Q3 2025 Interim Results
Arrow Exploration Corp. reported Q3 2025 results with average corporate production of 4,214 boe/d, generating $18.5 million in oil and natural gas revenue net of royalties. The company achieved corporate oil operating netbacks of $38.21/bbl and year-to-date operating cashflows of $25 million, ending the quarter with a cash position of $6.3 million. Significant capital expenditures were made for drilling development and exploration wells, with plans for further drilling in the Mateguafa Attic and Icaco prospects in early 2026. The company is also in discussions with authorities regarding the Tapir block extension and the termination of COR-39 Block license obligations.
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CALGARY, November 27, 2025 - Arrow Exploration Corp. (AIM: AXL; TSXV: AXL) ("Arrow" or the "Company"), the high-growth operator with a portfolio of assets across key Colombian hydrocarbon basins, is pleased to announce the filing of its Interim Condensed (unaudited) Consolidated Financial Statements and Management's Discussion and Analysis ("MD&A") for the three and nine months ended September 30, 2025, which are available on SEDAR (www.sedar.com) and will also be available shortly on Arrow's website at www.arrowexploration.ca.
Q3 2025 Highlights:
- Average corporate production of 4,214 boe/d (Q3 2024: 4,124 boe/d).
- Recorded $18.5 million of total oil and natural gas revenue, net of royalties.
- Realized corporate oil operating netbacks(1) of $38.21/bbl.
- Cash position of $6.3 million at the end of Q3 2025.
- YTD generated operating cashflows of $25 million.
- Drilled two additional development wells in the Carrizales Norte (CN) field in the Tapir block, and an exploration well in Mateguafa Oeste (MO).
- Net YTD income of $4.8 million.
(1)Non-IFRS measures - see "Non-IFRS Measures" section within the MD&A
Post Period End Highlights:
- Drilled the Mateguafa Attic wells: Mateguafa-5 (M-5) and Mateguafa-6 (M-6), and spud the Mateguafa-7 Horizontal well (M-HZ7)
Cash Balance:
On November 1, 2025, the Company's cash balance was US$8.2 million. This reflects an intensive period of capital outlay as the Company contracted a second rig during Q2 and Q3 and built access roads and drill pads at Carrizales Norte, Mataguafa Oeste, Mataguafa Attic and preliminary works at the highly prospective Icaco project. The Company has now reverted to operating one rig, and the site preparation and seismic costs are largely met, this provides a foundation for future development and exploration activities., Both production and net backs remain robust at current market prices.
Tapir Extension and COR-39 Block
The Company is engaged in continuing discussions with authorities on the Tapir block extension. Arrow considers that all requirements for the extension have been met. Furthermore, the Company is in discussions with regulatory bodies on the termination of COR-39 Block license obligations (where activity has been suspended since November 2017). Discussions with authorities are going well and Arrow will keep the market updated in future releases.
Upcoming Drilling
The Company has spud the M-HZ7 well, which is expected to be put on production in mid-December 2025. Thereafter, the Company expects to drill another well at its Mateguafa Attic field and initiate civil works in preparation to drill its first exploration well in the Icaco prospect in Q1 2026.
Marshall Abbott, CEO of Arrow Exploration Corp., commented:
"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. 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."
"The Company continues to work with regulatory authorities on the extension of the Tapir block. The Company considers it has met all of the requirements for an extension and discussions with regulatory officials continue to progress."
"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 payback over the life of the Tapir pads."
"The focus for the remainder of 2025 will be to drill low risk wells at the Mateguafa Attic pad in the Tapir block and to get all preliminary works in place to drill our first exploratory well at the Icaco prospect."
FINANCIAL AND OPERATING HIGHLIGHTS
| (in United States dollars, except as otherwise noted) | Three months ended September 30, 2025 | Nine months ended September 30, 2025 | Three months ended September 30, 2024 |
|---|---|---|---|
| Total natural gas and crude oil revenues, net of royalties | 18,543,974 | 53,919,037 | 21,300,115 |
| Funds flow from operations | 9,374,301 | 23,114,380 | 9,233,972 |
| Funds flow from operations per share - | |||
| Basic($) | 0.02 | 0.07 | 0.03 |
| Diluted ($) | 0.02 | 0.07 | 0.03 |
| Net income | 3,089,684 | 4,818,714 | 6,668,493 |
| Net income per share - | |||
| Basic ($) | 0.01 | 0.02 | 0.02 |
| Diluted ($) | 0.01 | 0.02 | 0.02 |
| Adjusted EBITDA (1) | 10,843,377 | 28,644,904 | 15,961,900 |
| Weighted average shares outstanding - | |||
| Basic ($) | 285,864,348 | 285,864,348 | 285,864,348 |
| Diluted ($) | 289,719,564 | 292,991,907 | 288,921,950 |
| Common shares end of period | 285,864,348 | 285,864,348 | 285,864,348 |
| Capital expenditures | 9,287,571 | 35,437,959 | 6,945,779 |
| Cash and cash equivalents | 6,370,539 | 6,370,539 | 16,536,801 |
| Current Assets | 17,259,451 | 17,259,451 | 23,230,243 |
| Current liabilities | 17,085,588 | 17,085,588 | 13,608,118 |
| Adjusted working capital (1) | 173,863 | 173,863 | 9,622,125 |
| Long-term portion of restricted cash | 152,617 | 152,617 | 176,094 |
| Total assets | 93,684,265 | 93,684,265 | 73,535,397 |
| Operating | |||
| Natural gas and crude oil production, before royalties | |||
| Natural gas (Mcf/d) | 1,306 | 1,579 | 461 |
| Natural gas liquids (bbl/d) | 6 | 8 | 5 |
| Crude oil (bbl/d) | 3,990 | 3,752 | 4,042 |
| Total (boe/d) | 4,214 | 4,023 | 4,124 |
| Operating netbacks ($/boe) | |||
| Natural gas ($/Mcf) | ($1.76) | ($1.36) | ($1.48) |
| Crude oil ($/bbl) | $38.21 | $37.08 | $52.00 |
| Total ($/boe) | $35.72 | $34.13 | $50.76 |
Discussion of Operating Results
During Q3 2025, the Company's production has increased, compared to the previous two quarters, due to wells drilled in the Alberta Llanos and Rio Cravo Este fields coming on production. Production growth is expected to continue as the Company executes on the 2025 budget. During the quarter, the Company maintained good operating results and healthy EBITDA.
