Arrow Explor. Share Chat (AXL)

After 2.5 + years of hard work and dedication, this company gets recognized. Still with no debt, 11m$ in cash, increasing both production and reserves, and supported by a very solid development plan, Arrow deserves even more recognition. Today volume on a >10% gain says it loud...we're going much bigger! Unless we get bought, not to quick I hope, so we still develop value. Kudos to management and all employees!!

If you are looking to invest some money on AIM then this is by far the best run company I have come across in 7 years of investing. No need to dilute as they have income from previously drilled wells. They drill non stop, another 5 wells this year. Do your research but this is an excellent company.

Canaccord Genuity view

It's still early days, but the outlook for the horizontal drilling programme on the CN field in the Tapir licence (Arrow, 50%) in Colombia is positive, with production rates ahead of Arrow's and our expectations. The first two, of initially planned four but now expanded to six horizontal wells targeting the Ubaque reservoir in 2024, are now in production, and the company has provided a 30-day update for the first of those.

CNB HZ-1: Initial production (reported 19 June) gross 3,150 bopd with

Going up...

Today’s RNS really is another good one….. happy holder and looking forward to significant increases in our SP going forward. Lots of other positive news for other companies today - sexier ones with lots of rampers so we might get lost in the noise….gla

Excellent news

Up and up we go.. smashing out these horizontals with water well capacity already built to support!

Easy cash generator here.. still feel dividends next year are a possibility if our new prospects come online!

Loving this stock and team, great job!

Just buy....you won't regret it imho.

Reassuring GDP numbers today should help oil recovery imo

Posted by rockyride on the other site.

We expect to have an update soon (early August) which will cover CNB HZ-3 and longer IP rates for CNB HZ-1. We will also discuss water disposal status in the same press release.

Great to see the steady rise towards 30p over the last month, as expected following the fantastic CNB-HZ1 results.

I'm hoping we receive some catalyst in the way of news on operational activities soon (CNB-2 water well and the next HZ), that should start lifting us up into the 30's off the back of volume! Not far now from that £100m market cap!

It'll come with patience, but I've also emailed the company to see if we'll be receiving any operational updates and will post if I hear back..

Volume of buys steadily increasing with nice £50k purchase around 9am. Holding, holding, holding!

Doing nicely from my 16p entry. Will look even better at £1 next year.

Say no more

Back up to 51 cents (29p) in Canada.

Only natural..but the company is on a good, firm footing, with proven success and more to come, i will hold on methinks. another 3 to 6 months and another 30% could easily be on the cards.....as ever GLA

Wise move, on to a winner here I think. Gla

Doubled our stake in AXL this morning to 0.2% of the company. Thanks once again for the high quality of posts on this forum. Love the combination of production/cashflow 'bedrock' and potential exploration upside here. Good luck to the AXL team on the ground.

The share price is settling at a higher range than previously. which bodes well for the next piece of good news, whenever that may be

What was really interesting here was the tit bit about Baquiano and CN being potentially connected…see slide 13, this would obviously make the oil pools a lot bigger.

Then off to to Matequafa Attic. Another look-a-like play and 90% COS. Potential for 5m boe of reserves.

Then back to CN to drill horizontals underneath the current ones. With mob and de-mob I can’t see them getting back to CN for the next batch of horizontals until year end.

Year end cash circa $23/24m.

Production forecasts/declines :- In a previous post I had at year end,

CNB-HZ 1 500 bopd

CNB-HZ3 700

CNB-HZ 4 900

Marshall suggested I was being a bit aggressive on those declines.

I had 4500 bopd being a base case average for Q4. I think with a fair ‘operational wind’ , 5000 bopd is a base case Q4 average following my meetings.

Key out takes,

1/. Don’t get caught up on granular detail, that is their job. All we need to see is growing production, producing reserves and inventory.

2/. ‘Dinner or diner’ Either way, trust management’s judgement. They are aligned. The latest drilling results give more and more fire power with regard to debt finance if required. Eyes are on them and they have eyes on assets as well.

3/. Remember plans change all the time due to events

4/. Production growth and exploration drilling is a balancing act. Maintain/grow immediate production versus reserve and drilling inventory growth. One facilitates the other, both add NAV value

4/. Slide 4. You can see where the SP should head to according to that graph. 5000bopd in Q4 should see us in the 40-50p range.

5/. Happy days! Enjoy the journey.

As promised, a write up of an in person and a broker zoom meeting last week.

CNB HZ-1

This first horizontal well has given a lot more than just exponential production growth.

Read this in conjunction with slide 17 of the presentation.

hxxps://arrowexploration.ca/wp-content/uploads/2024/06/Arrow-Corporate-Presentation-June-2024_Final-2.pdf

Whilst lining up the Horizontal section, the best way to get in position was to go across the fault. In doing so they unexpectedly encountered 40 feet of C7 sands; It’s not up against a fault, it is not a structural trap, it is a stratigraphic discovery. A complete bonus.

As a result the CNB-2 well has a double mission. It will become the second water disposal well to add capacity to the converted CN-4 water disposal well (each one will have capacity of 13000bowpd). It was also drilled across the fault through these freshly discovered C-7 sands. Once CNB HZ- 3,4 and 5 are drilled and the rig is moved off the pad (late September) a workover rig will be brought in to test the C-7 sands in the CNB-2 well. These results could add further significant reserves and drilling inventory as part of the C7 production development. See slide 22 in the presentation. Fresh drill pads and cellars will be required. Reading between the lines, I believe this CN C-7 drilling development is being ear-marked for a dedicated second rig in Q1 2025.

Our new II investor has been useful. Looks like we are going to be using these in future horizontals to help extend well life and control water ingress. Petrotal use them apparently hxxps://www.ajsp.net/research/Optimization_of_Horizontal_wells_by_using_down_Hole_Inflow_Control_Devices.pdf

During the dry season at the beginning of 2025 they will shoot 3D on the southern part of the block and also some further 3D on the other side of the fault at CN to try and help delineate the extent of the fresh C-7 discovery discussed above. At the moment they have 3 pages of inventory to work through, at least three years of drilling. This will expand with every fresh discovery.

Three wells on RCE and three on CN were ‘suppressed’ whilst they sorted out water disposal on both fields. About 300 bopd roughly

Capella will hopefully be back in Q4 adding 150 bopd. (Some road building required by operator to appease the locals)

Management much more confident of hitting 10 000 bopd in a couple of years time following this horizontal well result.

Baquiano: Slide 24. Check out the five cellars on the drill pad. $50k to build each one. This shows a high degree of confidence of a successful result. They will drill, on success, an initial three well campaign. A bit like with CN, these initial wells are effectively development/appraisal/producers which helps them define the discovery and work out how best to exploit it…by more horizontals? Ubaque/C7? etc. 90% chance of success.

51 cents close in Canada equates to 29 pence.

Looking good.

Not seen this posted b4 - nothing new but publicity for the company all the same.

https://x.com/corp_arrow/status/1808540297988608324

Welcome to the 'club' - suggest you top-up quick as this is only going one way imo :)

Taken a 0.1% stake in this company today (thanks for all the helpful comments on this thread). Love the 'perfect storm' of low valuation multiples, good cashflows & exploration upside. Don't think the market has latched on to the Q1 2024 trading update and factored in the recent volume uptick. May double/triple the stake on trading and exploration updates.

Still time - This hasn't got started, so undervalued at 3200 bopd just for starters