2024 Year-End Reserves Update
2024 PDP reserves increased 92% to 2.38 MMboe; 1P and 2P replacement ratios 134% and 231%.
- PDP reserves 2.38 MMboe (prior 1.239 MMboe)
- 1P reserves 5.80 MMboe (prior 5.292 MMboe)
- 2P reserves 13.62 MMboe (prior 11.847 MMboe)
- 2P NPV-10 before tax $284.9 million
- 1P reserves replacement ratio 134%
- 2P reserves replacement ratio 231%
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CALGARY, March 13, 2025 - Arrow Exploration Corp. (AIM: AXL; TSXV: AXL) is pleased to announce the results of its 2024 year-end reserves evaluation by Boury Global Energy Consultants Ltd. ("BouryGEC").
All reserves volume figures stated below are on a Working Interest Gross Reserve basis. Currency amounts are in United States dollars (unless otherwise indicated) and comparisons refer to December 31, 2023.
Arrow's reserves growth in all categories demonstrates the high resource density of our Tapir block. Further, moving forward, the Company is confident that it can continue to grow through the drill bit at Tapir.
Highlights
Proved Developed Producing ("PDP") reserves:
o Increased by 92% to 2.38 million barrels of oil equivalent ("MMboe"), driven principally through the successful horizontal drilling campaign in Carrizales Norte, on the Tapir Block, Colombia; and
o Net present value before tax, discounted at 10% ("NPV-10") is $71.3 million ($29.89/boe) for PDP reserves.
Proved ("1P") reserves:
o Increased by 10% to 5.80 million barrels of oil equivalent ("MMboe"), driven principally through the discovery of the Alberta Llanos field and the successful horizontal drilling campaign in Carrizales Norte, both on the Tapir Block, Colombia; and
o Net present value before tax, discounted at 10% ("NPV-10") is $114.57 million ($19.75/boe) for 1P reserves.
Proved plus Probable ("2P") reserves:
o Increased by 15% to 13.62 MMboe;
o Before tax NPV-10 is $284.9 million ($20.92/boe) for 2P reserves.
Proved plus Probable plus Possible ("3P") reserves:
o Increased by 25% to 22.28 MMboe;
o Before tax NPV-10 is $524.1 million ($23.52/boe) for 3P reserves.
- Strong well performance that translated into a higher reserves volumes in comparison with the year-end 2023
- Despite using a lower forecast price deck than 2023, before tax NPV10 values have increased in the PDP, 2P and 3P categories;
- Before tax NPV-10 per share of US$0.40/share, US$1.00/share, and US$1.83/share for 1P, 2P, and 3P reserve categories, respectively;
- Excellent Reserves Recycle Ratios of 2.7 for 1P, 4.6 for 2P and 8.7 for 3P; and
- Reserves Replacement Ratios of 1.34 for 1P, 2.31 for 2P and 4.39 for 3P
CEO Commentary
Marshall Abbott, CEO of Arrow, commented: "Our exciting growth story continues and we are pleased to be able to report further material reserves increases from our extensive acreage in Colombia. Arrow delivered significant increases in volumes of 1P, 2P and 3P reserves in 2024, due to the Alberta Llanos Carbonera, Guadalupe and Ubaque discoveries and successfully drilling horizontal wells at Carizales Norte. Reserves replacement ratios amounted to 134% 1P and 231% 2P, showing the sustainability of our business model to continue its growth trajectory into the future. We are pleased with the results of the BouryGEC reserves evaluation, which reinforces the significant value of our Colombian and Canadian assets.
"The BouryGEC 2024 report does not reflect the most recent drilling activity at Alberta Llanos or Carrizales Norte where particularly AB-3 (drilled and on production in Q1 2025) and CN HZ-9 (drilled in Q1 2025 and currently cleaning up) have not been incorporated into the report. The CN HZ-10 well has spud, as part of the further development of the Carrizales Norte field to the north of the existing development with results to be reported in due course.
