Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF) announced its strongest quarter to date, highlighted by significant production and financial growth.
For the third quarter ended September 30, 2024, Arrow reported net income of $6.7 million and adjusted EBITDA of $15.9 million, a 62% increase compared to Q3 2023.
Total oil and natural gas revenue, net of royalties, surged 53% year-on-year to $21.3 million, driven by production growth of 64% from the same period last year to 4,124 barrels of oil equivalent per day (boe/d).
Operating cash flows for the first nine months of the year more than doubled to $29.2 million, reflecting strong operational execution.
Arrow successfully drilled three horizontal development wells in the Carrizales Norte (CN) field during the quarter, followed by three additional wells post-period. Among them, the CNB HZ-7 well, drilled in late October, reached a depth of 8,448 feet and achieved initial production of approximately 800 barrels of oil per day (gross).
Current gross production stands at 700 barrels per day, with a 65% water cut.
CEO Marshall Abbott said the horizontal well program at Carrizales Norte has expanded the field’s potential. “The Carrizales Norte reservoir extends further than originally thought. The plan is to exploit this reservoir with additional horizontal wells,” he noted, adding that individual wells have demonstrated quick payouts and manageable decline rates.
Arrow’s current net corporate production has climbed to approximately 5,500 boe/d. The company is now mobilizing a rig to the Alberta Llanos prospect in the Tapir block to drill a low-risk exploratory well targeting multiple reservoirs, with results expected by year-end.
Looking ahead, Arrow plans an ambitious 2025 drilling program, targeting up to 23 wells across development and exploration areas. The $50 million capital expenditure budget includes further development of Carrizales Norte and testing new prospects like Mateguafa Oeste and Capullo. A 3D seismic project is also planned to refine prospects in the southern Tapir block.
Arrow noted that natural gas production in Canada has declined due to well shut-ins and natural depletion.
Abbott expressed confidence in the company’s trajectory, citing record results and a healthy balance sheet. “Arrow is looking forward to 2025 with a budget focused on production growth and low-risk exploration,” he said.
Arrow maintained a cash position of $19 million as of November 1, and continues to operate debt-free.
Shares of Arrow Exploration were up nearly 4.9% in Toronto on Thursday afternoon.
--Updated with share price information--