New Malcy Update / 50p+2 Feb 2023 11:59
Here we go then as Arrow get underway with a series of wells and seismic to kick the new year into action. The rig has arrived on site at the Rio Cravo Este (RCE) and will spud within days, each well will take around 12 days to drill and if successful will come onstream after 10 days, so three wells drilled.
The company plan to target the Gacheta sandstone reservoir later in the year, dedicated Gacheta wells would likely spud in Q4 2023 after three Carrizales Norte (CN) wells have been completed. This is because the CN pad is being completed and will use the rig after the RCE-5 well is completed.
Meanwhile, seismic on the Tapir block is underway and should be completed in Q1 2023. Finally, sundry wells will receive additional perforations such as RCS-1 once RCE-3, RCE-4 and RCE-5 are completed and on production.
Arrow are financially strong and independent, cash of $13m at year end and the approved 2023 capital budget for Arrow totals US$32 million and is to be financed from current cash reserves and operating cash flow which is very encouraging.
Arrow joined the bucket list formally at Christmas and I am convinced that it will not disappoint. It has a fantastic management team and with a substantial well programme and a seismic survey about to complete makes Arrow a very busy company. At 18p the shares have doubled since I first listed them as likely to outperform and with my current Target price of 50p likely to be conservative once the company’s targets are met which I’m sure they will be, that TP should rise through the year.
https://www.share-talk.com/malcys-blog-oil-price-petrotal-corp-zephyr-energy-arrow-exploration-savannah-energy-finally/
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