Arrow Exploration (LSE:AXL) - Value Creation of a Low-Cost, High-Growth Producer in the Llanos Basin

Interview with Marshall Abbott, Director & CEO of Arrow Exploration Corp.Our previous interview: https://www.cruxinvestor.com/posts/arrow-exploration-tsxvaxl-45m-drilling-campaign-to-double-oil-output-4826Recording date: 18th March 2024Arrow Exploration presents a compelling investment opportunity as a high-growth junior oil producer focused on the prolific Llanos Basin of Colombia. With a proven management team, attractive asset base, and fully-funded growth plans, Arrow is poised to deliver strong production growth and shareholder returns in 2024 and beyond.The company's investment thesis is underpinned by its recent exploration success in the Carrizales Norte field Tapir Block where Arrow's 2P reserves has significantly increased from 8 million barrels to approximately 12 million barrels. This provides a solid foundation for future development and production growth.Arrow is currently producing approximately 3,300 barrels of oil per day (bopd) and is targeting significant growth in 2024. With a board-approved capital budget of US$45 million, the company plans to drill a combination of vertical and horizontal wells, which are expected to drive production to 4,000-6,000 bopd by year-end. This represents potential growth of 20-80% compared to 2023 levels.Importantly, Arrow's growth plans are fully funded by operating cash flow at current commodity prices with $13-15 million of cash on the balance sheet. This financial strength is supported by a favorable fiscal regime in Colombia, where Arrow pays just a 12% royalty and no taxes while it continues to reinvest capital.Despite its compelling growth outlook, Arrow's shares currently trade at less than 2x cash flow based on its 2024 projections - a significant discount to junior oil and gas producer peers. As the company delivers on its operational targets and increases market awareness, there is potential for significant valuation upside.View Arrow Exploration's company profile: https://www.cruxinvestor.com/companies/arrow-explorationSign up for Crux Investor: https://cruxinvestor.com

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