"Arrow's prospect inventory is multifaceted and demonstrates the hydrocarbon density of the Tapir block in the fertile Llanos Basin. Over the rest of 2025, we look forward to a successful drilling campaign on a fully funded $50MM capital budget that is balanced between development and low risk exploratory wells".
2024 Year-End Reserves Summary
Management has presented below a summary of Arrow's reserves as at December 31, 2024, on a working interest gross reserves basis, which have been estimated by BouryGEC, an independent qualified reserves evaluator, in a reserves report with an effective date of December 31, 2024. The figures in the following tables have been prepared in accordance with the standards contained in the most recent publication of the Canadian Oil and Gas Evaluation Handbook (the "COGEH") and the reserves definitions contained in National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). In addition to the summary information disclosed in this announcement, more detailed information will be included in Arrow's annual reserves evaluation for the year ended December 31, 2024 to be filed on SEDAR (www.sedar.com) and posted on Arrow's website (www.arrowexploration.ca).
Brent Crude Oil Price and AECO Gas Price Forecasts in BouryGEC Reserves Evaluation
| Year-End Forecast: | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 |
|---|---|---|---|---|---|---|---|
| Brent (US$/bbl) - Dec. 31, 2024 | $76.50 | $78.50 | $80.00 | $81.50 | $83.50 | $85.17 | $86.87 |
| AECO-C Spot (C$/MMbtu) | C$2.49 | C$3.47 | C$3.64 | C$3.90 | C$4.03 | C$4.17 | C$4.30 |
Year-End Working Interest Gross Reserves - Breakdown by Category and Country (Mboe)
| 2024 | 2023 | Change | % Change | |
|---|---|---|---|---|
| Proved developed producing | 2,384 | 1,239 | 1145 | 92% |
| - Colombia assets (core) | 1889 | 1011 | ||
| - Colombia assets (non-core) | 0 | 0 | ||
| - Canada assets | 495 | 228 | ||
| Proved developed non-producing | 404 | 714 | (310) | -43% |
| - Colombia assets (core) | 198 | 503 | ||
| - Colombia assets (non-core) | 206 | 211 | ||
| - Canada assets | 0 | 0 | ||
| Proved undeveloped | 3,017 | 3,339 | (322) | -10% |
| - Colombia assets (core) | 1,433 | 1757 | ||
| - Colombia assets (non-core) | 1,584 | 1,582 | ||
| - Canada assets | 0 | 0 | ||
| Total Proved | 5,805 | 5,292 | 513 | 10% |
| Probable | 7,813 | 6,555 | 1258 | 19% |
| - Colombia assets (core) | 4,511 | 3,292 | ||
| - Colombia assets (non-core) | 2,758 | 2,762 | ||
| - Canada assets | 544 | 501 | ||
| Total Proved plus Probable | 13,618 | 11,847 | 1771 | 15% |
| Possible | 8,670 | 5,958 | 2712 | 46% |
| - Colombia assets (core) | 6,915 | 4,349 | ||
| - Colombia assets (non-core) | 1,508 | 1,435 | ||
| - Canada assets | 247 | 174 | ||
| Total Proved plus Probable & Possible | 22,288 | 17,805 | 4483 | 25% |
- "Core" assets include Arrow's share of reserves in the Tapir Block, the Santa Isabel Block (Oso Pardo), and Mateguafa. Arrow's 50% interest in the Tapir Block is contingent on the assignment by Ecopetrol SA of such interest to Arrow.
