Arrow Exploration (AIM:AXL), the Colombia and Canada-focused oil and gas producer, in its second-quarter report, reported revenue of $34.2 million, up 116% from $15.9 million in the same period last year.
The company swung to net income of $10.4 million, compared with a loss of $0.9 million in the second quarter of 2025. Earnings (adjusted EBITDA) rose 300% to $25.1 million, while average production climbed 30% to 4,902 barrels of oil equivalent per day (boe/d), driven by new volumes from the Mateguafa Attic and Icaco fields in Colombia's Tapir block.
Arrow ended the quarter with $28.5 million in cash and no debt, alongside operating cashflows of $15.7 million and a realized corporate operating netback of $63.42 per boe.
"The second quarter of 2026 has been very productive for Arrow, our best quarter yet", said chief executive Marshall Abbott, adding that the Icaco discovery "has become a major production platform with a material impact on the Company".
During the quarter, Arrow drilled a successful exploration well and two development wells at Icaco, plus a horizontal well at Mateguafa Attic. Since period end, it has drilled two further Icaco development wells, spudded a third, and completed the acquisition of the Thorsby field in Alberta, Canada.
Abbott said the focus for the rest of 2026 is additional Icaco drilling and well recompletions across its most productive fields.
News Intelligence what this means for the company
Arrow Exploration swung to profitability in Q2 2026 on the back of a 116% revenue jump to $34.2 million, driven by production gains from its Icaco discovery in Colombia's Tapir block. The company ended the quarter with $28.5 million cash, no debt, and operating cash flow of $15.7 million—enough to fund its stated $24 million 2026 work programme entirely from internal generation, and the Icaco field is now described by management as a 'major production platform' warranting continued drilling focus through year-end.
The Icaco discovery has moved from exploration success to material production contributor in under a year, validating Arrow's Colombia strategy and eliminating near-term funding risk. The company's ability to self-fund its 2026 programme while maintaining a net cash position materially improves its financial flexibility, though as a 35-person small-cap E&P, execution risk on drilling and commodity price exposure remain structural constraints.
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