Arrow Announces Appraisal Well M-12 Results

• Mateguafa H-Z12 Well Results: The company successfully drilled and commenced production on well M-HZ12 in Colombia's Tapir Block.
• Production Rates: Initial rate is approximately 564 BOPD gross (282 BOPD net) with a 33/128 choke. Oil quality is 32° API with a 60% water cut.
• Total Corporate Production: Approximately 5,000 boe/d supported by multiple active wells on the Mateguafa Pad.
• Financial Position: Cash balance as of May 1, 2026, is US$24.2 million with no debt outstanding.
• Operational Updates: Icaco 1 exploration well spudded on May 5, 2026. Workover rig contracted for Tapir block recompletions expected late Q2 2026. CN-HZ12 well offline awaiting workover. Pepper gas field shut in due to low natural gas prices.
• Realized Prices: $87 US/barrel (March) and $90 US/barrel (April).

• Production Growth Validation: The M-HZ12 results confirm the continued materiality of the Mateguafa field, aligning with previous announcements regarding M-5, M-6, and M-7 success. This is consistent with the trajectory established in Q4 2025 and early 2026 news.
• Cash Position Anomaly: The cash balance jumped from ~$6.4 million (March) to $24.2 million (May). While positive, this significant increase without an explicit financing announcement suggests strong operational free cash flow generation or undisclosed capital events. This reduces immediate liquidity risk but warrants scrutiny on the source of funds in future filings.
• Routine Nature: The news is primarily an operational update following a series of successful appraisal wells. It does not introduce new geological discoveries outside known blocks (Mateguafa Attic) nor does it announce M&A or major strategic shifts.
• Market Expectation: Given the consistent production growth from ~4,000 boe/d in late 2025 to ~5,000 boe/d in May 2026, this news is largely priced into the current stock trend and does not constitute a surprise catalyst.

• Company: Arrow Exploration Corp. focuses on oil and gas exploration and production in Colombia (Tapir Block) and Canada (Alberta Llanos).
• Flagship Project: Mateguafa Attic Field within the Tapir Block, Colombia. This field has driven the majority of recent production growth and reserve additions.
• Development Status: The company is transitioning from exploration to development drilling on the Mateguafa pad, with multiple horizontal wells (M-HZ7, M-HZ9, M-HZ12) now producing.
• Exploration Pipeline: Icaco prospect identified via 3D seismic for Q1/Q2 2026 drilling represents the next growth vector outside the core Mateguafa area.