Average Production by Property
| Average Production Boe/d | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|---|---|---|
| Oso Pardo | 103 | 131 | 126 | 154 | 180 | 113 | 166 |
| Ombu (Capella) | - | - | - | - | - | - | - |
| Rio Cravo Este (Tapir) | 1,065 | 996 | 1,118 | 1,178 | 1,078 | 1,283 | 1,644 |
| Carrizales Norte (Tapir) | 1,879 | 2,070 | 2,321 | 3,153 | 2,784 | 991 | 622 |
| Alberta Llanos | 943 | 296 | 205 | 26 | - | - | - |
| Total Colombia | 3,990 | 3,493 | 3,770 | 4,511 | 4,042 | 2,387 | 2,432 |
| Fir, Alberta | 85 | 100 | 105 | 88 | 82 | 77 | 78 |
| Pepper, Alberta | 139 | 170 | 210 | 139 | - | 82 | 220 |
| KEHO, Alberta | - | 5 | - | - | - | - | - |
| TOTAL (Boe/d) | 4,214 | 3,768 | 4,085 | 4,738 | 4,124 | 2,546 | 2,730 |
The Company's average production for the three months ended September 30, 2025 was 4,214 boe/d which consisted of crude oil production in Colombia of 3,990 bbl/d, natural gas production of 1,306 Mcf/d, and minor amounts of natural gas liquids. The Company's Q3 2025 production was marginally higher than its Q3 2024 production and 12% higher than Q2 2025 due to increase in production in the Alberta Llanos field.
Discussion of Financial Results
During Q3 2025,the Company has experienced a reduction in realized crude oil and gas prices compared with the same period in 2024, as summarized below:
Three months ended September 30
| 2025 | 2024 | Change | |
|---|---|---|---|
| Benchmark Prices | |||
| AECO (C$/Mcf) | $0.64 | $0.70 | 146% |
| Brent ($/bbl) | $69.80 | $72.87 | (4%) |
| West Texas Intermediate ($/bbl) | $64.95 | $75.15 | (15%) |
| Realized Prices | |||
| Natural gas, net of transportation ($/Mcf) | $0.50 | $0.56 | (72%) |
| Natural gas liquids ($/bbl) | $45.69 | $61.24 | (19%) |
| Crude oil, net of transportation ($/bbl) | $56.67 | $65.35 | (13%) |
| Corporate average, net of transport ($/boe) (1) | $53.90 | $64.04 | (6%) |
(1)Non-IFRS measure
Operating Netbacks
The Company also continued to realize good oil operating netbacks, as summarized below:
Three months ended September 30
| 2025 | 2024 | |
|---|---|---|
| Natural Gas ($/Mcf) | ||
| Revenue, net of transportation expense | $0.50 | $0.56 |
| Royalties | ($0.05) | ($0.09) |
| Operating expenses | ($2.22) | ($1.95) |
| Natural Gas operating netback (1) | ($1.76) | ($1.48) |
| Crude oil ($/bbl) | ||
| Revenue, net of transportation expense | $56.67 | $65.35 |
| Royalties | ($6.57) | ($7.44) |
| Operating expenses | ($11.88) | ($5.91) |
| Crude Oil operating netback (1) | $38.21 | $52.00 |
| Corporate ($/boe) | ||
| Revenue, net of transportation expense | $53.90 | $64.04 |
| Royalties | ($6.24) | ($7.28) |
| Operating expenses | ($11.94) | ($6.00) |
| Corporate Operating netback (1) | $35.72 | $50.76 |
(1)Non-IFRS measure
The operating netbacks of the Company have been affected in 2025 due to increased water production from its Colombian assets and decreased crude oil and natural gas prices. During Q3 2025, the Company incurred $9 million of capital expenditure, primarily in connection with the drilling of additional development wells in the Tapir block. This tempo is expected to continue during the remainder of 2025, funded by cash on hand and cashflow.
About Arrow Exploration Corp.
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