REG - Arrow Exploration - Arrow Announces Operational Update

Arrow ExplorationAnnouncement

09/09/2025 07:00

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RNS Number : 4970Y  Arrow Exploration Corp.  09 September 2025

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OPERATIONAL UPDATE

RCE HZ10, CN HZ12, CN HZ13 and AB3 on production

CALGARY, September 9, 2025 - 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 recent operational activity on the Tapir Block in the Llanos Basin
of Colombia where Arrow holds a 50 percent beneficial interest.

 

Highlights

-      Four wells brought on production:   so far in H2 2025:

o  AB-3 vertical well recompletion brought on production on September 5,
2025, and currently producing 840 BOPD gross (420 BOPD net).

o  CN HZ13 brought on production on August 28, 2025, and currently producing
1,002 BOPD gross (501 BOPD net).

o  CN HZ12 brought on production on August 5, 2025, and currently producing
532 BOPD gross (266 BOPD net).

o  RCE HZ10 brought on production on July 16, 2025, and currently producing
200 BOPD gross (100 BOPD net).

 

-      Strong balance sheet, no debt or drilling commitments.  Arrow has
flexibility in its work program, with multiple drill ready pads, and is
actively exploring potential acquisition opportunities.

Production

Total corporate production is currently over 4,800 boe/d net reflecting
contributions from wells that have recently been brought on production from
the RCE, AB and CN pads.

 

Additional production is expected to be added during the third and fourth
quarters as Arrow focuses on a low-risk exploration activity which has the
potential to increase Arrow's reserves base and build up drilling inventory.
During Q2 the Company invested significantly in water disposal infrastructure
with Tapir block water disposal capability now over 130,000 barrels of water
per day, further enabling the Company to increase production.

 

Drilling Operations - Tapir Block

 

Carrizales Norte field

On the Carrizales Norte field, the Company has recently drilled two
development wells from the CN pad.

The Carrizales Norte HZ12 (CN HZ12) well was spud on July 18, 2025, and
reached target depth on August 2, 2025. CN HZ12 targeted the Ubaque zone at
Carrizales Norte field. The well was drilled to a total measured depth of
10,929 MD feet (8,419 feet true vertical depth).

On August 5, 2025, Arrow put the CN HZ12 well on production in the Ubaque
formation with a total horizontal oil-bearing section of 423 MD feet. CN HZ12
is producing at a stabilized rate of 532 BOPD gross (266 BOPD net) with a
water cut of 75%.

The Carrizales Norte HZ13 (CN HZ13) well was spud on August 6, 2025, and
reached target depth on August 23, 2025. CN HZ13 targeted the Ubaque zone at
Carrizales Norte field. The well was drilled to a total measured depth of
11,232 MD feet (8,500 feet true vertical depth).

On August 28, 2025, Arrow put the CN HZ13 well on production in the Ubaque
formation with a total horizontal oil-bearing section of 797 MD feet. CN HZ13
is producing at a stabilized rate of 1,002 BOPD gross (501 BOPD net) with a
water cut of 32%.

 

RCE Field

The Rio Cravo Este 10 horizontal (RCE HZ10) well was spud on June 24, 2025,
and reached target depth on July 12, 2025. RCE HZ10 targeted the Ubaque zone
at Carrizales Norte field. The well was drilled to a total measured depth of
10,940 MD feet (8,014 feet true vertical depth).

On July 16, 2025, Arrow put the RCE HZ10 well on production in the Ubaque
formation with a total oil- bearing section of 1,040 MD feet. RCE HZ10 is
producing at a stabilized rate of 200 BOPD gross (100 BOPD net) with a water
cut of 72%.

 

Alberta Llanos field

At the Alberta Llanos field, the Company has recently recompleted the AB-3
vertical well targeting the C7 formation.

 

On September 5, 2025, Arrow put the AB-3 well on production in the C7
formation which has approximately 20 feet (true vertical depth) of oil charged
sandstone. AB-3 is producing  840 BOPD gross (420 BOPD net) with a water cut
of 73% and continues to clean up load fluid.

 

Drilling Schedule

Currently the drilling rig is moving to the Mateguafa Oeste field to drill an
exploration vertical well (MO-1).  The well is expected to spud mid-September
and is targeting the Ubaque reservoir.  On the basis of a successful
exploration well at MO-1, the Company plans to drill four additional horizonal
wells on the prospect.  The exploration of Mateguafa Attic, Icaco, Macoya and
the Capullo prospects are expected to follow the Mateguafa Oeste
development.

 

Marshall Abbott, CEO of Arrow commented:

"The Carrizales Norte field continues to deliver with successful wells CN HZ12
and CN HZ13. Both horizontal wells have further developed the Carrizales Norte
field.  The success of these two horizontal wells proves future development
potential at Carrizales Norte."

"The RCE HZ10 well drilled into the Ubaque was a successful exploration
target. The well is on production, however, the reservoir is tighter than at
Carrizales Norte. The Company is exploring completion techniques that could
results in higher production results in the Ubaque at RCE."

"The AB-3 recompletion at the Company's Alberta Llanos field is on production
from the C7 and continuing to clean up. The original vertical well targeted
the Ubaque and proved up the reservoir for the AB HZ4 and AB HZ5 wells.  The
C7 production is highly encouraging for future C7 development at both Alberta
Llanos and the northern extent of the CN field."

"We appreciate the support of our longstanding shareholder base as well as the
dedication of our talented staff."

 

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

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

About Arrow Exploration Corp.

Arrow Exploration Corp. (operating in Colombia via a branches of its 100%
owned subsidiary Arrow Exploration Switzerland GmbH) 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. Pursuant to certain private
agreements entered between Arrow and its partner, Arrow is entitled to receive
50% of the production from the Tapir block and has the right to request
approval to Ecopetrol S.A. for the assignment of 50% of all rights, interests
and obligations under the Tapir Association Contract. 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 global pandemics, 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

MD      Measured Depth

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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