Arrow Exploration (AIM:AXL), the Colombia and Canada-focused oil and gas producer, said proved plus probable (2P) reserves rose 82% to 21.4 million barrels of oil equivalent (MMboe) against year-end 2025.
The increase, detailed in a mid-year 2026 reserves report prepared by Boury Global Energy Consultants, values those 2P reserves at $410 million on a before-tax net present value basis discounted at 10%.
Proved developed producing (PDP) reserves climbed 62% to 2.9 MMboe, worth $59.3 million, while proved (1P) reserves more than doubled, up 110% to 11.4 MMboe.
Proved plus probable plus possible (3P) reserves increased 71% to 34.4 MMboe, valued at $731 million.
The gains stem principally from the Icaco discovery in Colombia's Llanos Basin, made in the second quarter, and the acquisition of the Thorsby asset in Alberta.
Six wells have been drilled at Icaco to date, three producing from the Carbonera formation and two from the Ubaque formation, with a further five wells planned and a contingent five-well program to follow.
Corporate production now exceeds 6,000 barrels of oil equivalent per day, a figure Arrow expects to grow as the Icaco-7 through Icaco-10 wells come online.
"Arrow has been successful in the M&A front, adding reserves accretively", said chief executive Marshall Abbott, calling it a key part of the company's strategy to deploy its balance sheet.
The 1P reserves assume the Tapir block licence expires with its contract in February 2028, while 2P and 3P figures assume that two five-year extension options embedded in the contract are granted.
News Intelligence what this means for the company
Arrow's proved-plus-probable reserves jumped 82% to 21.4 MMboe at mid-year 2026, driven by the Icaco discovery in Colombia and the Thorsby acquisition in Alberta, with those 2P reserves valued at $410 million on a 10% NPV basis. The company is now producing over 6,000 boe/d and has drilled six wells at Icaco with five more planned, positioning it to grow output as new wells come online—a tangible step forward from the $23.5m Q1 revenue and 4,715 boe/d production it reported earlier this year.
The reserve growth and production ramp validate Arrow's M&A and drilling strategy at a time when it acquired Thorsby for C$12.15m and has been executing a fully funded work programme. However, the 1P reserve base assumes the Tapir block licence expires in February 2028 unless two five-year extensions are granted—a material contingency that underpins the higher 2P and 3P figures.
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