Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF) said it ended 2021 with significant increases in the reserves and net present values of its Colombian and Canadian assets.
The Canadian energy firm said its proved (1P) reserves grew by 4.1% to 3 million barrels of oil equivalent (MMboe), driven largely by uplift at its Santa Isabel (Oso Pardo) asset in Colombia.
The net present value (NPV) for 1P reserves is now US$29.4 million, according to independent consultants Boury Global Energy Consultants Ltd.
For proved plus probable (2P) reserves, Arrow saw an increase of 5.5% to 7.4 MMboe, putting the NPV at US$84.1 million. And in the proved, probable and possible (3P) category, the reserves increased the most, growing by 10.1% to reach 11.5 MMboe with an NPV of US$134 million.
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The company said that its NPV, which are before tax and discounted at 10%, have increased 208% for 1P and 146% for 2P, over year-end 2020, due to reserves growth and an increase in the oil price forecast used by BouryGEC at year-end 2021.
Arrow’s 2021 proved, developed and producing (PDP) reserves increased 152% to 1.0 MMboe on the back of the recent tie-in at West Pepper, Canada. It added that PDP reserves represent 34% of 1P reserves, reflecting an “attractive” ratio of base production to low-risk drilling targets.
"Arrow delivered an increase in volumes and values across 1P, 2P and 3P reserves in 2021,” CEO Marshall Abbott said in a statement. “We are pleased with the results of the BouryGEC reserves evaluation, which reinforces the significant value of our Colombian and Canadian assets."
Calgary-based Arrow has a portfolio of Colombian oil assets that it believes are under-exploited, under-explored and offer high potential growth. The group is aiming to expand oil production from some of the country’s most active basins, including the Llanos, Middle Magdalena Valley and Putumayo Basin.
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