Colombian Oil Producer Jumps as Q2 Revenue More Than Doubles

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Thursday, August 27, 2026

Strategic development pads only trigger market re-ratings when new production translates directly into cash flow rather than discovery headlines. In junior oil and gas development, drilling multi-formation targets from centralized pads allows operators to expand daily boe output rapidly, driving revenue growth and operating netbacks while keeping balance sheets debt-free.

Arrow Exploration Corp. (TSX-Venture: AXL) (OTC: CSTPF) advanced after reporting second-quarter results for the period ended June 30, 2026.

Oil and natural gas revenue (net of royalties) surged 116.0% year-over-year to US$34.2M, driven by a 30.0% increase in average production to 4,902 boe/d (including 4,801 bbl/d of crude oil). Corporate operating netbacks remained strong at US$63.42/boe, pushing Adjusted EBITDA up to US$25.1M compared to US$6.3M in Q2 2025. Net income reached US$10.4M, reversing a US$0.9M net loss from the prior-year period. Arrow closed the period with US$28.5M in cash and zero debt.

Production growth was anchored by new development wells at the Mateguafa Attic and the newly opened Icaco field on the Tapir block in Colombia, offsetting natural field declines elsewhere. During Q2, Arrow completed one successful exploration well and two development wells at Icaco, alongside a horizontal development well at Mateguafa Attic. Subsequent to quarter-end, the company drilled two additional Icaco development wells, spudded a third, recompleted two Carrizales Norte wells, and closed the acquisition of the Thorsby field in Alberta. 

Next primary catalysts include ongoing development drilling at the Icaco pad through the remainder of 2026, further recompletions across existing Tapir fields, and updates regarding the Tapir block license extension application.

Shares of AXL rose 6.0% to C$0.53 on the TSX Venture Exchange, while OTC shares of CSTPF gained 9.3% to US$0.39.

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