Arrow Exploration Corp V.AXL

Auctus update from today

[Rob0012]

Very encouraging drilling results at Colombia well • The RCE-2 well has encountered a total net pay of ~80’ across five separate known horizons.
Importantly the C7 sand (the primary target) was encountered 10’ higher than expected and 25’ higher than in the RCE-1 well. Overall 30’ of pay was encountered in the C7 sand. This suggests larger volumes than expected. 
• The well also encountered a total ~50’ of pay in the Gacheta sands, including 16’ in the C sand and 25’ in new zones that were not encountered in the RCE-1 well. This also suggests potentially larger volumes than initially anticipated.
• The quality of the sands is very high with ~30% porosity.
• The Gacheta sands will now be tested and will potentially be put in production (assuming a good result). If the Gacheta does not deliver high flow rates, the shallower C7 sand (the primary target) will be tested and put in production.
• This is a very good start for the drilling campaign and, pending the results of the flow tests, we re-iterate our £0.45 per share target price. We continue to forecast that Arrow could produce ~1,500 bbl/d of oil in 4Q22. Securing a licence expansion at Oso Pardo in the Middle Magdalena Velley could add 14 mmbbl of oil reserves to Arrow (unrisked NAV of ~£0.90 per share).

[goldboyz2]

Hopefully RCE 2 comes back producing over 1000bpd so arrows Net pay is 500 bpd.....slightly higher then the 360bpd AXL management expects to hit from RCE 2.  With RCE 2 almost in production with and RCS 1 being spudded beggining of May should add close to 1000bpd by end of May Hey Robb why Q4 ? shouldnt we be producing 1500bbl by end of May with RCE 2 and RSC 1 ?  "We continue to

[EagleHasLanded]

25 feet in unknow zone could mean AXL struck luck and found a Gacheta embedded Mirador zone. Historic data tells of 800-1500 bbls oils if indeed found. 25 feet of Mirador would mean upper range of pay zone compared to other finds. 

[goldboyz2]

Based on previous interviews and Nrs i believe the company already expected a certain pay zone.  AXL CEO Marshall said they expect minimum 360bpd net to arrow which would mean north of 800bpd. Marshall has stated these wells could produce 2000 bpd. Nonetheless all good news moving forward.  Sp is still dragging as we are only 5-7  pennies up from Jan levels. With drilling underway

[Rob0012]

~1,500 bbl/d of oil in 4Q22.  Maybe maby excluding NG? I'll ask... Rob

[goldboyz2]

Hmmmm That makes sense Rob0012 AXL is suppose to drill 3-4 wells from April 2 until Q4.  AXL is already producing over 400bbl/d of oil right now if they only drill 3 wells and produce 360 bpd off each well would put us around 1500 bbl/d  If they drill 4 wells that should be closer to 2000 bbl/d based on the 360 bbl/d minimum the company has predicted.  Cementing completed today

[Rob0012]

Arden and Auctus have been very conservative in their reports and targetted SP.  They're supportice of AXL since 8 pences and below...it's now 15...and projecting 45.  I'm very excited with all's going on in Colombia...but the freakin elections!  All Co investors from that country are on the edge.  I don't know one O & G play from Columbia that is not

[goldboyz2]

Why 30 cents Rob0012 ? I figured AXL is already undervauled and with positive news would hope we fly past the low 30s and stabilize in the mid 30s to 40 cent range.  With RCE 2 about to go into production and with RSC 1 spudding first week or two of May seems like it would get more love then 30 cents in the coming weeks.  Canadian exposure should be pumping out now for promo/ id assume