Arrow Exploration Corp's strategic growth and exploration success in Colombia
Published: 10:15 20 Mar 2024 EDT
Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF) CEO Marshall Abbott delivered an engaging presentation at the Proactive One2One Investor Forum, detailing the company's journey since its establishment in Colombia in 2017.
With a backdrop of favourable oil prices and successful field operations, Arrow Exploration has seen significant growth. Operating in Colombia's rich hydrocarbon basins, the company boasts a productive capacity exceeding 3,000 barrels per day and holds reserves of 11.8 million barrels on a 2P basis.
Financially stable, Arrow Exploration sits on $15 million in cash, generating monthly cash flow of approximately $2.8 million. The company has outlined a $45 million capital expenditure for the year, fully self-funded, expecting to conclude with $13 to $14 million in the bank post the drilling of 15 wells.
Arrow's IPO launch in 2022 has yielded a 43% gain, marking it as a standout on both the AIM and TSX exchanges. The shareholder structure includes UK institutions (33%), retail investors (20%), and Canada's largest onshore natural gas producer, Canacol Energy Ltd (TSX:CNE), owning a 20% stake as Arrow's parent company. Management has invested significantly, holding just under 10% of the company, with a total of 280 million shares outstanding.
The company's strategic operations and drilling programs in Colombia are supported by a seasoned team with extensive experience, emphasizing a strong commitment to environmental, social, and governance (ESG) standards. Arrow has actively contributed to local communities, engaging in infrastructure and welfare projects.
Financially, Arrow benefits from Colombia's attractive fiscal regime, with average royalties of 12% and substantial tax incentives for reinvestment. The company's operational strategy includes a mix of low-risk development wells and exploration opportunities, aiming to reach a production milestone of 10,000 barrels per day within three years.
The presentation also highlighted Arrow's efficient capital deployment towards high-potential prospects, with an ongoing emphasis on exploration and development within Colombia's prolific oil and gas basins.
