Although perhaps most in the market are looking at the contagion from Silicon Valley Bank, and so far assuming that one plus one equals three, there are companies on the stock market who are simply getting on with business, and are nothing to do with tech sector lending. Today saw Arrow Exploration serve up a steady as we go update, regarding drilling activity at Rio Cravo Este (RCE) on the Tapir Block in the Llanos Basin of Colombia.
Today the company said the results of the RCE-3 and RCE-4 wells, together with its confidence in the outcome of the RCE-5 well and its upcoming program at Carrizales Norte. It maintains it will achieve the stated objective of achieving a production rate of 3,000 boe/d within 18 months of its AIM listing. In fact, if the company had not tied itself to the mast of such a target one would imagine the shares might have taken off from the IPO rather faster than they have.
The stock has essentially been in consolidation mode since May, rather longer than it should have. This suggests that once decent line of sight is delivered on RCE’s 3,4 and 5, we should be treated to a significant break higher for the shares. Indeed, 22p at the top of the rising trend channel from last May, by this May would appear quite a conservative scenario.
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