Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF) earlier this week updated investors on recent drilling results and its outlook for 2026, highlighting strong operational performance and continued development momentum.
The company said the HZ7 horizontal well at Mateguafa is producing between 1,800 and 2,000 barrels per day with minimal water cut. It described the well as its best-performing horizontal to date.
Arrow said the location is part of a multi-zone discovery with further drilling potential, including additional horizontal and vertical wells.
“From the perspective of operational success, it’s been an awesome year,” CEO Marshall Abbott said. “Our cash flow seems to be able to outpace CapEx. We’re protecting the balance sheet and we’re happy where we are.”
According to Arrow, the well performance compares favourably to previous Carrizales Norte wells and noted that each new well continues to prove up additional acreage. Arrow reported that it has now developed four of the six identified fault blocks within the Tapir Block.
Despite some marginal wells in 2025, the company said these are still expected to generate returns. It highlighted that cash flow for the year has outpaced capital expenditure, allowing Arrow to end 2025 with between US$8 million and US$9 million in cash. The company added that it maintains access to a US$20 million facility, which could support acquisitions or a second drilling rig.
Looking ahead, Arrow said that development will continue across all four of its active pads. Exploration drilling is also planned at the Icaco prospect, which it described as a three-way structural closure with the largest aerial extent of any fault the company has targeted to date. Drilling at Icaco is expected in the second or third quarter of 2026.
In addition to Icaco, Arrow plans to advance drilling on discoveries at Mateguafa, Alberta Llanos, and RCE. The company said it anticipates a strong production exit rate and a solid cash position at the end of 2026.