REG - Arrow Exploration - Arrow Announces Appraisal Well M-12 Results

Arrow ExplorationAnnouncement

08/05/2026 07:00

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RNS Number : 5082D  Arrow Exploration Corp.  08 May 2026

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ARROW ANNOUNCES APPRAISAL WELL M-12 RESULTS

M-HZ12 successfully drilled and on production

First Icaco exploration well spud

CALGARY, May 8, 2026 - Arrow Exploration Corp. (AIM: AXL; TSXV: AXL) ("Arrow"
or the "Company"), the high-growth operator with a portfolio of assets across
key Colombian hydrocarbon basins, is pleased to provide an update on
operational activity at the Mateguafa Attic field on the Tapir Block in the
Llanos Basin of Colombia where Arrow holds a 50 percent beneficial interest.

Mateguafa H-Z12 Well

The Mateguafa HZ12 well (M-HZ12) was spud March 27, 2026, and reached target
depth on April 7, 2026.  The M-HZ12 well was drilled, on time and under
budget, to a total measured depth of 13,824 feet (8,455 feet true vertical
depth) and encountered multiple hydrocarbon-bearing intervals.

Arrow put M-HZ12 on production on April 16, 2026 in the Carbonera C9 formation
("C9"), which has approximately 30 feet of net oil pay (true vertical depth)
at this location. The pay zone is a clean sandstone exhibiting an average
porosity of 24% with high resistivities. An electric submersible pump (ESP)
has been inserted in the well after perforating.  During the clean-up period
the well reached a maximum rate of  668 BOPD gross (334 BOPD net) before
settling into the current stable production rate.

The M-HZ12 well also encountered approximately 15 feet of net oil pay (true
vertical depth) in the Carbonera C7 formation ("C7").

The well is currently on production at 33/128 choke, 36 Hz pump frequency
resulting in a heavily restricted rate of approximately 564 BOPD gross (282
BOPD net). The oil quality is 32° API and there is a 60% water cut
(completion fluid and formation water).

The testing results indicate that the well is capable of higher rates, and the
ultimate flow rate will be determined over the coming weeks of production.

Initial production results are not necessarily indicative of long-term
performance or ultimate recovery.

Mateguafa Pad

The Mateguafa Pad currently has the following wells on production:

 

 Well    Production Gross BOPD  Production Net BOPD  Water Cut  Formation
 M-HZ12  564                    282                  60%        C9
 M-11    460                    230                  50%        C7
 M-10    336                    168                  67%        C7
 M-HZ9   948                    474                  64%        C9
 M-HZ7   1,850                  925                  49%        C9
 M-6     236                    118                  56%        C7
 M-5     366                    183                  87%        C9

 

Forward Drilling Plans

The rig is currently at the Icaco pad where the Icaco 1 (A-1) well, an
exploration well, was spud on May 5, 2026.  Dependent upon the success of the
A-1 well, Arrow plans a development program at the Icaco location.

The Company is also in the process of contracting a workover rig for a number
of recompletions on the Tapir block.  Arrow expects the workovers to begin
late in the second quarter.

Production

Including the restricted production from the M-HZ12 well, total gross
corporate production is approximately 5,000 boe/d.  Currently the CN-HZ12
well is offline waiting on a workover.  The well was producing approximately
330 BOPD gross (165 BOPD net) when it was shut in.  Arrow has also shut in
the Pepper gas field due to low natural gas prices in Alberta which was
producing approximately 130 boe/d when it was shut in.

Prices

During March and April 2026, Arrow's oil field realized prices averaged $87
US/barrel and $90 US/barrel respectively, which reflects the increase in Brent
oil prices caused by the unrest in the Middle East.  Brent averaged $103.13
and $103.91 during the March and April 2026 periods.

Field prices reflect the deduction of the Vasconia differential and logistics
fees (mostly transportation and quality differential) and are the prices Arrow
receives for production.

Cash Balance

On May 1, 2026, the Company's cash balance was US$24.2 million.  The Company
continues to have no debt.

 

Tapir Extension

Arrow and its partner in the Tapir block remain in discussions with regulatory
employees on the extension of the Tapir block.  To date the dialog has been
very constructive and we are working towards an agreement.  Management
remains very confident that the extension will be granted.  Once the
Colombian Federal election has been decided Arrow expects the focus of the
regulatory bodies to return to the  extension application process.  The
Company will continue to update the market on developments as they occur.

 

Marshall Abbott, CEO of Arrow commented:

"The continued success of the Mateguafa wells reinforces the materiality of
the Mateguafa field to Arrow.  Future work at Mateguafa will include both
horizontal and vertical development wells, workovers and co-mingling."

