Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Could be long wait!!!!
Going back to the 18s will be waiting
In Marshalls last interview with Malcy, he mentioned that a new reserves report would be issued around mid-Feb. Today I sought clarification of this. Great we will see one soon and I cant wait fir a future reserves report being released that will include the gems that were alluded to in todays RNS:-
Hi xxx
A year end 2023 reserve report is being worked on right now. Expectations are that it will be released in the first half of March. It will include all wells drilled to December 31, 2023.
PART 2
The CEO describes the company as having ‘material reserves additions and production from further development at Carrizales Norte’ as well as drilling the Ubaque reservoir with conventional horizontal exploitation which he expects to lead to material production, cash flow and reserves growth. As a final bonus he reminds shareholders that there are additional pay zones ‘currently behind pipe which will provide further opportunities for production and reserves increases in the future.
I have been a fan of Arrow since it came to London and now that I have seen it at home, so to speak I am more so, its team from top to bottom is exceptional, its reputation in Bogota, where I had the opportunity to meet NED’s, competitors, regulators and of course the staff.
My Target Price has been 50p per share for some time, I am very happy to stay with that number and although it has yet to approach that, I am confident I am not being over generous, at some time Arrow will be the subject of corporate activity. I will writing more about my visit in due course, Arrow deserves more oxygen from the investing public…
This a truly game-changing announcement and made more interesting as I was out in the field at the time the CN-4 well was drilling and the highly professional team were doing yet another excellent job. The well, targeting the Ubaque formation found 29 feet of net oil pay and an ESP was inserted after perforation.
The well has been successful on more than one front, it has confirmed the company’s understanding of the Ubaque reserve base and for the potential and ‘commensurate’ horizontal drilling opportunities which as CEO Marshall Abbott said in my recent interview were significantly will be considerably more profitable.
So Arrow are carefully managing production as they always have to ensure efficient reservoir management, indeed at this well they didn’t test the C7 or the Gacheta formations as the Ubaque was a priority which leaves them plenty of opportunity to return at a later date for more wells and recompletions.
The CN-5 well spudded just after I left Bogota but the prospect was a really interesting one, the Carrizales Noroeste prospect and it logged 45 feet of Ubaque oil pay to the base of the sand. This prospect was another one of significant interest which I spoke to the CEO in the interview about and his expectations have been realised. ‘CN-5 has confirmed that there is a stratigraphic component to the trapping mechanism in the Ubaque reservoir as it extends to the west and is therefore expected to add significantly to the existing Ubaque oil reserves, and the well will also be completed for production before long.
There is much more to come from Arrow, the CN-6 well will be spudded when CN-5 goes onto production and it will target the C7 Carbonera where 3-D seismic shows ‘considerable running room for C7 development drilling within the sizeable primary Carrizales Norte structure’.
In addition to this the company is undergoing a substantial work programme across all areas of the portfolio. Three pads are under construction, at “CN B” where it is likely that the first horizontal well will be drilled in Q2, the Matteguafa Attic pad and the Baquiano road and pad. The Company expects to bring in a second rig for deployment at the CN B pad and a third rig for use at the Matteguafa Attic pad.
I was lucky enough to visit all these facilities and more, the RCE production facility of course and the three described above, all are in various stages of construction but it shows that the company is gearing up its portfolio for what is a very exciting future indeed.
Arrow has a very strong balance sheet with no debt, highly supportive shareholders and exceptional management. Indeed whilst spending plenty of time in their local office I found a group of talented and hard working oil and gas professionals all diligent in their own fields and specialities.
Have taken up a second wedge of AXL although knowledge of Llanos ops is sketchy. However, the bigger players are confidently going forward with 100k numbers . . ..
Looking for more detail on the proposed length of upcoming horizontals and perforations planned for each. Successful results from each will multiply bopds by some margin.
Consensus now from CG & Auctus (zeus not updated)
Production
2023 2228/ 2024 4664/ 2025 5799.
Cash
2024 $21.2m 2025 $66.5m
Target 47.2
Bangrak 42p
Getting to really enjoy being invested in this company. No drama, no debt and consistently good results. They are also drilling like mad almost a new well every month. Once the horizontals come on line this should really take off.
Another very good result, plus multiple new drill locations from 3d seismic and uplift in reserves.
What's not to like.
Looking very good,
Looking very good!
'"The CN-4 and CN-5 well results have helped determine the size of the Ubaque pool at Carrizales Norte and there are strong indications that the reserves additions will transform Arrow into a much larger company. Multiple development locations are anticipated based on current results.'
Https://www.lse.co.uk/rns/cn-4-and-cn-5-results-7eo1gky7c3vm9fy.html
HDT - this is looking very good to test the 26p 52 week high over the next few months as we approach the results of the first HZ well mid year. Good little updates on Twitter if you’re not already following. I have 7 figure holding here and added more at 20p today. I’ll continue to buy up to 26p and then I expect a minimum of a 3 bagger from there in 12 to 24 months from now.
The could well sell the company when we reach 10k boepd.
Re your question from EHL over yonder earlier today:-
An update on CN-4 will be issued shortly. The next well to be drilled will be CN-5, followed by CN-6.
We also expect to prepare an update for the OP wells.
Thanks
Joe
I believe they were supposed to be spudding the latest wells end January and then mid February.
This with the 1500HP rig.
Has anybody any updates at all?
Hopefully successful, but they are usually quicker with the RNS's than this quiet spell.
Cheers
Nice to see a couple of blue days, 2-3% every day would do me very nicely ta.
Arrow Exploration Corp.@corp_arrow
Feb 6
Updates from the Oso Pardo site!
The OP-1 on the Santa Isabel Block is back on production.
The OP-3 and OP-4 development wells were both drilled successfully targeting the Umir formation and Arrow plans to complete in Q1!
Read more ➡️ https://bit.ly/3vCUgER
Would have hoped to hear how the spud went last month and production levels have increased. Have a decent holding here but itching to hear some positive news. Good luck to all invested.
Have taken up a smallish wedge which may justify throwing in the odd comment. Past reluctance was a result of being fleeced by those Platanillo (Putumayo) AMER chancers/amateurs trying their hand in the oil business.
Restoring confidence takes time, and the process isn't helped by Abbott awarding himself with confetti-style options. These days the fellas raid the till well before the proceeds arrive.
I'm in all 3 of those also, along with TXP. High hopes for this one - the share price has not yet reflected the drilling success nor potential imo.
Thanks, KS, on both points. Reasonably satisfied after my study. Will dip in with a very modest £1k. Bulk of oilies are PTAL, i3E but got cold feet with JSE @ .95 after regarding it as core to p/f at one stage.
Viable - drill costs in Tapir are $2.0m net for the verticals, with the horizontals forecast to be 1.5 x the cost, but 3 x production.
MT has been back posting on ADVFN for some months, responding well to cancer treatment by the looks of things.
Regrettably, still fence-sitting . . . but likely to get moving when I can determine the horizontal drill(s) capital overhead. They seem to be running @ ~$15m per drill in S America, which is roughly the current sum in the kitty. Has Abbott indicated any estimates on this feature, assuming he proceeds with $45m capex for the year?
Also, I understood MountTeide has not been well. Is he still writing on the bb ?
FREE MONEY AGAIN
Given the escalating war in the Middle East, this looks like a compelling play. Oil could go to $150 given the stupidity of the US in not stopping Israel's genocide. Instead they attack the Houthis.