constructive, and a successful extension would secure Arrow’s foothold in a prolific basin while providing a platform for the newly spudded Icaco 1 (A‑1) exploration well. Investors are watching closely, as the combination of early production, a clear development roadmap, and potential block renewal could translate into higher earnings and a stronger balance sheet. In a market where oil prices are stabilizing, Arrow’s operational milestones in Colombia may serve as a catalyst for its stock performance and attract further capital for expansion in South America.