Arrow triples output with new Alberta well
London-listed Arrow Exploration announced on December 13 the launch of a new well near Edson in Alberta, Canada, almost tripling its net production.
The West Pepper well has achieved an initial stabilised flow rate of 6.2mn ft3/day, or over 1,030 barrels of oil equivalent/day. Its commissioning has raised Arrow's net production to around 1,570 boe/d. The company operates the West and East Pepper licence in Alberta with a 99% working interest, and has additional operations in Colombia.
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Arrow said it brought the West Arrow well on stream at a cost of $1.3mn. The well will benefit from currently robust gas prices in Canada, with the January 2022 contract at the AECO hub trading at C$3.87/GJ as of December 12, or 30% higher than the third-quarter average.
"Production initiation at the West Pepper well represents a step change in our overall production profile," CEO Marshall Abbott commented. "The well is expected to generate significant additional revenue and cash flow for the company going forward."
Arrow cautioned that the initial flow rate may not be indicative of long-term production at the well, given natural decline.