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Highlights
- Record-breaking Q3: Highest production, revenue, and cash flow in company history.
- Strategic drilling success: Six horizontal wells completed in the Carrizales Norte (CN) field.
- Growth-focused 2025 plan: $50M capital expenditure targeting 23 new wells.
Arrow Exploration Corp. (LSE:AXL; TSXV:AXL), a high-growth energy operator with assets in Colombia's key hydrocarbon basins, has reported its strongest quarterly performance to date for Q3 2024. The company achieved record highs in production, revenue, EBITDA, and cash flow, underscoring its operational efficiency and growth trajectory.
Revenue from oil and natural gas, net of royalties, soared to $21.3 million, a 53% year-on-year increase from $13.9 million in Q3 2023. Net income reached $6.7 million, while adjusted EBITDA climbed 62% year-over-year to $15.9 million. Average corporate production surged to 4,124 boe/d, a significant leap from 2,518 boe/d in the same period last year.
The company also reported a strong cash position of $16.5 million and operating cash flows of $29.2 million for the nine months ending September 30, 2024, more than doubling the $13.9 million reported for the same period in 2023.
Operational Success in Carrizales Norte Field
Arrow's drilling operations in the Carrizales Norte (CN) field proved particularly fruitful, with the completion of six horizontal wells to date, three during Q3 and three post-period. These wells have bolstered the company's production capabilities, with realized oil operating netbacks of $50.76 per barrel, reinforcing its robust profitability metrics.
Post-Period Developments and Exploration Initiatives
After Q3, Arrow initiated preparations to drill the Alberta-1 exploratory well in the Tapir block, with the rig already mobilized. The Alberta-1 well targets multiple zones, including the C7, Gacheta, and Ubaque formations, with drilling set to commence in early December 2024.
This exploration marks the beginning of a series of drilling activities planned at the Alberta Llanos prospect, with two additional vertical wells expected.
2025 Growth Strategy: Doubling Down on Expansion
Arrow's ambitions for 2025 include drilling up to 23 new wells across various locations using two rigs. Rig 1 will focus on the Alberta Llanos prospect and several Carrizales Norte developments, while Rig 2 will target new pads in the northern Carrizales Norte field and further develop prospects in the Tapir block.
In addition to drilling, the company is planning a 3D seismic survey over the southern Tapir block to refine its understanding of the Icaco and Macoya prospects. Arrow has allocated a $50 million capital expenditure budget for these initiatives, which is expected to significantly boost production in 2025.
