Arrow Exploration shares climb 43% in recent developments

Since listing, the company has seen 11 out of 11 wells drilled successfully in 2023, and the up and coming 2024 work schedule is committed to a further 15 wells. $45 million has been allocated for the schedule. Meanwhile, in the longer term there is also a plan to reach production of 10,000 barrels per day.

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Arrow Exchange's share price climbs on impressive developments

Arrow Exploration, a company that trades on the London AIM and Canadian Venture Exchange, has seen its share price soar by over 40% in just three weeks. This growth is due to the company's impressive performance in Colombia, where it operates in the heart of the oil industry. The company's CEO, Marshall Abbott, explains that they conducted an IPO to raise $15 million and currently produce around 2,500 barrels of oil per day in Colombia. Their goal is to reach a production level of 10,000 barrels per day within the next three years. Excitingly, recent drilling in an area called Carrizales Norte has led to the possible discovery of 40 million barrels of oil.

Funding for future drilling

Abbott assures us that Arrow Exploration has plenty of funds allocated for future drilling. The company's board has approved a budget of $45 million to drill 15 more wells by the end of the year. Importantly, Abbott reassures investors that Arrow Exploration will not need to raise any more money and expects to have $13 to $14 million cash on hand by the end of the year. Abbott expresses confidence in the company's ability to minimise risks through their past successful drilling and the stable environment in Colombia. Abbott also mentions that Arrow Exploration has conducted a large-scale survey, which has identified many potential drilling sites for future exploration.

Discussing share price and future plans

When discussing the company's share price, Abbott points out that Arrow Exploration is currently undervalued compared to its cash flow, making it an attractive investment opportunity. He believes there is potential for growth in the oil market due to limited exploration spending and increasing oil consumption. Abbott also hints at the possibility of approval for an extension on one of their blocks, which could further boost the company's share price.

Looking ahead, Abbott highlights the drilling of horizontal wells as a major milestone for the company. This development will take Arrow Exploration's production to a whole new level. The drilling rig is set to arrive within 30 days, and the process will take approximately 21 days. The results of this drilling will be eagerly awaited by informed investors.

Overall, Arrow Exploration's recent success, potential for growth, and attractive valuation make it an appealing prospect for those looking to invest.