Arrow Exploration reports strong revenue growth in Q3 2024
- Arrow Exploration Corp. announced operational updates and financial results for Q3 2024, showing a revenue increase of 53%.
- The CNB HZ-7 well, the sixth horizontal well on its Carrizales Norte pad, is now producing oil, enhancing planned expansions in the region.
- Arrow is set to drill multiple wells in 2025, indicating strong growth prospects despite fluctuations in oil and gas prices.
In Calgary, Alberta, Arrow Exploration Corp. has announced its operational updates and interim results for the third quarter of 2024. In this quarter, the company generated a notable total oil and natural gas revenue of $21.3 million, reflecting a significant increase of 53% compared to the same period in 2023. This growth can be attributed to robust production from new wells at the Carrizales Norte field. During this time, the CNB HZ-7 well was brought into production, complementing the company's commitment to expanding its operations across key Colombian hydrocarbon basins. The well, which is the sixth horizontal well on the Carrizales Norte "B" pad, was drilled to a total measured depth of 13,893 feet, with a horizontal section stretching approximately 3,612 feet. It was anticipated that this well would have higher water cut and lower production; however, the outcomes from the HZ-7 well have derisked further development of horizontal drilling in the northern and southern sections of Carrizales Norte. Arrow's cash position on November 1, 2024, stood at around $19 million, enabling it to pursue further drilling prospects and operational developments. In line with its growth strategy for 2025, the company has approved a budget that outlines plans to drill up to 23 wells on the Tapir block, while focusing on low-risk exploration wells at the Alberta Llanos prospect for the remainder of 2024. Despite some fluctuations in market prices, particularly for natural gas, Arrow has effectively managed to maintain strong operating netbacks. The company reported a decrease in natural gas prices, which fell significantly compared to 2023, while crude oil prices experienced a more stable trajectory. In Q3 2024, Arrow incurred capital expenditures totaling $7 million, primarily aimed at advancing their drilling activities in the Colombian assets, illustrating their commitment to maintaining production growth and developing their portfolio amidst a competitive energy market.