Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF) earlier this week told investors that 2024 marked a transformative year for the company, with a 65% increase in total oil and gas revenue. The company said it drilled 15 consecutive wells without a dry hole and highlighted that production has now stabilised, providing a reliable base for further expansion.
The company noted that drilling activity in the Tapir block in Colombia yielded consistently strong results. Arrow said that the block spans 100 square miles and contains six fault systems identified through 2D seismic data. It has so far only explored two of those. The company added that it recently completed a US$6 million 3D seismic survey to better define additional targets.
CEO Marshall Abbott said Arrow aims to produce 10,000 barrels per day within three years. He added that the company’s fiscal regime in Colombia enables competitive returns. “Our netbacks at US$70 crude were US$45, and at US$60 crude — which is where we are today — our netbacks are still US$35,” he said.
Arrow confirmed it ended the year with US$18.00 million in cash and is generating US$4.00 million per month in cash flow. Abbott said that with just one drilling rig, the company has not significantly drawn down on cash reserves. However, it plans to add a second rig in the near term and drill another 15 wells in 2025 across infill, development, and exploration categories.
The company emphasised its disciplined capital management and a methodical approach to expanding production. It said that the new wells will help it progressively test riskier areas of the Tapir block.
Abbott credited the company’s success to its team, noting strong technical and negotiation expertise and the efforts of its 48-person staff in Bogotá. “We've had some luck — and it’s not my effort. It’s the team's effort,” he said.
The company said it remains well positioned to continue growing production and exploring new opportunities within its existing asset base.