Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF) told investors 2025 production rose 13% as drilling in Colombia’s Tapir block lifted volumes and offset a US$7.6 million impairment charge that pulled annual profit sharply lower.
The AIM and TSX-V-listed oil and gas group reported net income of US$1.4 million for the year to 31 December 2025, compared with US$13.1 million a year earlier. Revenue net of royalties eased to US$70.5 million from US$73.7 million, while adjusted EBITDA fell to US$35.0 million from US$48.1 million.
Average production increased to 4,012 barrels of oil equivalent per day from 3,542 boe/d, supported by new wells at the Mateguafa Attic and Alberta Llanos fields. Arrow drilled 14 development wells across Tapir during the year, plus an exploratory well at Mateguafa Attic followed by three development wells, including one horizontal well.
Cash at year-end was US$11.2 million, down from US$18.8 million, and the company said it had no outstanding debt. Capital expenditure rose to US$43.2 million from US$31.1 million, reflecting the faster drilling pace.
Arrow said its 2026 capital programme is fully funded at US$24 million and targets up to nine new wells in the Tapir block. Since year-end, it has drilled four development wells at Mateguafa Attic, including the Mateguafa 12 horizontal well, and is mobilising a rig to drill the Icaco-1 exploration well.
Chief executive Marshall Abbott commented: "Arrow's continued drilling success in 2025 has solidified the production and cashflow base which enables the company to maintain a constructive low risk drilling pace.
"The company sustained increased production, revenue and EBITDA that, along with a robust balance sheet, supports the capital program planned for 2026. Core strategy remains maintaining a disciplined approach to capital allocation. This allows Arrow to grow production while maintaining positive cash flow and a growing cash position."