REG - Arrow Exploration - Arrow Announces Appraisal Well M-HZ7 Results

Arrow ExplorationAnnouncement

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RNS Number : 0239M  Arrow Exploration Corp.  18 December 2025

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ARROW ANNOUNCES APPRAISAL WELL M-HZ7 RESULTS

M-HZ7 successfully drilled and on production

CALGARY, December 18, 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 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 HZ7 well

The Mateguafa HZ7 (M-HZ7) well was spud on November 22nd, 2025, and reached
target depth on December 4th, 2025.  The M-HZ7 well was drilled, on time and
on budget, to a total measured depth of 14,253 MD feet (8,440 feet true
vertical depth) and encountered multiple hydrocarbon-bearing intervals.

Arrow has put the M-HZ7 well on production in the Carbonera C9 formation
("C9"), which has approximately 4,053 feet of horizontal 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 M-HZ7 well also encountered approximately 20 feet of net oil pay (true
vertical depth) in the Carbonera C7 formation ("C7").

The well was put on production at a heavily restricted rate, 25/128 choke and
30 Hz pump frequency, of approximately 1,694 BOPD gross (847 BOPD net). The
oil quality is 30.6° API and there is a 4% water cut (completion fluid and
formation water).  The well is continuing to clean up.

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 6 well

The Mateguafa 6 well (M-6) continues to produce at approximately 772 BOPD
gross (386 BOPD net) with a 4% water cut. The M-6 well is producing from the
C7 formation.  The well has experienced very low decline rates during this
initial production phase.

 

Mateguafa 5 well

The Mateguafa 5 well (M-5) is currently shut in for a 7-day mandated pressure
test.  Before being shut in, the well was producing at approximately 800 BOPD
gross (400 BOPD net) with a 30% water cut. The M-5 well is producing from the
C9 formation.  Management's expectations are that the well will resume
production at similar rates after the pressure test is complete.  The
increase in the production rate from this well since the well results were
announced in November is due to the well cleaning up after the original
production period.

Mateguafa 8 well

The Mateguafa 8 (M-8) well was spud on December 14th, 2025.  This well is
targeting the C7 formation, which all wells drilled at Mateguafa have
encountered.  Expectations are that the well will take approximately two
weeks to drill and complete and will be put onto production in late December

Forward Drilling Plans

After the M-8 well is put on production the company plans to drill the
Mateguafa 9 (M-9) well which will be drilled as a delineation well to be used
 for water disposal.  Arrow then plans to drill additional horizontal and
vertical development wells into the Mateguafa field before moving the rig to
Icaco for a first exploration well.

Production

Including the restricted production from the M-HZ7 well, total corporate
production is approximately 4,510 boe/d.  This does not include any
production from the M-5 well which was flowing at approximately 800 BOPD gross
(400 BOPD net) before being shut in and is expected to resume production
shortly.

Marshall Abbott, CEO of Arrow commented:

"The M-HZ7 well was drilled on time and on budget and initial production has
exceeded expectations. In addition to the thick pay zone encountered in the C7
formation, currently behind pipe, the C9 formation has proven to be an
excellent producing zone into which the Company plans to drill additional
horizontal wells.

"The M-HZ7 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 definitely turned
into another core area for Arrow with the potential for further horizontal
drilling development.

"M-9 will be the final well drilled in the 2025 program.  This large step-out
well's primary purpose is to become a water disposal well for the Mateguafa
area.  The well is being located outside the estimated extent of the pool,
but could become a producing well if the pool extends beyond seismic
interpretation.  We look forward to providing further updates on the low-risk
ongoing development of the Mataguafa 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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