Arrow Exploration announces latest new well data as output continues to grow

Arrow Exploration (TSX-V:AXL, AIM:AXL) announced the successful commissioning of four new wells in its 50%-owned Tapir Block in Colombia during H2 2025, collectively adding over 4,800 barrels of oil equivalent per day to its production. This expansion, highlighted by strong output from wells like Carrizales Norte HZ13 yielding 1,002 bopd gross, reinforces the field's development potential and the company's operational growth trajectory. Furthermore, Arrow has increased water disposal capacity, a strategic move to support future production scaling.

Analysis

Arrow Exploration has reported a significant operational success with the commissioning of four new wells in its 50%-owned Tapir Block in Colombia, collectively adding over 4,800 barrels of oil equivalent per day (boepd) in gross production. This update materially boosts the company's output profile for the second half of 2025. The performance of the horizontal wells, particularly Carrizales Norte HZ13 yielding 1,002 bopd gross, substantiates the CEO's assertion that the field holds considerable future development potential and de-risks subsequent drilling campaigns. The positive result from the AB-3 well recompletion at 840 bopd gross further demonstrates effective reservoir management and operational execution. Critically, the company has proactively expanded its water disposal capacity, a necessary infrastructure investment that underpins the sustainability of this new production and facilitates further growth, signaling a clear strategy focused on both immediate production increases and unlocking future reserves.

Key Decisions for Investors

• Investors should view this operational update as a significant de-risking event for the Carrizales Norte field, justifying a more constructive outlook on the company's production growth trajectory and near-term revenue potential.
• Consider the direct positive impact of approximately 2,400 net boepd on Arrow's revenue and free cash flow generation, which could accelerate future capital programs or enhance shareholder returns.
• Monitor upcoming operational reports for the sustained production rates from these new wells and for any announcements regarding the trial of new completion techniques in the Ubaque formation, which could serve as the next valuation catalyst.