Arrow Exploration Corp. posted a net income of $7.1 million for the third quarter of the year, reflecting the company’s strongest results to date.
The figure was way above the $2 million recorded in the third quarter of 2022. EBITDA for the period more than doubled to $9.8 million from $4.6 million for Q3 2022, Arrow said in a media release.
“Arrow continues to grow, recording its strongest quarter to date. The 2023 drilling program, including the CN [Carrizales Norte] discovery, added significant production and reserves to the company and established a new core area. Additional low risk prospects have been identified using our recently acquired 3D seismic data”, Marshall Abbott, CEO of Arrow Exploration Corp., said. “The company plans to increase operational tempo in aggressively developing the Carrizale, Ubaque and C7 discoveries while simultaneously drilling low risk exploration wells along proven fault fairways”.
Average corporate production for the third quarter of 2023 was 2,518 barrels of oil equivalent per day, 68 percent above the production in the corresponding period of 2022.
Arrow recorded $13.9 million in total oil and natural gas revenue, net of royalties, almost doubled from the same period in 2022.
The company drilled the CN-2 and CN-3 wells on the Tapir block during the period, resulting in production and reserves additions. Discoveries in the Carrizales Norte have added 3.92 million barrels of proven and probable reserves.
Arrow said it anticipates drilling two additional wells at Rio Cravo Este by year-end. The company also plans to drill another development well on the Oso Pardo Block in the Middle Magdalena Basin.
The preliminary development plan at Carrizales Norte consists of 21 wells, the majority focusing on the Ubaque formation. The reservoir pay zone is consistently thick (100 feet) across the fault-bounded structure, according to Arrow. C7 and Gacheta targeted wells will also be part of the overall development plan at CN.
In 2024 the company plans to have a $40 million capital program including 15 wells. The majority of drilling will be focused on the Carrizales Norte discovery and will include three horizontal wells. Low-risk step-out and exploration wells are also planned at the Mateguafa Attic and Baquiano prospects.
The 2024 capital program will be self-funded by a combination of cash flow from operations and cash reserves, the company said.
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