Arrow Exploration corrects cash balance to $13M (U.S.)

Executive Summary

• Arrow Exploration reported successful drilling and initial production of appraisal well M-11 at the Mateguafa Attic field (Tapir block, Colombia), encountering multiple hydrocarbon-bearing intervals with ~18 ft of net oil pay in the C7 formation.
• The well is currently producing ~784 BOPD gross (392 BOPD net) at a restricted rate, with plans to test the C9 formation and move the drilling rig to the Icaco pad for exploration drilling in May.
• Corporate production stands at ~5,475 boe/d, the company maintains a $13M cash balance with zero debt, and secured regulatory approval to terminate the COR-39 contract, eliminating a $12M exploration commitment.

Key Details

• M-11 Well Drilling & Completion: Spudded March 9, 2026; reached target depth March 15, 2026. Total measured depth: 11,455 MD ft (9,328 ft TVD). Drilled on time and under budget.
• M-11 Well Reservoir & Completion: Put on production March 22, 2026. Encountered ~18 ft net oil pay in Carbonera C7 formation (22% avg porosity, high resistivities, clean sandstone). Also encountered ~30 ft net oil pay in Carbonera C9 formation (planned for future testing). ESP installed after perforation.
• M-11 Well Performance: Restricted production rate: 32/128 choke, 33-Hz pump frequency. Initial rate: ~784 BOPD gross (392 BOPD net). Oil quality: 31.5° API. Water cut: 25%. Testing indicates capability for higher rates; ultimate flow rate to be determined in coming weeks.
• M-HZ12 Well: Spudded March 27, 2026. Expected production in April.
• Forward Drilling Plans: Rig to move to newly completed Icaco pad to drill an exploration well, expected to spud in May.
• Production & Financials: Total corporate production: ~5,475 boe/d (including restricted M-11 production). Cash balance: $13M USD. No debt.
• Tapir Block Extension: Discussions with authorities ongoing; management confident all conditions for extension have been met.
• COR-39 Contract Termination: Approved by Colombian regulators (ANH) on March 20, 2026. Eliminates $12M exploration commitment at no penalty.
• Ownership/Interest: Arrow holds 50% beneficial interest in Tapir block via private commercial contract with Ecopetrol S.A. interest holder (subject to Ecopetrol consent).

Notable Quotes

• Marshall Abbott, CEO: "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."
• Marshall Abbott, CEO: "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 2-D seismic and the more recently shot 3-D 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."