Proactive - Interviews for investors

Arrow Exploration Reports Record Q3 Results and Outlines Ambitious Growth Plans for 2025

Arrow Exploration CEO Marshall Abbott joined Steve Darling from Proactive to share a record-breaking Q3 performance and detailed plans for continued growth in 2025. The company achieved its strongest quarter ever in production, revenue, EBITDA, and cash flow. The company saw total revenue of $21.3 million, a 53% increase from Q3 2023. Net income of $6.7 million and adjusted EBITDA of $15.9 million, up 62% from Q3 2023 and 79% from Q2 2024. Operating cash flow of $29.2 million for the nine months ending September 30, 2024 and a cash position of $16.5 million at the end of the quarter. Operationally, abbott told Proactive the company successfully drilled three horizontal development wells at the Carrizales Norte (CN) field, contributing significantly to these results. The company plans further activity at the Alberta Llanos prospect, starting with a low-risk vertical exploration well targeting multiple formations. Two additional vertical wells are also planned on the same pad. Looking ahead to 2025, Arrow has ambitious plans to drill up to 23 wells using two rigs. Rig 1 will be focused on Alberta Llanos, Carrizales Norte, Mateguafa Oeste, and Capullo prospects. Rig 2 will be dedicated to the RCE development area and a new Carrizales Norte C pad for horizontal drilling in the northern section of the field. The company is also planning a 3D seismic project over the Tapir block’s southern area will target further development of the Icaco and Macoya prospects. The company has allocated $50 million in capital expenditures for 2025, with production expected to rise significantly as a result. This comprehensive growth strategy positions Arrow Exploration for a strong year ahead. #proactiveinvestors #arrowexplorationinc #aim #axl #tsxv #axl #OilAndGas #EnergySector #FinancialResults #UbaqueReservoir #TapirBlock #CapEx2025 #OilExploration #SeismicSurvey #EnergyInvesting#invest #investing #investment #investor #stockmarket #stocks #stock #stockmarketnews

Duration:: 4m
Broadcast on:: 29 Nov 2024
Audio Format:: other

You're welcome back inside our proactive newsroom. Joining me now is Marshall Abbott. He is the CEO of Arrow Exploration. And Marshall, good to see you again. How are you? Excellent, Steve. Great to be with you again. Yeah, exciting news out from the company. You've released your financials for Q3. And again, showing, you know, really record, record achievements by the company. And it really was a very, very strong quarter, Marshall. Yeah, we've moved to the next level and production cash, low EBITDA revenue. So we're pretty happy with the result. Yeah, tell me a bit about some of the numbers that stood out to you. Well, we're through 5,000 barrels a day, which is fabulous from where we were a year ago. From the perspective of revenue and cash flow, it's been a record quarter, absolutely. You know, we're up 40% to 50% in every category. We've got a 23-wheel budget planned for next year, $50 million CapEx program approved by the board. Today, we're sitting on 19 million of cash. And we're cash flowing four to five million a month, which is leaps and bounds above where we were a year ago. On top of all that, an interesting stat is, along with our partner, we're the ninth largest producer on short Columbia. Wow, that's staggering. And one thing about that, as you mentioned, the producer, talk to me about operationally, it was a really very busy third quarter as well. Lots of stuff going on. Well, and I'd really like to thank our team, both in Calgary and Bogota, for making this all happen. We've proven ourselves as being the lowest cost operator on shore, on the Topir block specifically. And we've had some luck with the drill bit. We've been drilling well after well of horizontal wells into the Ubaki Reservoir, which is treated as very well. We're pretty happy with the results, those wells. Have we discussed before, Steve? Pay out very quickly four to five months. So the IRR and those exceeds 500%. We're pretty happy with that stat. Yeah, and that's really gonna lead you in 2025, 'cause in the news release, you talk about plan to drill up to 23 wells, in fact. So tell me a bit about the, these are pretty ambitious plans for 25. Yeah, so we've got the momentum. We'd like to carry that forward into 25. We've certainly got the financial capacity to execute on a 23 well budget. Board approved $50 million CAPEX program, including a 90 kilometer seismic 3D program that these pay off in spades, as we've proven with our last go around. From a drilling perspective, we are covering kind of the entire spectrum of risk from low risk infill wells, to develop cat wells, if you will, to exploration wells. So we've got a good mix of everything. And the first exploration well will actually be spud, probably Monday. We're 90% rigged up, and that's going to test out the Alberta Janos prospect. That is an extension of the carouselis norte discovery that we've had. So we're pretty excited with the potential of that well. And we'll have results in 10 days, two weeks. Yeah, Marshall, one last question. You mentioned what you're going to be doing 23 wells that you're planning to go after, two rigs working on site. Is there a lot more there to explore as well? Is there a lot more past that also? Sort of give us an everyone a bit of the size that you're looking at in the future of this. Well, that's a really interesting point. So with respect to just looking at the TAPIR block where most of our activity is going to be, there are six separate fault trends within the block. Faults are your friend on this particular part of the basin. It's very fertile from a hydrocarbon density perspective. So we will be testing that out with as well as shooting a very large 3D seismic program at the south end of the block where we've got significant leads based on 2D seismic data. So we've got the technical support to really broaden our horizon. And we've really only exploited one and a half of the faults that we see on the 3D seismic survey so far. We've got six separate fault trends. And these faults, as I mentioned, are your friend with respect to closure and chance of success? - Absolutely. And the success showing in your financial numbers as well. Marshall, thank you so much. Good update and good to see you and good luck with that well on the next week. - Thanks Steve. Appreciate being with you. So long. - All right. The CEO of Arrow Exploration.