Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF) has announced a significant increase in its quarterly oil and natural gas revenue, reaching US$13.9 million, a substantial rise from the US$7.6 million reported in the same quarter last year.
The company’s net income for the third quarter soared to US$7.1 million, up from US$2.04 million in the previous year, while its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) climbed to US$9.8 million, compared to US$4.6 million.
Q3 2023 Highlights:
· Recorded $13.9 million of total oil and natural gas revenue, net of royalties, almost double compared to the same period in 2022 (Q3 2022: $7.6 million).
· Net income of $7.1 million and adjusted EBITDA(1) of $9.8 million, more than double compared to 2022 (Q3 2022: $2 million and $4.6 million, respectively).
· Average corporate production up 68% to 2,518 boe/d (Q3 2022: 1,503 boe/d).
· Realized corporate oil operating netbacks(1) of $52.67/bbl. Q3 operating costs were slightly higher than Q2 due to higher start-up costs at the Carrizales Norte discovery.
· Cash position of $12.8 million at the end of Q3 2023.
· Generated positive operating cashflows of $6.5 million (Q3 2022: $5.2 million).
· Successfully drilled the Carrizales Norte-2 (CN-2) and Carrizales Norte-3 (CN-3) wells at the Tapir block, resulting in additional production and reserves additions.
· Significant increase in reserves from the Carrizales Norte discovery (CN), adding more than 3.92 MMbbls of 2P reserves.
(1)Non-IFRS measures – see “Non-IFRS Measures” section
Over the first nine months of its fiscal year, Arrow experienced a robust inflow of funds from operations, totaling US$16.2 million, a significant increase from the US$4.6 million recorded in the corresponding period last year.
This financial growth coincides with a 68% surge in production volumes, reaching 2,518 barrels of oil equivalent per day (boepd).
The company attributes its enhanced performance to successful drilling activities, especially at the Carrizales Norte-2 (CN-2) and Carrizales Norte-3 (CN-3) wells, which not only boosted production but also contributed to reserve growth, adding nearly four million barrels at Carrizales Norte.
Arrow is continuing its drilling initiatives at Carrizales Norte and the Oso Pardo Block, with plans to implement a US$40 million capital program in 2024.
Marshall Abbott, the CEO of Arrow, commented on the company’s progress, stating, “Arrow is experiencing its most robust quarter to date. Our 2023 drilling program, including the CN discovery, has significantly enhanced our production and reserves, establishing a new core area for us. We’ve identified additional low-risk prospects with our newly acquired 3D seismic data.
The company is set to ramp up its operational pace, focusing on the development of the Carrizale, Ubaque, and C7 discoveries, while also drilling low-risk exploration wells along proven fault lines.
The board is confident in the Arrow team’s ability to execute an ambitious exploitation strategy, capitalizing on our portfolio rich in opportunities and elevating shareholder value to new heights.”
