Shares in Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF), which today confirmed production at its third field, have the potential to more than double in value – that’s according to a ‘buy’ note from stockbroker Zeus Capital.
Arrow confirmed on Monday that it has started the new year on the front foot as it confirmed that the AB-1 well had begun production, and was flowing some 658 barrels oil per day, or 329 bopd net.
It marks, as Zeus analyst Daniel Slater pointed out, Arrow’s third producing field in the Tapir Block, Colombia, and the firm has yet more opportunity in the country.
Slater sees Arrow as a ‘buy’ with a 55p per share price target – compared to the current price in London of 24.3p per share.
“Arrow has an ongoing programme of new development wells (including horizontals) on the existing Carrizales Norte, Rio Cravo Este, and Alberta Llanos fields, all of which can be quickly brought onstream on success," the analyst said in a note.
“The Carrizales Noroeste discovery made in early 2025 should also add to the company’s drilling hopper in the coming years.
“Beyond this, there are several further prospects on Tapir (including Mateguafa Oeste and Capullo planned for drilling in 2025) and a significant potential new project based on a targeted enlargement of the Oso Pardo licence.”
The Zeus analyst added: “The company also has a history of adding new assets via acquisition. All of this should continue to provide regular drilling news flow for the stock and continuous production gains.”
A fantastic year of growth
Earlier today, in the company’s statement, Arrow chief executive Marshall Abbott commented: "We look forward to providing further updates on this low-risk development drilling program."
"2024 was a fantastic year of growth and infrastructure development for the business. I wish to thank the entire Arrow Team and their families for the tireless work and dedication to the growth of the company and creating shareholder value."
On Christmas day, the AB-2 well was spud and it has since reached its target depth of 10,795 measured feet. Logging and evaluation of productive sands are currently underway.
Arrow plans to begin drilling the AB-3 well immediately after the completion of AB-2.
Elsewhere, the company is also working towards the start of a 3D seismic programme in March.
Arrow’s significant production growth seen in 2024 was driven by a series of horizontal wells, its first with these assets in Colombia.
In London, Arrow shares are up some 37% over the past twelve months, propelling the dual-listed Canadian firm’s market value to over $130 million.