Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF), the Colombia-focused producer, swung to a net income in the year to end-December 2021, compared to a loss in full-year 2020 as the firm realized strong oil and gas prices and lifted output.
Revealing its financial and operating results for the fourth quarter and full year to December 31, 2021, the company also reported its year-end reserves.
Net income for the 12 months came in at US$5.7 million compared to a loss of US$32.2 million in 2020 on total gas and oil revenues of US$6.5 million (2020: US$5.3 million).
Total average production for the year was 468 barrels of oil per day (boe/d), up from 461 boe/d in 2020.
READ: Arrow Exploration hits multiple pay zones in Colombia well
Notably, in the final three months of the year, average corporate production was 712 boe/d, an increase of 137 boe/d compared to the third quarter of 2021, which saw average corporate production of 575 boe/d - up 24%.
Arrow said this was "largely attributable" to the group's Canadian operation following the tie-in of the West Pepper well in Alberta, which was brought into production in December, 2021.
Average prices realized by the oiler were US$47.37 per barrel of oil equivalent in 2021 compared to US$33.14 in 2020, and in the fourth quarter, US$44.15 per boe, up from US$29.47 in Q4, 2020.
Arrow noted it had experienced a decrease in operating netbacks during the fourth quarter compared to Q3, 2021, decreasing to US$27.35/boe from US$30.73/boe, which it said was attributable to lower realized prices for crude sales associated with its share in its Ombu/Capella block in Q4, 2021.
In October, Arrow raised around £8.8 million (C$15 million) via a placing and subscription for new shares with new investors Canacol Energy Ltd (TSX:CNE) and executive management and published an AIM admission document for trading on the AIM Market of the London Stock Exchange, the firm highlighted.
Arrow's year-end 2021 gross reserves highlights include 3,048 Mboe of proved reserves (1P reserves), 7,421 Mboe of proved plus probable reserves (2P reserves), and 11,541 Mboe of proved plus probable plus possible reserves (3P reserves).
Arrow Exploration operates in Colombia via a branch of its 100% owned subsidiary Carrao Energy S.A., which has a portfolio of premier Colombian oil assets that are under-exploited, under-explored and offer high potential growth.
Contact the author at giles@proactiveinvestors.com