Sharecast - The AIM-traded firm said its board had approved a 2024 work programme with a net capital budget of $45m, funded entirely through existing cash reserves and operating cash flow.
Its primary focus for the year would be on the Tapir block and the development of the Carrizales Norte (CN) field.
Arrow said it intended to employ two rigs throughout the year on the Tapir block, with a third rig used as needed.
The capital expenditure emphasis would be on development, infill drilling, and low-risk exploration prospects.
In the CN field, Arrow said it was planning to drill three horizontal wells targeting the 110-foot oil column established by initial wells in the Ubaque reservoir in 2023.
Four Carbonera C7 vertical wells would also be drilled at CN on a broad structural high.
The zones had shown promising production potential in the initial drilling phase.
Another vertical well at CN would focus on Ubaque production, providing crucial data for planned horizontal wells.
Arrow (LON:AXLA) said it would also prioritise low-risk exploration in the Mateguafa, Baquiano, and Carrizales Noroeste prospects, each potentially contributing significantly to production, reserves, and cash flow.
The Tapir Block, in which Arrow holds a 50% beneficial interest, currently boasts 11 producing wells, including Rio Cravo Este 7 and Rio Cravo Este 8.
Both RCE-7 and RCE-8, completed in the C7, had exceeded expectations with a combined gross production of over 1,700 barrels of oil per day, equivalent to 850 daily barrels net.
The RCE complex produced 1.7 million barrels last year, with plans for additional development locations.
Arrow said the Middle Magdalena Valley Basin had successfully drilled and tested Oso Pardo-3 and Oso Pardo-4 wells.
Reservoir damage attributed to high mud weight during drilling was addressed through stimulations, resulting in positive outcomes.
Reservoir stimulations were planned for early 2024, with the wells expected to start production.
Meanwhile, Oso Pardo-1, which was offline at year-end due to a production pipe issue, was set to be reactivated early in 2024 following workover completion.
However, Capella remained offline as discussions between the operator and local communities continued.
"Arrow is proud of the work completed and results for 2023, our average production rates more than doubled over the year and the company proved it was able to execute an aggressive capital work programme," said chief executive officer Marshall Abbott.
"The company believes it is capable of similar production growth in 2024.
"Arrow discovered a new, multi-zone, core area and enjoyed a positive step change in reserves."
Abbott said Arrow was also able to complete a 100 square kilometre 3D seismic programme and develop numerous new prospects.
"In 2024, the company plans to continue the high-paced growth profile with development drilling in the Ubaque and Carbonera formations.
"The 2023 results demonstrate that the Carbonera remains a solid high-volume producer while the Ubaque formation has proven production that extends beyond the CN complex.
"Multiple development locations are anticipated based on current results, including horizontal drilling in the Ubaque reservoir in the CN field."
Horizontal wells are typically produced at materially higher rates with marginal cost increases compared to vertical wells, Marshall Abbott explained, increasing recovery and the economics of thick pay oil fields.
"As well, additional development drilling is contemplated from the RCE pad.
"Arrow's fully funded, low-risk drilling programme for 2024 continues to build momentum across our extensive portfolio.
"Arrow is poised to achieve significantly higher production and commensurate cash flow through the 2024 calendar year."
At 1103 GMT, shares in Arrow Exploration were down 2.9% at 17.48p.
Reporting by Josh White for Sharecast.com.