Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF) told investors it is currently producing over 4,500 barrels of oil equivalent per day, and it expects to grow output further in the second quarter.
Albeit, the company said that amidst the backdrop of global economic and commodity price volatility, it is now reviewing its original $50 million capex plan for 2025 that had slated 23 new wells.
The Canada-based, Colombia-focussed oil and gas company highlighted that it has increased its cash position to over US$25 million as production grows and said it has neither debt nor drilling obligations.
Chief executive Marshall Abbott said: "Arrow will protect its strong balance sheet during this period of market and commodity price volatility.
“Arrow has a low-risk portfolio of drilling locations to maintain production with limited capital spend and is able to maintain high netbacks to remain cash generative through weaker crude pricing."
He highlighted also that the company benefits from being ‘ flexible with a strong balance sheet and drilling inventory’.
Abbott added: “Arrow's strong balance sheet may allow the company to take advantage of financially distressed assets and Arrow continues to evaluate acquisition opportunities.”
It is expected that Arrow will provide investors with further guidance regarding any modifications to its capital programme, as the economic and oil price environment stabilises.
New wells deliver production growth
It has completed the drilling of two horizontal wells (CN-HZ10 and CN-H29), since its last update, and, drilling is currently underway on its next well (CN-11)
CN-HZ10 is yielding 1,182 boped gross – 591 bopd net to Arrow – meanwhile CN-H29 is also in production, but is determined to be in a sub-optimal location (its flowing at 244 bopd gross, 122 net).
CN11, a directional well targeting the C7 formation, is expected to be completed within two weeks, Arrow added.
Over in Arrow’s Alberta Llanos field, it noted that the AB-1 recompletion in the Guadalupe zone has delivered initial production of 400 barrels per day gross (200 barrels net).
Also, the AB-2 well is to be converted to a water disposal well, while AB-3 is producing 160 barrels per day gross (80 barrels net).
At the East Tapir asset, a 3D seismic programme has been completed ahead of schedule and under budget. Processing and interpretation work is due to be finished within 30 days.