Colombia/Canada: Arrow Exploration announces 2022 year-end reserves

Before Tax NPV-10 values increased 97% for 1P and 51% for 2P reserves, 1P and 2P reserve replacement ratio was 165% AND 164% respectively

Arrow Exploration has announced the results of its 2022 year-end reserves evaluation by Boury Global Energy Consultants.

All reserves volume figures stated below are on a Working Interest Gross Reserve basis. Currency amounts are in United States dollars (unless otherwise indicated) and comparisons refer to December 31, 2021.

Highlights

• Proved ('1P') reserves:
  • Increased by 11% to 3.37 million barrels of oil equivalent ('MMboe'), driven principally through uplift at Tapir (Rio Cravo), Colombia; 
  • Net present value before tax, discounted at 10% ('NPV-10') is $57.9 million ($17.15/boe) for 1P reserves.
• Proved plus Probable ('2P') reserves:
  • Increased by 4% to 7.69 MMboe; 
  • NPV-10 is $127.3 million ($16.56/boe) for 2P reserves.
• Proved plus Probable plus Possible ('3P') reserves:
  • Increased by 1% to 11.68 MMboe;
  • NPV-10 is $205.8 million ($17.57/boe) for 3P reserves.
• Before tax NPV-10 values have increased 97% for 1P and 51% for 2P, over year-end 2021, due to reserves growth and an increase in the oil price forecast used by BouryGEC at year-end 2022;2022 Proved Developed Producing ('PDP') reserves increased 27% to 1.31 MMboe supported by the improved performance of the new drilling in the Rio Cravo Field; PDP reserves represent 39% of 1P reserves, reflecting an attractive ratio of base production to low-risk drilling targets; and
• Before tax NPV-10 per share of US$0.14/share, US$0.39/share, and US$0.63/share for 1P, 2P, and 3P reserve categories, respectively;
• BouryGEC post tax NPVs impacted by changes in Colombian tax regime in the year but pre other corporate tax shelters (further detail below).

Marshall Abbott, CEO of Arrow, commented:

'Arrow delivered an increase in volumes and pre-tax values across 1P, 2P and 3P reserves in 2022. We are pleased with the results of the BouryGEC reserves evaluation, which reinforces the significant value of our Colombian and Canadian assets.

The BouryGEC 2022 report of course does not account for the current drilling campaign at Rio Cravo Este, where, given the encouraging results to date, we might expect further reclassifications and increase in reserves.  Additionally, with the imminent drilling of the Carrizales Norte wells, we would expect to continue growing reserves in the near future.'

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Source: Arrow Exploration