- "Non-core" assets include the Ombu Block (which includes the Capella Field)
- "Canada" assets include Fir and Pepper
Year-End Net Present Value at 10% - Before Tax ($ Thousands)
| Category | 2024 | 2023 | % Change |
|---|---|---|---|
| Proved | |||
| Developed Producing | 71,253 | 46,021 | 55% |
| Developed Non-Producing | 8,311 | 16,544 | -50% |
| Undeveloped | 35,009 | 72,310 | -52% |
| Total Proved | 114,572 | 134,875 | -15% |
| Probable | 170,347 | 145,348 | 17% |
| Total Proved plus Probable | 284,919 | 280,223 | 2% |
| Possible | 239,228 | 164,793 | 45% |
| Total Proved plus Probable & Possible | 524,147 | 445,016 | 18% |
Year-End Net Present Value at 10% - After Tax ($ Thousands)
| Category | 2024 | 2023 | % Change | |||||
|---|---|---|---|---|---|---|---|---|
| Proved | ||||||||
| Developed Producing | 50,373 | 34,255 | 47% | |||||
| Developed Non-Producing | 5,794 | 11,137 | -48% | |||||
| Undeveloped | 27,165 | 33,270 | -18% | |||||
| Total Proved | 83,332 | 78,662 | 6% | |||||
| Probable | 78,064 | 73,113 | 7% | |||||
| Total Proved plus Probable | 161,396 | 151,775 | 6% | |||||
| Possible | 118,451 | 85,323 | 39% | |||||
| Total Proved plus Probable & Possible | 279,847 | 237,098 | 18% | |||||
| Forecast Revenues and Costs - Undiscounted ($ millions) | ||||||||
| Category | Revenue (3) | Royalties | Operating Cost (2) | Development Cost | Abandonment & Reclamation | BT Future Net Revenue (1) | Income Taxes | AT Future Net Revenue (1) |
| Total Proved | 312.8 | 31.1 | 69.0 | 64.7 | 8.7 | 139.4 | 37.0 | 102.4 |
| Total Proved plus Probable | 755.8 | 78.0 | 170.5 | 110.2 | 12.6 | 384.4 | 158.5 | 225.9 |
| Total Proved plus Probable & Possible | 1,347.5 | 146.8 | 288.6 | 121.3 | 14.5 | 776.3 | 350.2 | 426.1 |
- BT = Before Taxes and AT = After Taxes
- Operating Cost less processing and other income
- Revenue includes Petrolco Income
2024 Year-End Working Interest Gross Reserves Reconciliation (Mboe)
| Total Proved | Total Proved plus Probable | Total Proved plus Probable & Possible | |
|---|---|---|---|
| 31-Dec-23 | 5,292 | 11,847 | 17,805 |
| Technical Revisions | 1,186 | 1,578 | 2,799 |
| Discoveries | 307 | 1,167 | 2,529 |
| Economic Factors | 319 | 327 | 455 |
| Production | (1,300) | (1,300) | (1,300) |
| 31-Dec-24 | 5,805 | 13,619 | 22,288 |
About Arrow Exploration Corp.
Arrow Exploration Corp. (operating in Colombia via a branch of its 100% owned subsidiary Carrao Energy S.A.) is a publicly traded company with a portfolio of premier Colombian oil assets that are under-exploited, under-explored and offer high potential growth. The Company's business plan is to expand oil production from some of Colombia's most active basins, including the Llanos, Middle Magdalena Valley (MMV) and Putumayo Basin. The asset base is predominantly operated with high working interests, and the Brent-linked light oil pricing exposure combines with low royalties to yield attractive potential operating margins. Arrow's 50% interest in the Tapir Block is contingent on the assignment by Ecopetrol SA of such interest to Arrow. Arrow's seasoned team is led by a hands-on executive team supported by an experienced board. Arrow is listed on the AIM market of the London Stock Exchange and on TSX Venture Exchange under the symbol "AXL".
Reserves Categories
Glossary
Bbl/d: Barrels per day
$/Bbl: Dollars per barrel
Mcf/d: Thousand cubic feet of gas per day
$/Mcf: Dollars per thousand cubic feet of gas
Boe/d: Barrels of oil equivalent per day
$/Boe: Dollars per barrel of oil equivalent
PDP: Proved Developed Producing
1P: Proved Reserves
2P: Proved plus Probable Reserves
3P: Proved plus Probable plus Possible Reserves
Mboe: Thousands of barrel of oil equivalent
MMbtu: Millions btu
MMboe: Millions of barrels of oil equivalent
Mbtu: Thousands btu
Mboe: Thousands of barrels of oil equivalent
Working Interest Gross Reserves: The reserves attributable to the Company's license working interest pre-taxes and royalties
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.