From HaT on ADVFN- conversation with axl Had an excellent broker call with Arrow Chairman and Finance Director. Marshall was missing in action as he had to fly home but his two deputies were very informative
Will exit 2023 3500 bopd plus, 10000 boepd within two years. 11 wells next year.
First well in CN will drill down vertically to test the area behind the second fault line which showed up on the 3D. If successful they will finish this as a horizontal producer in what will be another discovery and additional reserves. If no oil, they will go across the fault and drill horizontally in the discovered zone that CN 1/2/3 have shown up. Very smart play imho. Effectively an exploration well which becomes a horizontal producer one way or another.
The Ubaque could be huge, look at the new presentation, stratigraphic play over 80km €¦The 3 D has thrown up multiple three way closures up against faults that give over 89% COS
They have had 100% hit rate. All commercial wells. The worst well took 4 months to pay out, the best 37 days. Net backs on the c7 $65, Ubaque $57 at $90 oil.
CN3- They plugged off the Ubaque, perforated the C7, cleaning up now, news in a day or two€¦€™I am still smiling, not unhappy€™
Osso Pardo , Canacol and ConocoPhillips Phillips own the deep rights. Cannot be developed as it needs fracking. Canacol happy to give up rights, ConocoPhillips want some compensation from ANH to relinquish. ConocoPhillips are exiting Colombia. ANH v happy to give license extension but first need to settle ConocoPhillips issue. Patience needed
Less focus on M&A as they have 3-5 years of running room on Tapir. Will get to 10000bopd in 2 years. The horizontal wells will speed up process, and increase recovery (24%in CPR to 35%+) and reserves.
They are not interested in selling, they have had enquiries. €˜Too early€™. Get to 10000bood and then get full value
They have spent $6m drilling on CN and unlocked $150m of value of reserves in a good basin.
Commitment from Canacol and Board to exercise warrants and hold. Warrants will bring in $4.5m more cash.
Two Exploration wells next year on 3D generated prospects. Look v juicy . €˜ Liquid gold€™ was Marshall€™s comment. C7 will be developed by vertical wells, ubaque horizontal.