"The Icaco prospect has been developed by the Arrow team using both 2D seismic
and the more recently shot 3D seismic program.   The Icaco prospect
demonstrates the same technical scope and repeatability of the play type that
has proven to be highly successful for Arrow in the Tapir Block in the Llanos
Basin of Colombia. Management looks forward to updating shareholders on the
progress at Icaco in the near term."

"Arrow aims to maintain a strong balance sheet with a healthy cash position,
no debt and significant cash flow. This provides a stable platform with
optionality to pursue both organic growth and  accretive acquisitions."

 

 

 

For further Information, contact:

 Arrow Exploration
 Marshall Abbott, CEO                                                +1 403 651 5995
 Joe McFarlane, CFO                                                  +1 403 818 1033

 Canaccord Genuity (Nominated Advisor and Joint Broker)
 Henry Fitzgerald-O'Connor                                           +44 (0)20 7523 8000

 James Asensio

 Rory Blundell

 George Grainger

 Auctus Advisors (Joint Broker)
 Jonathan Wright                                                     +44 (0)7711 627449
 Rupert Holdsworth Hunt

 Hannam & Partners (Joint Broker)
 Leif Powis                                                          +44 20 7907 8500
 Samuel Merlin

 Camarco (Financial PR)
 Owen Roberts                                                        +44 (0)20 3781 8331
 Rebecca Waterworth

About Arrow Exploration Corp.

Arrow Exploration Corp. (operating in Colombia via a branch of its 100% owned
subsidiary Carrao Energy S.A.) is a publicly traded company with a portfolio
of premier Colombian oil assets that are underexploited, under-explored and
offer high potential growth. The Company's business plan is to expand oil
production from some of Colombia's most active basins, including the Llanos,
Middle Magdalena Valley (MMV) and Putumayo Basin. The asset base is
predominantly operated with high working interests, and the Brent-linked light
oil pricing exposure combines with low royalties to yield attractive potential
operating margins. By way of a private commercial contract with the recognized
interest holder before Ecopetrol S.A., Arrow is entitled to receive 50% of the
production from the Tapir block. The formal assignment to the Company is
subject to Ecopetrol's consent.  Arrow's seasoned team is led by a hands-on
executive team supported by an experienced board. Arrow is listed on the AIM
market of the London Stock Exchange and on TSX Venture Exchange under the
symbol "AXL".

 

Forward-looking Statements

This news release contains certain statements or disclosures relating to Arrow
that are based on the expectations of its management as well as assumptions
made by and information currently available to Arrow which may constitute
forward-looking statements or information ("forward-looking statements") under
applicable securities laws. All such statements and disclosures, other than
those of historical fact, which address activities, events, outcomes, results
or developments that Arrow anticipates or expects may, could or will occur in
the future (in whole or in part) should be considered forward-looking
statements. In some cases, forward-looking statements can be identified by the
use of the words "continue", "expect", "opportunity", "plan", "potential" and
"will" and similar expressions. The forward-looking statements contained in
this news release reflect several material factors and expectations and
assumptions of Arrow, including without limitation, Arrow's evaluation of the
impacts of COVID-19, the potential of Arrow's Colombian and/or Canadian assets
(or any of them individually), the prices of oil and/or natural gas, and
Arrow's business plan to expand oil and gas production and achieve attractive
potential operating margins. Arrow believes the expectations and assumptions
reflected in the forward-looking statements are reasonable at this time, but
no assurance can be given that these factors, expectations, and assumptions
will prove to be correct.

The forward-looking statements included in this news release are not
guarantees of future performance and should not be unduly relied upon. Such
forward-looking statements involve known and unknown risks, uncertainties and
other factors that may cause actual results or events to differ materially
from those anticipated in such forward-looking statements. The forward-looking
statements contained in this news release are made as of the date hereof and
the Company undertakes no obligations to update publicly or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise, unless so required by applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.

Glossary

API:     A specific gravity
(https://glossary.oilfield.slb.com/en/terms/s/specific_gravity)  scale
developed by the American Petroleum Institute (API
(https://glossary.oilfield.slb.com/en/terms/a/api) ) for measuring the
relative density of various petroleum liquids, expressed in degrees.

BOPD:   barrels of oil per day

boe/d:    barrels of oil equivalent per day

Qualified Person's Statement

The technical information contained in this announcement has been reviewed and
approved by Grant Carnie, senior non-executive director of Arrow Exploration
Corp. Mr. Carnie was formerly a member of the Canadian Society of Petroleum
Geologists, holds a B.Sc. in Geology from the University of Alberta and has
over 35 years' experience in the oil and gas industry.

This Announcement contains inside information for the purposes of the UK
version of the market abuse regulation (EU No. 596/2014) as it forms part of
United Kingdom domestic law by virtue of the European Union (Withdrawal) Act
2018 ("UK MAR").

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