REG - Arrow Exploration - Arrow Announces Exploration Well IC-1 Results

Arrow ExplorationAnnouncement

26/05/2026 07:00

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RNS Number : 6564F  Arrow Exploration Corp.  26 May 2026

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ARROW ANNOUNCES EXPLORATION WELL IC-1 RESULTS

IC-1 on production

CALGARY, May 26, 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 on the Icaco field on the Tapir Block in the Llanos Basin
of Colombia where Arrow holds a 50 percent beneficial interest.

Icaco 1

The Icaco 1 exploration well (IC-1) was spud May 5, 2026, and reached target
depth on May 9, 2026. The IC-1 well was drilled, on time and under budget, to
a total measured depth of 7,800 feet (7,524 feet true vertical depth) and
encountered multiple hydrocarbon-bearing intervals.

As previously disclosed, the log analysis shows a total of 30 feet of pay in
the Carbonera C7 formation ("C7"), 15 feet of pay in the Gacheta formation,
and 26 feet of pay in the Ubaque formation.

Arrow put IC-1 on production on May 15, 2026, in the C7 where the pay zone
that was perforated is comprised of two clean sandstones with an average
porosity of 25%. An electric submersible pump ("ESP") was inserted in the well
after perforating. During the clean-up period the well reached an average rate
of 735 BOPD gross (368 BOPD net) with a 50% water cut for a 15 hour period
before settling into the current stable production rate.

The well is currently on production at 15/128 choke, 30 Hz pump frequency
resulting in a restricted rate of approximately 628 BOPD gross (314 BOPD net).
The oil quality is 27.8° API and there is a 46% water cut (completion fluid
and formation water).

The testing results indicate that the well is capable of higher rates, with
well and pump optimization, 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.

 

Icaco 2

The Icaco 2 (IC-2) well, a significant step out from the IC-1 well, was spud
on May 18, 2026. The IC-2 well will give Arrow an opportunity to increase
production from Icaco, as well as provide further information on the size and
materiality of the Icaco discovery.

 

Forward Drilling Plans

The Company plans further appraisal and development drilling at the Icaco
field including potential horizontal well development. With continued positive
results at Icaco, the Company would build additional cellars and continue with
development drilling that could last until the third quarter.  After initial
development at the Icaco pad has concluded, the Company plans development
drilling at the AB and CN pads.

Production

Including the restricted production from the IC-1 well, total gross corporate
production is approximately 5,100 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 continued to 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. The Company believes that AECO
gas prices will improve in the third and fourth quarter of 2026 once the
region moves into the winter months. At that time the Pepper field is expected
to be brought back on production.

 

Marshall Abbott, CEO of Arrow commented:

"Management believes the Icaco 1  well result is a material discovery in the
southeastern area of the Tapir Block. Icaco 2, a significant step out to the
north, will help delineate the pool and determine initial volumes and areal
extent of each individual oil producing zone."

"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."

"With production over 5,000 boe/d, Arrow aims to maintain a strong balance
sheet with a healthy cash position, no debt and significant cash flow as seen
in our 2025 audited Financial Statements. In the current oil price
environment, the Company continues to build cash resources. 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

Pay    A reservoir or portion of a reservoir that contains economically
producible hydrocarbons

 

This press release contains various references to the abbreviation "BOE" which
means barrels of oil equivalent. Where amounts are expressed on a BOE basis,
natural gas volumes have been converted to oil equivalence at six thousand
cubic feet (Mcf) per barrel (bbl). The term BOE may be misleading,
particularly if used in isolation. A BOE conversion ratio of six thousand
cubic feet per barrel is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead.

 

Qualified Person's Statement (AIM requirement)

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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