REG - Arrow Exploration - Arrow Announces Appraisal Well M-8 Results

Arrow ExplorationAnnouncement

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RNS Number : 6297Q  Arrow Exploration Corp.  28 January 2026

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ARROW ANNOUNCES APPRAISAL WELL M-8 RESULTS

M-8 successfully drilled and on production

CALGARY, January 28, 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 the 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 8 well

The Mateguafa 8 (M-8) well was spud on December 14, 2025, and reached target
depth on December 18, 2025.  The M-8 well was drilled, on time and on budget,
to a total measured depth of 9,764 MD feet (9,308 feet true vertical depth)
and encountered multiple hydrocarbon-bearing intervals, including the Gacheta,
the Carbonera C9 formation ("C9") and three sands in the Carbonera C7
formation ("C7").

Arrow began a testing program on the three C7 sands by initially putting all
three sands on production and later isolating the top C7 sand.  The two tests
had uneconomic results, and the decision was made to complete the well in the
C9 formation.

Arrow has put the M-8 well on production in the C9 formation, which has
approximately 30 feet of oil pay.  The pay zone is a clean sandstone
exhibiting an average porosity of 23% with high resistivities. An electric
submersible pump (ESP) has been inserted in the well after perforating.

The well was put on production at a heavily restricted rate, 21/128 choke and
30 Hz pump frequency, of approximately 230 BOPD gross (115 BOPD net). The oil
quality is 31° API and there is a 78% water cut (completion fluid and
formation water).

The M-8 well also encountered approximately 12 feet of net oil pay (true
vertical depth) in the Gacheta formation that has not been tested and will be
exploited in future wells.

The testing results indicate the well is capable of higher rates and the
ultimate flow rate will be determined in the first few weeks of production.

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

Mateguafa HZ7 well

The Mateguafa HZ7 (M-HZ7) continues to produce at a current rate of
approximately 1,300 BOPD gross (650 BOPD net) with an 8% water cut. The M-HZ7
well is producing from the C9 formation.  The well has experienced very low
decline rates during this initial production phase.

Mateguafa 6 well

The Mateguafa 6 well (M-6) continues to produce at a current rate of
approximately 465 BOPD gross (232 BOPD net) with a 20% water cut. The M-6 well
is producing from the C7 formation.

Mateguafa 5 well

The Mateguafa 5 well (M-5) continues to produce at a current rate of
approximately 780 BOPD gross (390 BOPD net) with a 60% water cut. The M-5 well
is producing from the C9 formation.

Mateguafa HZ9 well

The Mateguafa Horizontal 9 (M-HZ9) spud on January 21, 2026.  This well is
targeting the C9 formation, which all wells drilled at Mateguafa have
encountered.  Expectations are that the well will take approximately three
weeks to drill and complete and will be put onto production thereafter.
Original planning had the M-9 well being drilled to be a water disposal well,
however, as water production has been lower than forecast, the M-9 well was
reengineered to be a horizontal producer.

Mateguafa 10 and 11 wells

Arrow is building two additional cellars at the Mateguafa pad to facilitate
further development of the reservoir.  Expectations are that Mateguafa 10 and
11 ("M-10", "M-11") will be drilled shortly after M-HZ9.

Forward Drilling Plans

After the Mateguafa development wells are drilled and put on production, the
Company plans to move the rig to the Icaco pad to drill an exploration well,
which is expected to spud in Q2.  The Icaco pad has been completed, and
currently five cellars are being constructed.  Expectations are that the
cellars will be complete and ready to receive the rig from late February.
After the exploration well at Icaco, and potential follow up wells at that
location, the rig will be moved to the RCE, CN, Alberta and Mateguafa pads for
follow-up development wells.  Arrow is reviewing oil price and other market
considerations and has the flexibility to increase or decrease operations as
required.  Arrow's focus is to increase production while maintaining a strong
balance sheet and the financial flexibility to take advantage of acquisition
and acceleration opportunities.

Production

Including the restricted production from the M-8 well, total corporate
production is approximately 4,625 boe/d.  This does not include any
production from the CN-HZ7 well which was flowing at approximately 250 BOPD
gross (125 BOPD net) before being shut in due to a pump failure.

Cash Balance

On January 1, 2026, the Company's cash balance was US$11.5 million.  The
Company continues to have no debt.

 

Tapir Extension

Arrow and its partner in the Tapir block remain in discussions with
authorities on the extension of the Tapir block.  To date the dialog has been
very constructive.  Arrow is confident that all conditions required for the
extension to be granted have been met and management remains very confident
that the extension will be granted.  The Company will continue to update the
market on developments as they occur.

 

 

Marshall Abbott, CEO of Arrow commented:

"With M-8 successfully encountering the C9 formation, we continue to view this
as an excellent producing zone into which the Company plans to drill further
horizontal and vertical wells.  The M-8 well tested the northernmost extent
of the C9 formation and the success of this well in this formation indicates
there are additional opportunities to the north.  In the M-8 well the C7 zone
was not economic but showed very strong oil shows in petrophysical logs and
the Company is exploring strategies to best produce the C7 zone in this area."

"The M-8 well reinforces the materiality that the Mateguafa Attic discovery
represents for Arrow.  Future wells will help determine the extent of the
pools and the potential reserves additions.  The area has become another core
area for Arrow with the potential for further horizontal drilling
development."

"M-9HZ will be the next well drilled in the Mateguafa Attic discovery and an
additional two cellars are being prepared for future wells.  We look forward
to providing further updates on the low-risk ongoing development of the
Mateguafa Attic field."

 

 

 

 

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

 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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