Source: Stephane Foucaud
May 9, 2023 (Investorideas.com Newswire) This oil and gas company's net cash is expected to triple by 2024 if Brent prices remain stable, noted an Auctus Advisors Research Note.
Arrow Exploration Corp. (AXL:TSX.V; AXL:LSE) has released reports for its 4Q22 results.
Stephane Foucaud of Auctus Advisors reports that the company has performed within expectations.
Arrow managed to lower operating costs compared to the same quarter in 2021 and ended the year with a cash balance of US$13 million.
Foucaud notes that the company was able to recoup losses, writing, "Impairment losses of ~US$9 million were reversed, mostly due to higher commodity prices having a positive impact on the value of the reserves at Capella."
Foucaud reports company expectations for 2023.
In the May 2, 2023, research report, Foucaud notes that Arrow is slowly ramping up drilling efforts at new and existing wells:
The company continues to expect to drill at least ten wells in 2023 (of which three have already been drilled). Arrow is currently moving its drilling rig to the Carrizales Norte field, where the first well will spud shortly.
Two further wells will be drilled on the field. At least two Gacheta wells will then be drilled on the Rio Cravo Este field. Two wells at Oso Pardo will also be drilled.
Meanwhile, in the Llanos Basin, one of the largest 3D seismic surveys in years has been completed at West Tapir. Results are promising, and Arrow expects to be able to drill there for the next one to two years.
It is predicted that Arrow will continue to produce approximately 5,000 barrels of oil per day by the end of this year, leading Foucaud to reiterate the target price of £0.45 per share.
Structure and Predictions
Foucaud noted, "We forecast that the company will hold >US$20 mm in net cash at YE23 and ~US$60 mm at YE24 under our Brent price assumptions. This represents ~100% of the current market cap."
This research report shares recent rating and target price information as well as current market data on the company:
Arrow currently has 307 million diluted shares.
This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.
More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/