CALGARY - Arrow Exploration (LON:AXLA) Corp. (AIM: AXL; TSXV: AXL) ("Arrow" or the "Company"), a high-growth operator with a portfolio of assets across key Colombian hydrocarbon basins, reported its strongest quarter in history for production, revenue, EBITDA, and cash flow. The interim results for Q3 2024 reflect a significant increase in production and financial performance compared to the same period last year.
In the third quarter of 2024, Arrow's total oil and natural gas revenue net of royalties was $21.3 million, marking a 53% increase over Q3 2023's $13.9 million. This growth is attributed to the successful drilling of the first three horizontal development wells in the Carrizales Norte (CN) field. The company achieved an average corporate production of 4,124 barrels of oil equivalent per day (boe/d), up from 2,518 boe/d in Q3 2023.
The net income reported for Q3 2024 was $6.7 million, while adjusted EBITDA reached $15.9 million, a 62% increase from Q3 2023's $9.8 million. Arrow's cash position was $16.5 million at the end of the quarter, with operating cash flows of $29.2 million for the nine months ended September 30, 2024, more than double the $13.9 million from the same period in 2023.
Post the reporting period, Arrow drilled three additional successful CN horizontal wells and is currently mobilizing a rig to the Alberta Llanos pad in the Tapir block to spud the exploratory Alberta-1 well in early December.
The sixth horizontal well on the CNB pad, CNB HZ-7, is now on production, initially flowing at approximately 800 barrels of oil per day (BOPD) gross. Despite a higher water cut than other wells, CNB HZ-7 is expected to pay out in approximately four months, with an anticipated increase in production as pump frequency is increased.
The results of HZ7 and other horizontal wells have derisked further horizontal development in the CN field. Arrow's current net corporate production is approximately 5,500 BOE/D, inclusive of CNB HZ-7, with ongoing optimization efforts.
Arrow has maintained a debt-free balance sheet while growing its production base. The company is planning another year of growth in 2025, expecting to drill up to 23 wells using two rigs. The total budgeted capital expenditures for 2025 are approximately $50 million, net to Arrow, which is expected to result in significantly higher production levels than current.
Marshall Abbott, CEO of Arrow Exploration Corp., commented on the record quarter, highlighting the growth in corporate production and revenue. He also outlined the company's plans for continued horizontal well development at Carrizales Norte and the upcoming drilling at the Alberta Llanos prospect.
This news is based on a press release statement and includes only factual content without any speculative language or forecasts. The information is provided for general market interest and does not constitute investment advice or promotion of Arrow Exploration Corp. or its activities.
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