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锟� 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.
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."