Arrow Announces Exploration Well IC-1 Results

The most recent release (May 26, 2026) reports that the Icaco 1 (IC‑1) exploration well on the Tapir Block in Colombia has been tied into production. The well is flowing at a restricted rate of approximately 628 BOPD gross (314 BOPD net) with oil quality of 27.8° API and a 46% water cut. The IC‑2 step‑out well was spudded on May 18, 2026, to further delineate the discovery. Total gross corporate production is approximately 5,100 boe/d, which excludes the offline CN‑HZ12 well and the shut‑in Pepper gas field in Canada. Management describes IC‑1 as a material discovery that demonstrates the repeatability of the play type across the Tapir Block, and it plans further appraisal and horizontal development drilling through Q3 2026, followed by wells on the AB and CN pads.

Previous news shows a clear progression: - Late 2025: Mateguafa Attic field discovered; M‑5, M‑6, M‑HZ7, M‑HZ9, M‑10, M‑11, M‑HZ12 wells drilled and brought on production with strong rates. - March‑May 2026: Rig moves to Icaco pad; IC‑1 logs (May 13) show 30 ft C7, 15 ft Gacheta, 26 ft Ubaque pay zones. The production test now confirms commercial flow rates. - Ongoing: Corporate cash balance is healthy (US$24.2M as of May 1, 2026), no debt, and the 2026 work program is fully funded from cash flow.

The IC‑1 production test is a positive but expected event. The well was always forecast to be material; the log results earlier in May had already flagged multiple hydrocarbon‑bearing intervals. The actual production rate (628 BOPD gross, 314 net) is modest relative to other wells on the block (e.g., M‑HZ7 at 1,694 BOPD gross, M‑11 at 784 BOPD gross). The 46% water cut is elevated and will need to be monitored, but the well is online and generating cash flow. The announcement does not contain a genuinely new surprise – it confirms the discovery and adds incremental production, pushing total output from ~5,000 boe/d to ~5,100 boe/d. The market had largely priced in a successful result after the May 13 log update and the broader ramp‑up in production from the Mateguafa pads. Therefore, the news qualifies as routine‑positive: it delivers on management’s prior promises without altering the fundamental trajectory of the company.

Arrow Exploration Corp. is a junior oil & gas producer listed on the TSX Venture Exchange (ticker AXL) with assets in Colombia’s Llanos Basin and minor production in Canada. The flagship project is the Tapir Block in the Llanos Basin, where Arrow holds a 50% beneficial interest. The block hosts multiple fields – Carrizales Norte (mature horizontal and vertical wells), Rio Cravo Este, the Mateguafa Attic discovery, and now the Icaco field. Over the past year, the company has executed a successful low‑risk exploitation strategy: it drills vertical and horizontal wells targeting the Carbonera C7, C9, Ubaque, and Gacheta formations, bringing them on production quickly and using cash flow to fund the next well. Outside Colombia, Arrow holds the Pepper natural gas field in Alberta, which is currently shut in due to low AECO prices.