Arrow Exploration Corp (TSX-V: AXL, AIM: AXL, OTC: CSTPF) reported first-quarter results with revenue more than doubling year-on-year, reaching $14.4 million compared to $6.9 million.
This growth follows a successful well drilling campaign in Colombia, and the company expects further increases as it transitions to horizontal well drilling, which promises higher production volumes.
The quarter saw an average production of 2,730 barrels of oil equivalent per day, a 139% increase from the same period last year. The company’s netback price was $56.27 per barrel.
Arrow reported a net income of $3.2 million, up from $3 million, while adjusted EBITDA more than doubled to $10 million from $4.4 million.
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
At the quarter’s end, Arrow had $11.6 million in cash and highlighted operating cash flows of $8.6 million.
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.”
