Arrow exploration books 36% revenue jump as Colombian output soars

Published: 2025-06-04 08:55:05 ET AXL.V

Published on 06/04/2025 at 08:55

Arrow Exploration Corp. recorded a 36% surge in oil and gas revenues during the first quarter, driven by enhanced production across its Colombian hydrocarbon portfolio, energy-pedia reported.

The Calgary-based operator generated $19.5mn in total hydrocarbon revenues net of royalties for the three months ending March 31, compared with $14.4mn in the corresponding period of 2024. Adjusted earnings before interest, taxes, depreciation and amortisation climbed 15% to $11.5mn, whilst corporate production averaged 4,085 barrels of oil equivalent per day, representing a 50% increase from 2,730 boepd for the previous year.

The performance underscores Colombia's growing appeal to international energy investors amid rising global commodity prices. Industry projections suggest Colombian exploration and production investment could increase 8% this year to reach $4.68bn, reflecting strengthening confidence in the nation's hydrocarbon sector.

Arrow's operational momentum accelerated through new drilling activities at its Tapir block in the Llanos basin, where the company completed two development wells (AB 2 and AB 3) at the Alberta Llanos field. Post-quarter developments included the spudding of AB HZ4, marking the firm's inaugural horizontal well at the site, with production expected to commence in June.

The company's strategic positioning received further validation through a two-year crude prepayment agreement with an unnamed integrated energy major, providing access to up to $20mn in prepaid sales during the initial year, declining to $15mn in year two. This arrangement grants the counterparty exclusive marketing rights for Arrow's Colombian crude output whilst delivering attractive financing terms.

Chief executive Marshall Abbott highlighted the significance of recent drilling successes, noting that Alberta Llanos wells have demonstrated horizontal development potential across multiple geological formations including the Ubaque, C7 and Guadalupe zones. However, operational challenges emerged as wells began producing higher water volumes than previously modelled, necessitating production curtailments pending enhanced disposal infrastructure completion.

Arrow is maintaining its $50mn capital expenditure budget for 2025, with $11.4mn deployed during the first quarter. The programme includes securing a second drilling rig for the Rio Cravo Este field, where four development wells are planned.