REG - Arrow Exploration - Arrow Announces Appraisal Well M-11 Results

Arrow ExplorationAnnouncement

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RNS Number : 9463Y  Arrow Exploration Corp.  01 April 2026

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ARROW ANNOUNCES APPRAISAL WELLS M-11 RESULTS

M-11 successfully drilled and on production

CALGARY, April 1, 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 11 well

The Mateguafa 11 well (M-11) was spud March 9, 2026, and reached target depth
March 15, 2026.  The M-11 well was drilled, on time and under budget, to a
total measured depth of 11,455 MD feet (9,328 feet true vertical depth) and
encountered multiple hydrocarbon-bearing intervals.

Arrow put the M-11 well on production March 22, 2026 in the Carbonera C7
formation ("C7"), which has approximately 18 feet of net oil pay (true
vertical depth) at this location. The pay zone is a clean sandstone exhibiting
an average porosity of 22% with high resistivities. An electric submersible
pump (ESP) has been inserted in the well after perforating.

The M-11 well also encountered approximately 30 feet of net oil pay (true
vertical depth) in the Carbonera C9 formation ("C9").  Arrow plans to test
this formation in future wells.

The well was put on production at a heavily restricted rate, 32/128 choke and
33 Hz pump frequency, of approximately 784 BOPD gross (392 BOPD net). The oil
quality is 31.5° API and there is a 25% water cut (completion fluid and
formation water).

The testing results indicate that 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 HZ12 well

The Mateguafa HZ (M-HZ12) well was spud March 27, 2026, with expected
production in  April.

Mateguafa Pad

The Mateguafa Pad currently has the following wells on production:

 

Mateguafa 11 well           784 BOPD gross (392 BOPD
net)                 25% water cut
                  C7 formation

Mateguafa 10 well           538 BOPD gross (269 BOPD
net)                 45% water cut
                  C7 formation

Mateguafa HZ9 well        1,386 BOPD gross (693 BOPD
net)             50% water cut
C9 formation

Mateguafa HZ7 well        2,016 BOPD gross (1,008 BOPD
net)         36% water cut                   C9
formation

Mateguafa 6 well             250 BOPD gross (125 BOPD
net)                 48% water cut
                  C7 formation

Mateguafa 5 well             484 BOPD gross (242 BOPD
net)                 82% water cut
                  C9 formation

 

Forward Drilling Plans

After M-HZ12 the rig will move to the newly completed Icaco pad to drill an
exploration well, which is expected to spud in May.

Production

Including the restricted production from the M-11 well, total corporate
production is approximately 5,475 boe/d.

Cash Balance

On March 1, 2026, the Company's cash balance was US$6.4 million.  This
reflects the increased activity drilling wells on the Mateguafa pad,
completing the Icaco pad and initiating operating costs savings projects in
the field. 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 believes 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.

 

Block COR-39

On March 20, 2026, the Company received confirmation from the Colombian
regulators (the ANH) that its application to terminate the COR-39 E&P
contract by mutual agreement has been approved. This eliminates a $12 million
exploration commitment, at no penalty for the Company.

 

Marshall Abbott, CEO of Arrow commented:

"The continued success of the Mateguafa wells reinforces the materiality of
the Mateguafa field to Arrow.  Arrow looks forward to the results of the new
horizontal well, M- HZ12, on the Mateguafa pad."

"After drilling and putting the M-HZ12 well on production, Arrow plans to move
the rig to the newly finished Icaco pad.  The Icaco prospect has been
developed by the Arrow team using both 2D seismic and the more recently shot
3D seismic program.  Management believes the Icaco prospect will also result
in a material discovery for Arrow and we look forward to updating our
shareholders on the progress at Icaco over the coming months."

 

 

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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