Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF) described its first quarter as “exciting” as it reported a 36% increase in total oil and gas revenue, reaching US$19.51 million.
First quarter earnings (EBITDA) climbed 15% to US$11.53 million, whilst net income amounted to US$2.66 million for the quarter.
It comes as the growing oil and gas group continues to develop its fields in Colombia, with new horizontal wells unlocking higher volumes.
Production increased to 4,085 barrels of oil equivalent per day (boe/d), up 50% compared to the same period a year ago.
Operating cash flow totalled $14.43 million, and the company ended the quarter with $24.95 million in cash, after $11.38 million of capex in the three-month period.
Arrow drilled two development wells, AB 2 and AB 3, in the Alberta Llanos field. It also completed a 90 km² seismic survey on the southeast Tapir Block.
Post-quarter, Arrow spudded the AB HZ4 horizontal well and entered into a US$20 million prepayment agreement with an integrated energy firm to market its Colombian oil.
"The first quarter of 2025 has been exciting for Arrow,” chief executive Marshall Abbott said in a statement.
“The two wells, AB 2 and AB 3 at Alberta Llanos, have highlighted the potential for horizontal development in the Ubaque as well as follow-up zones in the C7 and Guadalupe."
Abbott added: "During the dry summer months in the Llanos basin, the company has developed a new road system from the Carrizales Norte pad to the Capullo pad, the Mateguafa Oeste pad and the Mateguafa Attic pad.
“These pads will be utilised in the company's planned drilling program for the remainder of 2025. The company has secured a second rig which is expected to spud the first of four wells at RCE in early June."
Abbott, meanwhile, highlighted that Arrow retains “very healthy netbacks” on its production, in spite of the oil price volatility seen in global markets through early 2025.
Looking ahead, the Arrow boss says the focus is on growing production, continuing development at the Carrizales Norte, Rio Cravo Este and Alberta Llanos fields.
Arrow also intends to explore low-risk new prospects in its Tapir block.