Arrow Exploration (AIM:AXL), the Colombian and Canadian oil and gas operator, said current total corporate production has surpassed 6,000 barrels of oil equivalent per day (boe/d), a record for the company.
The milestone reflects recent drilling successes, workover results, and contribution from the newly acquired Thorsby field in Alberta, Canada.
The Icaco-6 well (IC-6), drilled at the Icaco field on the Tapir Block in Colombia's Llanos Basin where Arrow holds a 50% interest, was spud on 19 August and reached total depth on 24 August.
The well encountered a fault and lost drilling mud circulation before reaching target depth, prompting management to case it early and complete it as a water disposal well instead.
Log analysis still showed 6.5 feet of net pay in the Carbonera C7 formation and 5 feet in the Guadalupe Formation, though the well was terminated before reaching the deeper Gacheta and Ubaque targets.
Arrow is building five additional cellars on the Icaco pad, taking the total to fifteen, to continue drilling C7, Gacheta and Ubaque wells, with the vertical IC-7 well already spud on 1 September.
As of 1 September, and after an $8.9 million payment for the Thorsby acquisition, Arrow's estimated cash balance stood at $21.8 million.
"Although the IC-6 well was terminated sooner than expected due to encountering a fault, we were able to quickly pivot and complete the well as a water injector in a cost effective manner," chief executive Marshall Abbott said, adding that the best Icaco producers have paid out in under two months.
Arrow also said it is in discussions with Colombian regulators over an extension to the Tapir licence.
News Intelligence what this means for the company
Arrow has reached 6,000 boe/d production for the first time, driven by recent drilling successes, workover results, and the newly acquired Thorsby field in Alberta. The IC-6 well at Icaco encountered a fault and was repurposed as a water disposal well, but the company is pressing ahead with five additional cellars on the pad to drill deeper targets; IC-7 has already spud. The milestone matters because it validates Arrow's dual-basin strategy and shows the Icaco field—where horizontal wells have hit 1,270 BOPD—is scaling production faster than early-stage E&P typically does.
Production growth to 6,000 boe/d is material for a 35-person E&P, but cash burn is accelerating: Arrow spent $8.9 million on Thorsby and now holds $21.8 million (down from $26.7 million in early June), leaving roughly nine months of runway at current capex pace if the 2026 work programme holds. IC-6's fault is a setback, but the pivot to water injection and the immediate spud of IC-7 suggest management is executing the contingency plan; the real test is whether the deeper Gacheta and Ubaque targets at Icaco deliver the volumes needed to sustain growth and extend cash life.
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