Arrow Exploration, the high-growth operator with a portfolio of assets across key Colombian hydrocarbon basins, has announced its Interim Condensed (unaudited) Consolidated Financial Statements and Management's Discussion and Analysis ('MD&A') for the three months ended March 31, 2024.
Q1 2024 Highlights:
- Recorded $14.4 million of total oil and natural gas revenue, net of royalties, more than double compared to the same period in 2023 (Q1 2023: $6.9 million).
- Net income of $3.2 million (Q1 2023: $3.0 million).
- Adjusted EBITDA(1) of $10 million more than double compared to 2023 (Q1 2023: $4.4 million).
- Average corporate production up 139% to 2,730 boe/d (Q1 2023: 1,144 boe/d).
- Realized corporate oil operating netbacks(1) of $56.27/bbl.
- Cash position of $11.6 million at the end of Q1 2024.
- Generated operating cashflows of $8.6 million (Q1 2023: $2.4 million).
- Successfully drilled four development Carrizales Norte (CN) wells, resulting in additional production and reserves additions.
(1)Non-IFRS measures - see 'Non-IFRS Measures' section
Post Period End Highlights:
- Drilled two additional CN development wells.
- Spud the first CN Horizontal well ("CNB HZ-1") from the Carrizales Norte B ("CNB") pad. The Company expects to be able to provide an update on the production figures for CNB HZ-1 in the coming weeks. Subject to successful completion, CNB HZ-1, in conjunction with the other three planned CNB HZ wells, are expected to result in a positive increase in Arrow's production rates.
Outlook:
- Continued monitoring of the drilling of the horizontal wells at Carrizales Norte B pad.
- Completing stimulation efforts at the Oso Pardo-3 and 4 wells in the Middle Magdalena Basin.
- Continuing with the balance of the 2024 capital program, the majority of which will be focused on the Carrizales Norte field and will include three horizontal wells. Low risk step-out and exploration wells are also planned at the Mateguafa Attic and Baquiano prospects. The 2024 capital program will be self-funded by a combination of cash flow from operations and cash reserves.
Marshall Abbott, CEO of Arrow Exploration Corp., commented:
'In Q1 2024, Arrow experienced its strongest quarter to date for production and EBITDA. The Q1 2024 wells drilled, at the Carrizales Norte discovery, explored the extent of the C7 and Ubaque reservoir and gathered further data for the horizontal drilling program. Horizontal wells have been determined as the best way to develop the Ubaque reservoir and are expected to thrust Arrow to the next level for production and stability. The water disposal plan has also made great strides forward with the first disposal well at RCE being brough on production and the CN-4 well's conversion currently waiting on regulatory approval. Management remains confident in the Arrow team to execute on the planned exploitation campaign pursuing our opportunity rich portfolio and getting shareholder value to the next level.'
Source: Arrow Exploration
