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(Sharecast News) - Arrow Exploration reported a strong operational and financial performance for the first quarter on Friday, underpinned by increased production and higher revenues across its Colombian assets.
Total oil and gas revenue, net of royalties, rose 36% year-on-year to $19.5m, with adjusted EBITDA up 15% to $11.5m.
Net income for the period was $2.7m.
Production averaged 4,085 barrels of oil equivalent per day in the first quarter, up from 2,730 daily equivalent barrels a year earlier, with oil operating netbacks of $38.66 per barrel.
Operating cash flow reached $14.4m, while Arrow ended the quarter with a cash balance of $24.9m.
The company said it drilled two new development wells in the Alberta Llanos field and acquired 90 square kilometres of new seismic data on the Tapir Block.
Post-quarter, Arrow spudded its first horizontal well at Alberta Llanos and brought two new wells at Carrizales Norte into production.
It also secured a second rig to begin development drilling at Rio Cravo Este in early June, followed by further work at Carrizales Norte.
Arrow said it had entered into a two-year prepayment agreement with a major integrated energy firm, providing access to up to $20m in prepaid crude sales in the first year, decreasing to $15m in year two.
The deal granted the counterparty exclusive marketing rights to Arrow's Colombian production.
It said it expected its $50m capital programme to deliver materially higher production by year-end.
"The first quarter of 2025 has been exciting for Arrow," said chief executive officer Marshall Abbott.
"The two wells, AB 2 and AB 3 at Alberta Llanos, have highlighted the potential for horizontal development in the Ubaque as well as follow up zones in the C7 and Guadalupe.
"Both Brent and AECO prices have been impacted by the volatility experienced in early 2025, but the company still has very healthy netbacks from its Colombian oil production."
Abbott said Arrow's 2025 capital budget was expected to be paid for by available cash and cash flow from operations.
"Our focus for the remainder of 2025 will be to grow production, continue development at the Carrizales Norte, Rio Cravo Este and Alberta Llanos fields and explore low risk new prospects in the Tapir block."
At 1137 BST, shares in Arrow Exploration Corporation were down 1.47% at 16.75p.
Reporting by Josh White for Sharecast.com.
