Marshall Abbott, CEO of Arrow Exploration Corp. (AIM: AXL | TSXV: AXL), shares insights into the company’s 2024 drilling programs and delivers promising updates on the CN-4 and CN-5 Wells, alongside anticipation for the upcoming horizontal wells.
Jim Gordon- Hi, I’m Jim Gordon and you’re watching Market One Minute. Joining us is Marshall Abbott. He’s the CEO of Arrow Exploration. Marshall, welcome.
Marshall Abbott- Happy to be here, Jim.
Jim Gordon-Great to have you, sir. Okay, let’s talk about Arrow Exploration and your 2024 drilling program.
Marshall Abbott- Certainly, so we have a 15 well program and $45 million approved budget to execute on that 15 well program, we’re two wells into it. We have the potential to double production again this year, and it’s all with internally generated prospects on our very large a hundred square-mile block in the Llanos basin of Colombia, the most prolific basin on the continent.
Jim Gordon- And Marshall, can you give us some updates on both the CN-4 and CN-5 wells?
Marshall Abbott- Certainly, Jim. So the CN-4 well was planned for the Ubaque Reservoir where we made a significant discovery in the middle of last year, 60-feet thick, consistently, we’ve turned that well on. It’s producing nicely, the oil comes out fast. CN-5, we extended the reach to the West quite a distance to test whether or not the reservoir extended that far, and we were pleasantly surprised that it did. We’ve got a 60 foot reservoir, quite a ways to the west. So it’s becoming a stratographic play, not just a structural play, which means more reserves in place, and more oil recovered, we’re excited.
Jim Gordon- And what about the upcoming horizontal wells?
Marshall Abbott- This reservoir of the Ubaque is tailor-made for horizontal drilling. Now we’re currently constructing a horizontal pad that we can drill six horizontals off of, and these wells have the potential and the capacity to produce well north of 2,000 barrels a day each. So that’s an exciting exploitation of the pool, of very low risk. And we have the technical capacity with our staff in both Colombia and Canada to execute drilling these horizontal wells without any issues.
Jim Gordon- And finally, Marshall, what can investors look forward to in the near future from Arrow Exploration?
Marshall Abbott- Well, I think with the plan being executed as we look forward, we’re going to have the capacity to double production. We’re sitting on $13.9 million of cash, we’re cash flowing $2.5 million a month. I think our share price is due for a step-change based on the very low-risk drilling that we’re embarking upon, and the commensurate cash flow that’s going to be generated out of that stuff. And from a fiscal regime perspective, Colombia is the best location in South America, in Latin America, we pay between an 8 and 12% royalty, and you can’t beat that.
Jim Gordon- Marshall, thanks for joining us.
Marshall Abbott- Thank you, Jim.
ABOUT ARROW EXPLORATION CORP.: Arrow Exploration (AIM: AXL | TSXV: AXL) is a rapidly growing, junior oil-producing company based in the Llanos Basin of Colombia. They have a high-quality portfolio of under-explored, high-growth oil assets. Learn more about them on their website here.