Proactive Investors - Arrow Exploration Corp (LON:AXLA) has posted second-quarter results revealing revenue and underlying earnings more than doubled from a year earlier as oil production soared.
The company, which operates a portfolio of assets across key Colombian hydrocarbon basins, also generated positive operating cashflows of $4.9 million for the quarter ended June 30, 2023, a $5 million swing from the negative $0.1 million reported in 2Q 2022.
Average corporate production improved by 120% year-over-year to 2,169 barrels of oil equivalent per day (boe/d) and it realized corporate oil operating netbacks of $44.21 per barrel as the increase in production allowed operating costs to be spread over more barrels.
For the quarter, it recorded $10.3 million of total oil and natural gas revenue, net of royalties, from $5 million a year earlier. Underlying earnings (EBITDA) improved to $5.8 million from $2.8 million previously.
It ended the quarter with $10.8 million in cash.
The company also highlighted the successful drilling of the Carrizales Norte-1 (CN-1) exploratory well at the Tapir block over the quarter, which resulted in material additions to production and reserves.
"Our exciting drilling program, including the drilling of three RCE wells and three CN wells, is adding significant production and reserves, as well as establishing a new core area,” Arrow CEO Marshall Abbott commented in a statement.
“The 3D seismic West Tapir project is currently being processed and is expected to further evaluate the 2D recognized fault prospects. The Board remains confident in the Company's opportunity-rich portfolio and the capability of the Arrow team to increase shareholder value.”