Arrow Explor. Share Chat (AXL)

C&P from next door.

here and there19 Sep '24 - 11:40 - 9338 of 9341 0 7 0

Had a decent broker zoom with Arrow this week, some highlights

-Cash is growing nicely

-latest well cleaning up, result next week

-plans afoot for second rig at RCE later in the year ( haven't signed rig contract yet, just making sure oil price settles down)

-Good mood noises on Osso Pardo, hoping for a result by year end (this would have a dedicated rig until it was drilled out)

-the 3D has provided 'liquid gold' in terms of drilling inventory, next 3D will be shot in Q1 2025

-plans to connect CN and RCE by pipeline/s across the river. Saves costs and gives optionality on water disposal methods and moving oil. Can flow water in batches, oil in batches or as an emulsion that can be separated by existing facilities.

- There is plenty of capacity for water disposal. No problems there. Everytime they are approaching saturation they will drill a dedicated water disposal or covert one of their weaker producers

- Really interesting on the horizontal decline rates. So far the wells are performing better than their modelling. As a basic rule of thumb it works like this. 50% decline in 3 months (An initial flush). From that point on expect annual declines of 25%. The wells pay out in a month or two after 60000 boe of production. They may produce up to 2 million boe over a potential 20 year production life. It's an incredible return on investment, simple cash machines. The presentation has a good slde or two on it.

- drilling inventory stretches out for years.

- Reserves report end of year. Didn't do one in the summer as they kept on making fresh discovery after fresh discovery so difficult to know when to draw the line...more first world problems!

POO stabilising and slightly up today.

Nice to see a flurry of buyers this morning as we near the interims

Called lol

Theres a thing caused sentiment B the fact that oil is sliding is putting investors off, look whats happened here for instance lets see what the next six weeks bring . Of note as well is that the motoring season is over in the US lets see.

Sold out far too soon and panicked imo.

Arrow are in a strong position and can weather the storm,

if in fact there is a storm on the horizon which personally I doubt but each to their own as they say.

The company is doing fine, the problem oil isnt in fact it very much appears to be in a bear market.USA pumping out record oil production.China and USA coming out with bad production figures and oil is being shorted as if theres no tomorrow imo its a bleak scenario.Yes i sold @ 29.6p with a small loss and the sp could scrape past 30p on results AIMHO.PS Check out OILNEWSNOW for an update on the oil situation

C&P X.......Robin Mayes@Robin25461631 1h

Management are in town next week, presenting to II, HNW and retail. They have had a stellar year, production now at 5000bopd, next horizontal well result due in the next 2 weeks, three more horizontals to follow. Check out the drilling inventory, it is endless, the paybacks extraordinarily quick, spoilt for choice. Production, reserves and SP will keep on growing

Drill time from spud to oil is now around 4 weeks so we may hear news on HZ-5 as early as end of next week. Nice :)

Complete idiot M1 you have no idea what you are talking about.

KS - it’s pointless replying :)

Again, and for the third time - the net cash position has grown $1.2m in the month of August, during which the company spent c$2.5m drilling an additional horizontal well to increase production.

Capex spend is fuelling production growth, which will fuel cash flow.

If they couldn’t make cash in the amazing times they will start struggling ahead given capex spend so high

Last well was spud 28.07 and on production 26.08. So only days/weeks to next update

"The Company spud the fourth horizontal well (CNB HZ-5) on August 22".....maybe end of the month till it's on production?

They're certainly active with that drill bit!!! Good to see a company working for the shareholders.

Share-price performance of Arrow Exploration since the prospect of a Gustavo Petro presidency, compared to Colombia's leading five O&G Independents and Ecopetrol the NOC, would suggest CEO Marshall Abbott should not have to look too far for a buyer when the time comes to cash in our Tapir Block chips!

'Index of the share prices of Colombia-focused O&G E&P publicly traded companies lies well below where it was on May 1st, 2022 when the prospect of a Gustavo Petro presidency seemed distant.' Hydrocarbons Colombia 29th July 2024:

Share Price Performance since 1/5/2022

+90% - Arrow Exploration

-37% - Colombian Focused O&G Index

-41% - Frontera Energy

-45% - Ecopetrol(NOC)

-48% - Parex Resources

-51% - GeoPark

-61% - Grand Sierra

-77% - Canacol

Nothing to panic about here...

Bearish oil reports are effecting the sp nothing else imo

Https://www.proactiveinvestors.co.uk/companies/news/1055517/arrow-exploration-s-third-horizontal-well-on-carrizales-norte-pad-surpasses-production-expectations-1055517.html

Oil slipping

Once again - the net cash position has grown $1.2m in the month of August, during which the company spent c$2.5m drilling an additional horizontal well to increase production.

The decline rate on the first horizontal well has not been too dramatic, the second horizontal slightly higher. The 3rd horizontal has been drilled with AICD technology to control watercut - we wait and see what effect that has. We have 2 data points already for expected decline rates, so can make an educated guess about whether they 'dive' or gradually decline over time.

All in all, the company is on track to have doubled production year or year and is now managing to increase cash in bank whilst spending considerable capex to keep proudction increasing.

Trade it, short it, whatever. I will continue to hold and watch the balance sheet grow.

No one knows if these flows will hold into months ahead or dive

But what is certain is that net cash isn’t building despite costs apparently lower, strong oil prices etc. need to see balance sheet grow

Overall, the response here has been favourable. The bb is mostly quiet. No complaints from this fella who got on board @ 20p. Being such a sceptical late starter was my fault.

The company anticipated increasing water cut after initial flow rates - this is why they drilled/converted dedicated water disposal wells.

The first horizontal cost $2.45m net to Arrow and they are getting more efficient at drilling and cheaper we are told.