2025 Year End and Q4 2025 Results
Arrow Exploration Corp. reported a net income of $1.4 million for the full year 2025, a decrease from $13.1 million in 2024, with total oil and gas revenue of $70.5 million, down from $73.7 million. The company's cash position at year-end 2025 was $11 million, with no outstanding debt, and adjusted EBITDA was $35 million, down from $48 million in 2024. Annual average production increased by 13% to 4,012 boe/d, driven by successful drilling in the Tapir block, and the company has a funded 2026 work program of $24 million targeting up to nine new wells.
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ARROW ANNOUNCES 2025 AUDITED YEAR END AND Q4 2025 RESULTS, FILING OF AUDITED FINANCIAL STATEMENTS, MD&A AND RESERVES REPORT
CALGARY, April 29, 2026 - 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, announces 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."
The Arrow team continues to strive towards growth, operational excellence and increasing shareholder value."
FINANCIAL AND OPERATING HIGHLIGHTS
| (in United States dollars, except as otherwise noted) | Three months ended December 31, 2025 | Year ended December 31, 2025 | Three months ended December 31, 2024 | Year ended December 31, 2024 |
|---|---|---|---|---|
| Total natural gas and crude oil revenues, net of royalties | 16,535,582 | 70,454,619 | 22,873,626 | 73,725,028 |
| Funds flow from operations (1) | 9,245,359 | 32,359,739 | 12,519,464 | 35,619,816 |
| Funds flow from operations (1) per share - | ||||
| Basic($) | 0.03 | 0.11 | 0.04 | 0.12 |
| Diluted ($) | 0.03 | 0.11 | 0.04 | 0.12 |
| Net income (loss) | (3,376,116) | 1,442,598 | 2,081,956 | 13,175,001 |
| Net income (loss) per share - | ||||
| Basic ($) | (0.01) | 0.01 | 0.01 | 0.05 |
| Diluted ($) | (0.01) | 0.00 | 0.01 | 0.05 |
| Adjusted EBITDA (1) | 6,323,833 | 34,968,736 | 13,277,044 | 48,144,181 |
| Weighted average shares outstanding: | ||||
| Basic | 285,864,348 | 285,864,348 | 285,864,348 | 285,864,348 |
| Diluted | 288,112,538 | 291,754,093 | 290,029,866 | 291,226,740 |
| Common shares end of period | 285,864,348 | 285,864,348 | 285,864,348 | 285,864,348 |
| Capital expenditures | 7,752,237 | 43,190,196 | 8,928,725 | 31,121,240 |
| Cash and cash equivalents | 11,208,824 | 11,208,824 | 18,837,784 | 18,837,784 |
| Current assets | 34,496,370 | 34,496,370 | 25,973,196 | 25,973,196 |
| Current liabilities | 32,673,035 | 32,673,035 | 14,167,619 | 14,167,619 |
| Adjusted working capital (1) | 1,823,335 | 1,823,335 | 11,805,577 | 11,805,577 |
| Non-current restricted cash and deposits (2) | 273,257 | 273,257 | 167,545 | 167,545 |
| Total assets | 106,017,624 | 106,017,624 | 81,268,734 | 81,268,734 |
| Operating | ||||
| Natural gas and crude oil production, before royalties | ||||
| Natural gas (Mcf/d) | 1,384 | 1,536 | 1,332 | 1,119 |
| Natural gas liquids (bbl/d) | 5 | 7 | 5 | 5 |
| Crude oil (bbl/d) | 3,739 | 3,749 | 4,511 | 3,351 |
| Total (boe/d) | 3,975 | 4,012 | 4,738 | 3,542 |
| Operating netbacks ($/boe) (1) | ||||
| Natural gas ($/Mcf) | ($0.39) | ($1.14) | ($0.71) | ($0.68) |
| Crude oil ($/bbl) | $33.82 | $36.24 | $42.80 | $50.13 |
| Total ($/boe) | $31.77 | $33.52 | $40.63 | $47.33 |
(1)Non-IFRS measures - see "Non-IFRS Measures" section within this MD&A
(2)Long term restricted cash not included in working capital
2025 Year-End Reserves
Arrow has also filed on SEDAR, the Company's Statement of Reserves Data and Other Oil and Gas Information, Report on Reserves Data by Independent Qualified Reserves Evaluator, and Report of Management and Directors on Oil and Gas Disclosure for the year ended December 31, 2025, as required by section 2.1 of National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities (together, the "Reserve Report").
To recap, the Company's Year-End 2025 Company Working Interest Gross Reserves Highlights include:
- 1,801 Mboe of Proved Developed Producing Reserves ("PDP Reserves")
- 5,415 Mboe of Proved Reserves ("1P Reserves");
- 11,775 Mboe of Proved plus Probable Reserves ("2P Reserves");
- 20,102 Mboe of Proved plus Probable plus Possible Reserves ("3P Reserves")1;
- 1P Reserves estimated net present value before income taxes of US$96 million calculated at a 10% discount rate;
- 2P Reserves estimated net present value before income taxes of US$245 million calculated at a 10% discount rate; and
- 3P Reserves estimated net present value before income taxes of US$473 million calculated at a 10% discount rate.
