Arrow Exploration Delivers Significant Reserves Growth in 2024
Why we think this is very good
The RNS provides a highly positive update on Arrow Exploration's 2024 reserves, with substantial increases across all categories. The company has demonstrated its ability to grow reserves through successful drilling campaigns, leading to new discoveries and increased production. The strong reserves replacement ratios and improved NPV-10 values suggest the company is well-positioned for sustainable growth.
Key Points
- 92% increase in Proved Developed Producing (PDP) reserves to 2.38 MMboe
- 10% increase in Proved (1P) reserves to 5.80 MMboe
- 15% increase in Proved plus Probable (2P) reserves to 13.62 MMboe
- 25% increase in Proved plus Probable plus Possible (3P) reserves to 22.28 MMboe
- Reserves growth driven by successful drilling campaigns in the Tapir Block, including the discovery of the Alberta Llanos field
- Excellent reserves replacement ratios of 134% for 1P and 231% for 2P
- Increased NPV-10 values despite using a lower price deck
Summary
Arrow Exploration has delivered a highly positive update on its 2024 year-end reserves, reporting significant increases across all categories. The company's Proved Developed Producing (PDP) reserves grew by 92% to 2.38 million barrels of oil equivalent (MMboe), driven by successful horizontal drilling campaigns in the Tapir Block in Colombia. The company also saw a 10% increase in Proved (1P) reserves to 5.80 MMboe and a 15% increase in Proved plus Probable (2P) reserves to 13.62 MMboe. The reserves growth was attributed to the discovery of the Alberta Llanos field and the successful drilling in Carrizales Norte. The company's reserves replacement ratios were excellent, at 134% for 1P and 231% for 2P, demonstrating the sustainability of its business model. Despite using a lower price deck, the company's net present value before tax, discounted at 10% (NPV-10), increased for the PDP, 2P, and 3P reserve categories.