Proactive - Interviews for investors - Arrow Exploration reports 2024 reserves growth, highlights Tapir Block potential

Arrow Exploration CEO Marshall Abbott joined Steve Darling from Proactive to discuss the company’s 2024 year-end reserves evaluation, conducted by Boury Global Energy Consultants Ltd. The results highlight significant reserves growth across all categories, reinforcing the high resource density of the Tapir Block in Colombia and Arrow’s ability to drive future growth through drilling. Abbott revealed that proved developed producing (PDP) reserves surged by 92% to 2.38 million barrels of oil equivalent (MMboe), primarily due to the successful horizontal drilling campaign at Carrizales Norte. The net present value (NPV-10) before tax for PDP reserves stands at $71.3 million ($29.89/boe). Additionally, proved (1P) reserves increased by 10% to 5.80 MMboe, driven by discoveries at Alberta Llanos and further horizontal drilling success at Carrizales Norte. The NPV-10 for 1P reserves is $114.57 million ($19.75/boe). Arrow delivered strong reserves replacement ratios of 134% (1P) and 231% (2P), fueled by major discoveries in the Alberta Llanos Carbonera, Guadalupe, and Ubaque formations, as well as continued development at Carrizales Norte. These results emphasize the sustainability of Arrow’s growth strategy and the long-term value of its Colombian and Canadian assets. Looking ahead, Arrow is preparing for a robust 2025 drilling program with a fully funded $50 million capital budget, balancing development drilling and low-risk exploratory wells. The company remains committed to expanding its reserves base and enhancing shareholder value. #proactiveinvestors #arrowexplorationinc #aim #axl #tsxv #axl #OilAndGas #EnergyInvesting #ReservesGrowth #MarshallAbbott #LlanosBasin #OilDiscovery #EnergyStocks #Investing #ProactiveInvestors

Duration: 4m
Broadcast on: 14 Mar 2025
Audio Format: other

very welcome back inside our proactive newsroom and joining me now is Marshall Abbotty is the CEO of Arrow Exploration and Marshall it's great to have you back again. How are you? I'm good Steve, always good to be with you. Yeah you've got some good news out which is always fun to talk about for sure. Your 2024 year end reserves have been released and obviously there's some some real good numbers in there Marshall so tell me a bit of the highlights from your point of view. Well it's been a good year we've had some luck Steve as you've mentioned but in all aspects the reserve report supports the business model and sustainability of that business model. Just as an example PDP reserves are up almost 100 percent we doubled production and we're still able to reduce or replace reserves part of me and so from a reserve replacement ratio we're 230 percent from a recycle ratio we're 2.4 times typically it's a one-time December so when you compare that to our peer group we've performed quite well this year we're proud of it. Yeah Marshall obviously this is a major increase in reserves so that's something that jumps off the page right away. Tell us a little bit of how you're able to do that because it is quite substantial the numbers. Well we had a very exciting discovery 18 months ago in the Obaki and the Janos block the tip here block in the Janos basin and it's taken time to really develop and exploit that asset and we're not done yet so we've added reserves on the periphery of the initial discovery it's much bigger than we thought. As well the wells have outperformed what our forecast relied so once again we've had luck on our side and both drilling and performance issues have proven up more. Marshall maybe you can give us a bit of an explanation on the breakdown of the different reserve categories and and why that's significant for the value of the asset. Well good question Steve and again the results are quite heady so from a proven develop producing perspective which is where most valuations take place on a PV10 number we're 2.38 million barrels and then on a total proven basis we're 5.3 million barrels so two very positive results on the proven side of the equation so it's it bodes well not only for last year but the year to come. Yeah also the reserve replacement ratios continue to be strong as well. Talk to me a bit about why that number is interesting because it really looks at the future of of the asset right? Well once again Steve you're correct it's the sustainability of the asset at 2.3 times triple R a lot of entities have issues getting to one times triple R so from that perspective it's been a good year and that's even with a much more conservative price deck that our third party engineers used so we're happy with the number and we expect with what we're going to do this year that we're going to be able to replicate or even do better than that number. Yeah I want to talk to you about 2025 because obviously you're still drilling in fact there was some drilling that wasn't even used in this particular report so obviously there's a lot a lot of things going on a lot of exploration that's happening there take me through you know what was left out and really what's ahead in 2025. So before year end we drilled and discovered the Ubaki reservoir in the Alberta prospect we call it the Alberta Janos prospect and so that well was actually on stream just before December 31st and it proved up a brand new exploration discovery that again we're quite proud of and we've got very thick pay zone in the Ubaki contributor zone and in the carbon Rc7 which has been the traditional zone that we exploit and we also had log hydrocarbon indications in the Guadalupe reservoir which is quite thick so we're pretty excited with that and so we were only able to claim that PDP reserves on the Ubaki reservoir so the the other reservoirs that we're looking at will get credit for in 2025 and they'll be excellent additions based on the performance to date. Yeah well if 2024 is any indication it's going to be very interesting 2025 for sure Marshall thanks so much for the update I appreciate it and I know we're going to be talking again real soon. Thanks Steve, appreciate your support. Yeah Marshall Abbott the CEO of Arrow Exploration.