Arrow Exploration Corp. (AIM/TSXV: AXL) reported a substantial increase in reserves after successful drilling in Colombia and the acquisition of the Thorsby asset in Canada, while group production rose above 6,000 barrels of oil equivalent per day.
Mid-year proved and probable (2P) reserves increased 82% to 21.4 million boe, carrying a before-tax NPV10 valuation of US$410 million, equivalent to around US$1.43 per share.
Proved reserves more than doubled to 11.4 million boe, with a before-tax NPV10 of US$193 million, while 3P reserves increased 71% to 34.4 million boe, valued at US$731 million on the same basis.
The increase was driven principally by the Icaco discovery in Colombia, development of the Mateguafa field and the Thorsby acquisition. Excluding Thorsby, Arrow still reported reserve replacement ratios of 1.3 times for 1P, 2.1 times for 2P and 3.0 times for 3P, indicating that organic additions exceeded production.
At Icaco, six wells had been drilled by the August 15 reserve-report date, with three producing from the Carbonera formation and two from the Ubaque. Icaco-7 has now been drilled and is expected to enter production shortly, with Icaco-8, 9 and 10 also expected to contribute to further production growth.
Arrow plans another five development wells at Icaco, with a further five wells potentially following depending on results.
A key investor consideration is the Tapir licence extension. The 1P reserve case assumes the licence expires in February 2028, while the higher 2P and 3P reserve figures assume one or both five-year extensions are granted. Management said discussions with regulators remain positive, but the extensions have not yet been formally awarded.
Chief executive Marshall Abbott said the results demonstrate the value created through both drilling and acquisitions, with the remainder of 2026 expected to remain weighted towards development drilling at Icaco alongside further exploration across the Tapir Block.