Arrow refers readers to the Company's press release of March 20, 2026 for additional details, as well as to the Reserve Report filed on SEDAR.
Discussion of Operating Results
The Company increased its annual production in 2025 as a result of new wells at its Mateguafa Attic and Alberta Llanos fields in the Tapir block. These have allowed the Company to continue its healthy level of operating results and EBITDA, despite decreases in crude oil prices and natural gas during 2025. The Company's natural gas production in Canada has fluctuated over the year due to maintenance, shut ins and natural declines.
Average Production by Property
| Average Production Boe/d | YTD 2025 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | YTD 2024 | Q4 2024 |
|---|---|---|---|---|---|---|---|
| Oso Pardo | 114 | 95 | 103 | 131 | 126 | 153 | 154 |
| Rio Cravo Este (Tapir) | 1,043 | 996 | 1,065 | 996 | 1,118 | 1,294 | 1,178 |
| Carrizales Norte (Tapir) | 1,991 | 1,702 | 1,879 | 2,070 | 2,321 | 1,897 | 3,153 |
| Alberta Llanos (Tapir) | 474 | 446 | 943 | 296 | 205 | 7 | 26 |
| Mateguafa (Tapir) | 127 | 500 | - | - | - | - | - |
| Total Colombia | 3,749 | 3,739 | 3,990 | 3,493 | 3,770 | 3,351 | 4,511 |
| Fir, Alberta | 100 | 107 | 85 | 100 | 105 | 81 | 88 |
| Pepper, Alberta | 162 | 129 | 139 | 170 | 210 | 110 | 139 |
| KEHO, Alberta | 1 | - | - | 5 | - | - | - |
| TOTAL (Boe/d) | 4,012 | 3,975 | 4,214 | 3,768 | 4,085 | 3,542 | 4,738 |
The Company's average production for the three months and year ended December 31, 2025 was 3,975 and 4,012 boe/d, respectively, which consisted of crude oil production in Colombia of 3,739 and 3,749 bbl/d, respectively, natural gas production of 1,384 and 1,536 Mcf/d, respectively, and minor amounts of natural gas liquids.
Discussion of Financial Results
During Q4 2025 the Company realized lower oil and gas prices than in Q4 2024, as summarized below.
Three months ended December 31,
| 2025 | 2024 | Change | |
|---|---|---|---|
| Benchmark Prices | |||
| AECO (C$/Mcf) | $2.20 | $1.50 | 47% |
| Brent ($/bbl) | $63.70 | $73.13 | (13%) |
| West Texas Intermediate ($/bbl) | $59.15 | $70.30 | (16%) |
| Realized Prices | |||
| Natural gas, net of transportation ($/Mcf) | $1.52 | $1.21 | 26% |
| Natural gas liquids ($/bbl) | $59.42 | $65.73 | (10%) |
| Crude oil, net of transportation ($/bbl) | $51.12 | $57.04 | (10%) |
| Corporate average, net of transport ($/boe) (1) | $54.08 | $54.73 | (1%) |
(1)Non-IFRS measure
As at December 31, 2025, the Company reviewed its cash-generating units ("CGU") for property and equipment and determined that there were indicators of impairment its Keho CGU and its Oso Pardo CGU and recognized an loss of $7.6 million (see MD&A for further details).
Operating Netbacks
The Company also continued to realize good operating netbacks, as summarized below.
| Three months ended December 31, | Year ended December 31, | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Natural Gas ($/Mcf) | ||||
| Revenue, net of transportation expense | $1.52 | $1.21 | $1.24 | $1.35 |
| Royalties | ($0.06) | ($0.05) | ($0.07) | ($0.02) |
| Operating expenses | ($1.85) | ($1.87) | ($2.30) | ($2.01) |
| Natural Gas operating netback (1) | ($0.39) | ($0.71) | ($1.13) | ($0.68) |
| Crude oil ($/bbl) | ||||
| Revenue, net of transportation expense | $51.12 | $57.04 | $57.26 | $65.40 |
| Royalties | ($5.15) | ($2.61) | ($6.51) | ($6.33) |
| Operating expenses | ($12.15) | ($11.63) | ($14.51) | ($8.94) |
| Crude Oil operating netback (1) | $33.82 | $42.80 | $36.24 | $50.13 |
| Corporate ($/boe) | ||||
| Revenue, net of transportation expense | $48.72 | $54.73 | $54.08 | $62.41 |
| Royalties | ($4.87) | ($2.50) | ($6.11) | ($5.99) |
| Operating expenses | ($12.08) | ($11.60) | ($14.45) | ($9.09) |
| Corporate Operating netback (1) | $31.77 | $40.63 | $33.52 | $47.33 |
(1)Non-IFRS measure
The operating netbacks of the Company were lower in 2025, due to increased operating costs at its Colombia assets as well as lower overall crude oil prices.
During 2025, the Company invested $43 million of capital expenditures, primarily in connection with the drilling of 16 wells in the Tapir Block and one in Canada. This acceleration in operational tempo is expected to continue in 2026, funded by cash on hand and cashflow.
About Arrow Exploration Corp.
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