Arrow Exploration earns $3.08-million (U.S.) in Q3

Executive Summary

• Arrow Exploration Corp. released its Q3 2025 interim financial results, reporting a net income of $4.8 million year-to-date and average corporate production of 4,214 barrels of oil equivalent per day (boepd).
• The company generated $25 million in operating cash flows year-to-date and ended Q3 with a cash position of $6.3 million, which increased to $8.2 million by November 1, 2025, following capital expenditures on infrastructure and drilling.
• Operational highlights include the drilling of development wells in the Carrizales Norte field, exploration activity in Mateguafa Oeste, and the spudding of the Mateguafa-7 horizontal well, with expectations for production from M-HZ7 by mid-December 2025.

Key Details

• Financial Performance:
  • Net year-to-date income: $4.8 million.
  • Total oil and natural gas revenue (net of royalties): $18.5 million.
  • Realized corporate oil operating netbacks: $38.21 per barrel.
  • Year-to-date operating cash flows: $25 million.
  • Cash position at end of Q3 2025: $6.3 million.
  • Cash balance as of Nov. 1, 2025: $8.2 million.
  • Q3 2025 capital expenditure: $9 million.
• Production Metrics:
  • Average corporate production (Q3 2025): 4,214 boepd (vs. 4,124 boepd in Q3 2024).
  • Crude oil production (Colombia): 3,990 barrels per day.
  • Natural gas production: 1,306,000 cubic feet per day.
  • Production increase of 12% compared to Q2 2025, driven by wells in the Alberta Llanos and Rio Cravo Este fields.
• Drilling and Operations:
  • Drilled two additional development wells in the Carrizales Norte (CN) field (Tapir block).
  • Drilled an exploration well in Mateguafa Oeste (MO).
  • Post-period-end: Drilled Mateguafa-5 (M-5) and Mateguafa-6 (M-6) wells; spudded Mateguafa-7 horizontal well (M-HZ7).
  • M-HZ7 expected to be put on production in mid-December 2025.
  • Planned activities: Drill another well at Mateguafa Attic field; initiate civil works for first exploration well at Icaco prospect in Q1 2026.
• Regulatory and Strategic Updates:
  • Discussions ongoing with authorities regarding the Tapir block extension; Arrow believes all requirements have been met.
  • Discussions ongoing with regulatory bodies on terminating COR-39 block licence obligations (suspended since Nov 2017).
  • Reverted to operating one rig after intensive capital outlay period (second rig, roads, drill pads, preliminary Icaco works).

Notable Quotes

• "The third quarter of 2025 has been very busy for Arrow. We completed two development wells in Carrizales Norte and drilled the Mateguafa Oeste exploration well as well as setting up infrastructure for the discovery at Mateguafa Attic and the upcoming exploration well at Icaco." — Marshall Abbott, CEO
• "The Mateguafa Attic discovery could become a major production platform and have a material impact on the company, and the Icaco prospect is another near-term catalyst that we expect will be drilled in the first quarter of 2026." — Marshall Abbott, CEO
• "Arrow has invested heavily into roads, pads and water infrastructure in both Q2 and Q3 and the results can be seen with a significant decrease in the company's operating cost in Q3 when compared to Q2 2025. This investment will continue to pay back over the life of the Tapir pads." — Marshall Abbott, CEO