Arrow Exploration Corp.'s (AXL:TSX.V; AXL:LSE) Carrizales Norte-1 (CN-1) exploration well has reported a total of 148 feet of net oil pay measured depth (128 feet TVD) across three very high-quality sands, noted Auctus Advisors analyst Stephane Foucaud in a May 15 research note.
This is the biggest net oil pay from a well on Tapir so far. He also pointed out that due to reservoirs encountered at CN-1 being slightly deeper than those at Rio Cravo, pressure is expected to be higher, leading to raised production rates.
No reserves have been booked for the field yet. Currently, Auctus only carries 1.8 mmbbl net p50 prospective resources for Carrizales Norte.
Foucaud noted, "This is very close to the YE22 net 2P reserves attributed to the Rio Cravo Este field but could be too conservative."
Results of CN-1 have also derisked the FY23 production profile with more locations to drill.
With this, Foucaud commented, "We continue to forecast YE23 production at ~5 mboe/d. The CN-1 well is expected to start production in June."
Structure and Predictions
In his report, Stephane Foucaud increased Arrow Exploration's target price from £0.45 per share to £0.50.
Foucaud's research also shared current market data on the company:
- Price: £0.19
- Price Target: £0.50
- Market Cap: US$72 million
Foucaud expects an implied total return of 163%, and notes that Arrow has an enterprise value of US$53 million.
- Katherine DeGilio wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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Disclosures for Auctus Advisors, Arrow Exploration Corp., May 15, 2023
Arrow Exploration Corp. (“Arrow” or the “Company”) is a corporate client of Auctus Advisors LLP (“Auctus”). Auctus receives, and has received in the past 12 months, compensation for providing corporate broking and/or investment banking services to the Company, including the publication and dissemination of marketing material from time to time. MiFID II Disclosures This document, being paid for by a corporate issuer, is believed by Auctus to be an ‘acceptable minor non-monetary benefit’ as set out in Article 12 (3) of the Commission Delegated Act C(2016) 2031 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. It is produced solely in support of our corporate broking and corporate finance business. Auctus does not offer a secondary execution service in the UK. This note is a marketing communication and NOT independent research. As such, it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and this note is NOT subject to the prohibition on dealing ahead of the dissemination of investment research. Author The research analyst who prepared this research report was Stephane Foucaud, a partner of Auctus.
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