Arrow Exploration, the high-growth operator with a portfolio of assets across key Colombian hydrocarbon basins, has announced the filing of its Annual Audited Financial Statements and Management's Discussion and Analysis ('MD&A') for the quarter and year ended December 31, 2025 and the filing of its 2025 year-end reserves report, which are available on SEDAR (www.sedar.com) and will also shortly be available on Arrow's website at www.arrowexploration.ca.
Full Year 2025 Highlights:
· Net income of $1.4 million inclusive of an impairment loss of $7.6 million (FY: 2024: $13.1 million).
· Total oil and gas revenue of $70.5 million, net of royalties (2024: $73.7 million).
· Cash position of $11 million at the end of 2025 (2024: $18 million). No outstanding debt.
· Adjusted EBITDA of $35 million (FY 2024: $48 million), with Q4 2025 EBITDA of $6.3 million (Q4 2024: $13.3 million).
· Funds flow from operations of $32 million (FY 2024: $36 million) with Q4 2025 funds flow from operations of $9 million (Q4 2024: $12 million).
· 13% increase in annual average production to 4,012 boe/d (2024: 3,542 boe/d).
· Successfully drilled 14 development wells at its different fields in the Tapir block, including Rio Cravo Este (RCE), Carrizales Norte(CN) and Alberta Llanos (AB), which contributed to maintain Company production levels.
· Drilled a successful exploratory well on the Mateguafa Attic (M) field in the Tapir block, followed by drilling of three development wells, including one horizontal well (M-HZ7). One well was drilled in Canada.
· All operations delivered safely, with no accidents or environmental incidents.
Post Period End Highlights:
· So far in 2026, the Company has drilled four development wells on the Mateguafa Attic field in the Tapir Block, including the Mateguafa 12 (M-HZ12) horizontal well.
· Mateguafa HZ12 (M-HZ12) is on production and cleaning up.
· Currently mobilizing the drilling rig to the Icaco pad to start drilling the Icaco-1 exploration well.
· Received authorization from the Agencia Nacional de Hidrocarburos (ANH) to terminate the COR-39 exploration and production contract, which included release of a $12 million commitment.
Outlook
· Arrow has a fully funded 2026 work program totaling $24 million targeting up to nine new wells in the Tapir block.
· Continue discussions with its partner and authorities on the contract extension for the Tapir block. To date the dialog has been very constructive. Arrow believes that all conditions required for the extension to be granted have been met and management remains very confident that the extension will be granted.
· 2026 capital operations to be funded by cash flow and cash on hand.
Marshall Abbott, CEO of Arrow Exploration Corp., 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. Today's strong results show clear success in our operating strategy. Arrow is confident in continuing to successfully pursue the scope and repeatability that the Colombian Tapir Block offers. The Company focus remains on growing production and cash flow that will strengthen valuation and afford greater optionality in pursuing additional opportunities.'
'Arrow continues to have a strong balance sheet with no debt. The funds for the 2026 capital operations are expected to come from operating cash flow and cash reserves.'
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Source: Arrow Exploration
