Arrow Exploration's M-8 well producing at 230 bopd

Executive Summary

• Arrow Exploration Corp. reported successful appraisal results for the M-8 well at the Mateguafa Attic field in Colombia, confirming the C9 formation as a viable production zone and initiating restricted production.
• The company provided current production rates for four existing wells, reporting total corporate production of approximately 4,625 boepd, alongside a $11.5M cash balance and zero debt.
• Forward development plans include drilling the M-HZ9 horizontal producer, completing cellars for M-10 and M-11, and advancing an exploration well at the Icaco pad in Q2 2026, while maintaining constructive discussions for a Tapir block extension.

Key Details

• M-8 Well Drilling & Completion: Spudded Dec 14, 2025; reached TD Dec 18, 2025. Drilled to 9,764 ft MD (9,308 ft TVD). Encountered hydrocarbon intervals in the Gacheta, Carbonera C9, and three sands in the Carbonera C7 formation.
• M-8 Testing & Production: Initial tests on the three C7 sands were uneconomic. Well completed in the C9 formation (~30 ft oil pay, 23% avg porosity, high resistivity) with an ESP installed. Currently producing ~230 bopd gross (115 bopd net) at a restricted rate (21/128 choke, 30Hz pump). Oil quality is 31° API with a 78% water cut. Encountered ~12 ft net oil pay in the Gacheta formation (untapped).
• Existing Well Production:
• M-HZ7: ~1,300 bopd gross (650 net), 8% water cut, C9 formation, low decline.
• M-6: ~465 bopd gross (232 net), 20% water cut, C7 formation.
• M-5: ~780 bopd gross (390 net), 60% water cut, C9 formation.
• M-HZ9 Well: Spudded Jan 21, 2026. Targeting C9 formation. Repurposed from water disposal to horizontal producer due to lower-than-forecast water production. Expected to take ~3 weeks to drill/complete before production.
• Forward Drilling & Development: Two additional cellars (M-10, M-11) being built at Mateguafa pad to follow M-HZ9. Rig will move to Icaco pad for an exploration well in Q2 2026 (cellars ready late Feb). Subsequent development planned at RCE, CN, Alberta, and Mateguafa pads. Company retains flexibility to adjust operations based on oil prices.
• Financial & Operational Position: Total corporate production ~4,625 boepd (excludes CN-HZ7, which was shut in due to pump failure at ~250 bopd gross). Cash balance as of Jan 1, 2026: $11.5M USD. Company maintains zero debt.
• Tapir Block Extension: Discussions with authorities are ongoing and constructive. Management is confident all conditions for the extension have been met and expects approval.

Notable Quotes

• Marshall Abbott, CEO: "With M-8 successfully encountering the C9 formation, we continue to view this as an excellent producing zone into which the company plans to drill further horizontal and vertical wells. The M-8 well tested the northernmost extent of the C9 formation and the success of this well in this formation indicates there are additional opportunities to the north."
• Marshall Abbott, CEO: "The M-8 well reinforces the materiality that the Mateguafa Attic discovery represents for Arrow. Future wells will help determine the extent of the pools and the potential reserves additions. The area has become another core area for Arrow with the potential for further horizontal drilling development."
• Marshall Abbott, CEO: "M-9HZ will be the next well drilled in the Mateguafa Attic discovery and an additional two cellars are being prepared for future wells. We look forward to providing further updates on the low-risk ongoing development of the Mateguafa Attic field."