Arrow Exploration shares climb 43% in recent developments
The success of the recent drilling program in Colombia has seen shares rise more than 40% in the last few weeks alone. Arrow Exploration's Marshall Abbott, says the company is one of only a handful of such AIM share performances.
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.
(AI Video Summary)
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.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
React to volatility on commodity markets
Trade commodity futures, as well as 27 commodity markets with no fixed expiries.1
- Wide range of popular and niche metals, energies and softs
- Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
- View continuous charting, backdated for up to five years
1In the case of all DFBs, there is a fixed expiry at some point in the future.
See opportunity on a commodity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on a commodity?
Don’t miss your chance. Upgrade to a live account to take advantage.
- Analyse and deal seamlessly on fast, intuitive charts
- Get spreads from just 0.3 points on Spot Gold
- See and react to breaking news in-platform
See opportunity on a commodity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
