REG - Arrow Exploration - Operational Update

Arrow ExplorationAnnouncement

15/07/2025 07:00

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RNS Number : 0149R  Arrow Exploration Corp.  15 July 2025

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OPERATIONAL UPDATE

AB HZ4 and AB HZ5 now on production

CALGARY, July 15, 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

-      Current production between 4,600 and 4,800 boe/d net to Arrow.

 

-      2 horizontal wells and 2 vertical wells drilled in Q2 and Q3 to
date.

o  AB HZ5 brought on production on July 2, 2025, and currently producing
1,790 BOPD gross (895 BOPD net).

o  AB HZ4 brought on production on June 11, 2025, and currently producing 880
BOPD gross (440 BOPD net).

o  RCE9 vertical well brought on production on June 23, 2025, and currently
producing 201 BOPD gross (100.5 BOPD net).

o  CN11 vertical well brought on production on April 17, 2025, and currently
producing 143 BOPD gross (72.5 BOPD net).

 

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

Production

Total corporate production is currently between 4,600 and 4,800 boe/d net.
Arrow's base production has flattened out and is experiencing shallower
declines, as expected.

 

Additional production is expected to be added during the second half of the
year as Arrow focuses on an accelerated drilling program.   In light of the
recent movements in oil prices and current market volatility, Arrow has the
ability to balance drilling infill and development wells with low-risk
exploration activity which has the potential to increase Arrow's reserve base
and build up drilling inventory.

 

Cash Balance

On July 1, 2025, the Company had a cash balance of US$13.5 million and held no
debt.  Further, the Company has no long-term rig contracts or obligations to
drill wells.  The Company has been able to carry out an accelerated drilling
program while maintaining a healthy balance sheet.

 

The combination of cash on the balance sheet and robust operating cashflow
continues to be a key corporate strength in this volatile market.

 

Drilling Operations - Tapir Block

 

Carrizales Norte field

 

On the Carrizales Norte field, the Company has recently drilled one vertical
production well from the CN pad.

The Carrizales Norte 11 (CN 11) well was spud on April 2, 2025, and reached
target depth on April 8, 2025. CN 11 targeted the C7 zone at Carrizales Norte
field. The well was drilled to a total measured depth of 8371 MD feet (7798
feet true vertical depth) and encountered multiple hydrocarbon-bearing
intervals.

On April 17, 2025, Arrow put the CN 11 well on production in the C7 formation
which has approximately 11 feet (true vertical depth) of oil charged
sandstone. The well encountered an initial high water cut of 73%. CN 11 is
producing at a stabilized rate of 143 BOPD gross (72.5 BOPD net) with a water
cut of 88%.

 

Alberta Llanos field

 

At the Alberta Llanos field, the Company has recently drilled two horizontal
production wells from the Alberta, Llanos pad, both on time and within
budget.  Arrow's experience drilling horizontal wells in the area is
resulting in improved efficiency in the field.

 

The Alberta Llanos HZ4 (AB HZ4) horizontal well was spud on May 11, 2025, and
reached target depth on June 5, 2025. AB HZ4 targeted the Ubaque zone at the
Alberta, Llanos field. The well was drilled to a total measured depth of 13687
MD feet (8558 feet true vertical depth) and encountered multiple
hydrocarbon-bearing intervals.  The well was completed with Inflow Control
Devices (ICDs).

On June 11, 2025, Arrow put the AB HZ4 well on production in the Ubaque
formation which has approximately 2837 feet (measured depth) of oil charged
sandstone.  AB HZ4 is producing at a stabilized rate of 880 BOPD gross (440
BOPD net) with a water cut of 19%.

The Alberta Llanos HZ5 (AB HZ5) horizontal well was spud on June 12, 2025, and
reached target depth on June 23, 2025. AB HZ5 targeted the Ubaque zone at the
Alberta, Llanos field. The well was drilled to a total measured depth of 12188
MD feet (8556 feet true vertical depth) and encountered multiple
hydrocarbon-bearing intervals.  The well was completed with ICDs.

On July 2, 2025, Arrow put the AB HZ5 well on production in the Ubaque
formation which has approximately 1813 feet (measured depth) of oil charged
sandstone.  AB HZ5 is producing at a stabilized rate of 1790 BOPD gross (895
BOPD net) with a water cut of 3%.

RCE Field

 

On the Rio Cravo Este (RCE) field, the Company has recently drilled one
vertical production well from the RCE pad.

The Rio Cravo Este 9 (RCE 9) well was spud on June 6, 2025, and reached target
depth on June 14, 2025. RCE 9 targeted the C7 zone at Carrizales Norte field.
The well was drilled to a total measured depth of 8940 MD feet (8305 feet true
vertical depth) and encountered multiple hydrocarbon-bearing intervals.

On June 23, 2025, Arrow put the RCE 9 well on production in the C7 formation
which has approximately 20 feet (true vertical depth) of oil charged
sandstone. The well encountered an initial high water cut of 95%. RCE 9 is
producing at a stabilized rate of 201 BOPD gross (100.5 BOPD net) with a water
cut of 88%.

Drilling Schedule

Currently Arrow has two drilling rigs working in the field.

The rig at Alberta Llanos is being disassembled and moved to the Carrizales
Norte pad where the Company plans to drill two horizontal wells into the
Ubaque formation.

The rig at Rio Cravo Este is currently drilling a short horizontal well into
the Ubaque formation.  This will be the first horizontal well targeting the
Ubaque at RCE.

Arrow is continuously reviewing the original Board-approved $50MM budget and
drilling schedule.  Arrow does not have any contractual commitments to employ
additional rigs or to drill additional wells.

Arrow's strong balance sheet allows the Company to remain flexible in a
volatile oil price environment and the Company will make further announcements
should modifications to its capital program be determined.

The Company is still considering the timing of any share buyback, with a
decision to follow further progress in the 2025 drilling campaign.

East Tapir 3-D Seismic Program

The initial processing and interpretation of the East Tapir 3-D program has
been accomplished. The East Tapir 3-D survey covers a further 100 sq. km where
existing leads on the 2-D dataset have been defined as prospects. The Icaco
and Macoya  prospects are further supported by the new 3-D program and Arrow
is focused on testing the Icaco prospect in late 2025 or early 2026.

 

Marshall Abbott, CEO of Arrow commented:

"The AB HZ5 and AB HZ4 horizontal wells have been successfully developed at
the Alberta Llanos field, with rates and pressures higher than originally
forecast.  Both wells are highly accretive with payback expected in the first
six months at current oil prices.  The success of these two horizontal wells
proves the Ubaque concept at Alberta Llanos and has resulted in further
development wells being planned."

"The East Tapir 3-D seismic program has resulted in a number of new prospects
including Icaco and Macoya.  These two prospects appear to be stacked
reservoirs similar to those found at the RCE and Carriazales Norte fields.
Management is encouraged by technical work done to refine these prospects and
has started the surface land acquisition process to test these prospects in
the near future."

"Arrow continues to review and develop its drilling schedule for the 2025 and
2026 programs.  Market conditions are continuously reviewed to show
development options that will allow the company to grow production and remain
financially strong."

"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 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

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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