TSXV:AXL - Post Discussion
Post by
EagleHasLanded on Dec 23, 2022 6:26pm
Malcy comments
Malcy:
https://www.malcysblog.com/2022/12/oil-price-san-leon-arrow-wentworth-copl-and-finally/
This is further good news for Arrow who have updated on a number of areas where progress is being made and 2023 looks to be shaping up very nicely indeed. A rig to RCE for three infill wells in the Carbonera Sandstone in Q1 2023 should be like RCE-2 and RCS-1 and produce c.850 b/d net which was well above expectations. It should be noted that RCE-2 paid out in 37 days at a net cost of$4.2m. RCE-3 in January will be followed by the 4 and 5 wells and then on to the Gacheta Sandstone in Q3.
Arrow are also working on Carrizales Norte where work is continuing to prepare for drilling in mid 2023, possibly with a second rig and spread cost and eventually production through the seasons. Finally the company has commenced 3D seismic at the Tapir Block where drilling could start before the end of next year.
With a workover programme and cash of $14m Arrow are in a very strong position, they can fund all the work that they have announced so far and I would expect a significant increase in production from these operations.
My TP of 50p looks even more attractive now the shares are back at 17p having fallen in line with the sector in line with the drop in the oil price. Given that I have positive views on oil next year I think that Arrow should be a top performer and will of course be in the Bucket List.
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