Proactive Investors - Arrow Exploration Corp (LON:AXLA) has today confirmed material increases in its reserves base in Colombia, following a year of operational success.
The company, in a statement, has announced its 2023 year-end reserves report which included a 57% proved (1P) reserves, to 5.29 million barrels, and a 54% rise in proved and probable (2P) reserves, to 11.8 million barrels.
In valuation terms (NPV), 1P reserves were marked at $134.88 million whilst the 2P valuation was $280.22 million.
Proved, probable and possible (3P) reserves, meanwhile, increased 53% to 17.8 million barrels and were valued at $445.02 million.
The company noted that its ‘find and development’ cost of reserves was marked at US$5.41 per barrel oil equivalent (boe), US$2.42/boe, and US$1.61/boe respectively for 1P, 2P and 3P reserves.
Arrow, meanwhile, highlighted that the reserve report – authored by consultant BouryGEC – does not include any barrels for the current and ongoing new well campaign at the 3field which has so far added the CN-5, CN-6 and CN-7 wells in the first quarter of 2024.
Operations at Carrizales Norte is continuing with the N-8 will spud within the next few weeks to test a material extension to the north of the existing footprint of the field.
Arrow also highlighted that the next drilling also adds horizontal wells into the thick Ubaque reservoir. This move, if successful, is expected to result in a step change in production and lead to booking of substantial additional reserves, it added.
“Arrow's prospect inventory is multifaceted and supports the hydrocarbon density of the Tapir block in the fertile Llanos Basin. We look forward to a successful drilling campaign on a fully funded $45MM capital budget that is weighted towards infill and development wells,” chief executive Marshall Abbott said in a statement.
Abbott added: "Our exciting growth story continues, backed by strong demand we are pleased to bring forward further material reserve increases from our extensive acreage in Colombia.
“Arrow delivered significant increases in volumes and pre-tax values of 1P, 2P and 3P reserves in 2023, due to the Carbonera and Ubaque discoveries at Carrizales Norte and successfully drilling at Rio Cravo Este, which exceeded expectations.
“Reserves replacement ratios amounted to 343% 1P and 624% 2P. We are pleased with the results of the BouryGEC reserves evaluation, which reinforces the significant value of our Colombian and Canadian assets.”