Arrow Exploration (AXL,) a Colombia-focused hydrocarbon explorer, has announced today the results of its 2022 year-end reserves evaluation by Boury Global Energy Consultants. 

Before-tax NPV-10 vales increased 97% for 1P reserves and 51% for 2P reserves, due to reserves growth and an increase in the oil price forecast. Arrow said its 1P reserves increased by 11% to 3.37 million barrels of oil equivalent (MMboe), driven principally through uplift at Tapir (Rio Cravo), Colombia. Net present value before tax, discounted at 10% (NPV-10) is $57.9 million ($17.15/boe) for 1P reserves. 

2P reserves increased by 4% to 7.69 MMboe, and NPV-10 sits at $127.3 million ($16.56/boe) for 2P reserves. 3P reserves increased by 1% to 11.68 MMboe and NPV-10 is $205.8 million ($17.57/boe) for 3P reserves.

Marshall Abbott, CEO of Arrow, commented: "Arrow delivered an increase in volumes and pre-tax values across 1P, 2P and 3P reserves in 2022. We are pleased with the results of the BouryGEC reserves evaluation, which reinforces the significant value of our Colombian and Canadian assets. The BouryGEC 2022 report of course does not account for the current drilling campaign at Rio Cravo Este, where, given the encouraging results to date, we might expect further reclassifications and increase in reserves.  Additionally, with the imminent drilling of the Carrizales Norte wells, we would expect to continue growing reserves in the near future.”

View from Vox 

A positive result from Arrow, demonstrating the positive additions from the 2022 drilling programme, coupled with the benefits of higher market oil prices, balanced by produced volumes.

Currently, Arrow has drilled two Rio Cravo Este wells, RCE-4 and RCE-3, both of which are "flowing better than expected", alongside the RCE-5 well being spudded and set to reach target depth at the end of this month. Arrow has a full programme of up to ten wells planned for the full year, including additional Rio Cravo Este wells, alongside higher-risk wells into the Carrizales Norte prospect, for which Arrow has completed supporting infrastructure.

Arrow remained well funded at the end of 2022, with gross cash of US$13m, augmenting production cash flows. Looking forward, the continued strong production rates from existing tied-in wells along with encouraging results from new wells will help Arrow to meet its objective of reaching a production rate of 3,000 boe/d within 18 months of AIM listing (October 2021).

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