Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF) is well-positioned to capitalize on the opportunities within Colombia after delivering its strongest quarter to date, driven by significant growth in both production and financial performance.
Highlights from the third quarter ended September 30, 2024 included net income of $6.7 million and adjusted EBITDA of $15.9 million, marking a 62% year-on-year increase.
The company’s oil and natural gas revenue surged by 53% to $21.3 million, fueled by a 64% increase in production to 4,124 barrels of oil equivalent per day (boe/d).
Arrow's ability to scale production effectively and manage operational costs led to a strong financial outcome for the quarter, with operating cash flows more than doubling to $29.2 million for the first nine months of 2024.
Drilling in the Carrizales Norte field, a key asset in Colombia, was a big highlight. The company successfully drilled three horizontal development wells during the quarter, with another three wells drilled post-period. The CNB HZ-7 well, drilled in late October, achieved an initial production rate of 800 barrels of oil per day (gross), highlighting the field’s growing potential.
Current gross production from the Carrizales Norte field stands at approximately 700 barrels per day, with a 65% water cut. Arrow’s net corporate production now totals around 5,500 boe/d, a significant milestone for the company.
Looking ahead at 2025
Arrow is positioning itself for continued growth with a bold 2025 drilling program, planning to drill up to 23 wells across both development and exploration areas. The company has set aside $50 million for its capital expenditure budget, which includes further development of Carrizales Norte and exploration of new prospects, including Mateguafa Oeste and Capullo.
Additionally, Arrow plans to undertake a 3D seismic project to better define prospects in the southern Tapir block, a high-potential area in the Llanos Basin. The results from these exploration initiatives are expected to shape Arrow’s growth trajectory well into 2025 and beyond.
Financial strength and stability
Arrow’s financial position remains robust, with a cash balance of $19 million as of November 1, 2024. The company continues to operate debt-free, providing a solid foundation for its ambitious plans. The company’s focus on low-risk exploration and a balanced approach to development and drilling provides confidence in its long-term financial stability.
As the company continues its aggressive growth plans, retail investors are keeping a close eye on the outcome of its exploration programs and future production growth.
Shares of Arrow Exploration are up over 28% year to date in Canada.