Arrow Exploration puts Mateguafa HZ7 well on production

Executive Summary

• Arrow Exploration Corp. reports successful drilling and initial production results for the Mateguafa HZ7 (M-HZ7) appraisal well in the Mateguafa Attic field, Colombia. The well was drilled on time and on budget, encountering significant hydrocarbon-bearing intervals in both the C9 and C7 formations.
• The M-HZ7 well is currently producing at a restricted rate of approximately 1,694 barrels of oil per day (gross), with initial results exceeding expectations and indicating potential for higher flow rates.
• Total corporate production is reported at approximately 4,510 barrels of oil equivalent per day (boepd), excluding the temporarily shut-in M-5 well. The company outlines forward drilling plans including the upcoming M-8 well and the final 2025 well, M-9.

Key Details

• M-HZ7 Well Performance:
  • Spudded: Nov. 22, 2025; Target depth reached: Dec. 4, 2025.
  • Total Measured Depth: 14,253 feet (8,440 feet true vertical depth).
  • Drilled on time and on budget.
  • C9 Formation: Approximately 4,053 feet of horizontal oil pay. Clean sandstone, average porosity 23%, high resistivities. Equipped with an Electric Submersible Pump (ESP).
  • C7 Formation: Encountered approximately 20 feet of net oil pay (true vertical depth).
  • Current Production: ~1,694 bopd gross (847 bopd net) at a restricted rate (25/128 choke, 30-hertz pump frequency).
  • Oil Quality: 30.6-degree API gravity.
  • Water Cut: 4% (completion fluid and formation water).
  • Status: Well is cleaning up; testing indicates capability for higher rates.
• M-6 Well Performance:
  • Producing from C7 formation.
  • Current Production: ~772 bopd gross (386 bopd net).
  • Water Cut: 4%.
  • Status: Very low decline rates during initial production phase.
• M-5 Well Status:
  • Currently shut in for a seven-day mandated pressure test.
  • Pre-shutdown Production: ~800 bopd gross (400 bopd net) from C9 formation.
  • Water Cut: 30%.
  • Expectation: Resume production at similar rates post-test; rate increase noted since November due to cleanup.
• M-8 Well Status:
  • Spudded: Dec. 14, 2025.
  • Target: C7 formation.
  • Timeline: Expected to take ~2 weeks to drill and complete; production expected in late December.
• Forward Drilling Plans:
  • M-9 Well: To be drilled after M-8 is on production. It is a delineation well intended for water disposal. Located outside estimated pool extent but could produce if pool extends beyond seismic interpretation.
  • Future: Additional horizontal and vertical development wells in Mateguafa field, followed by rig move to Icaco for a first exploration well.
• Corporate Production:
  • Total: ~4,510 boepd (includes restricted M-HZ7 production).
  • Excludes M-5 production (~800 bopd gross) while shut in.
• Ownership: Arrow holds a 50-per-cent beneficial interest in the Tapir block in the Llanos basin, Colombia.

Notable Quotes

• Marshall Abbott, CEO: "The M-HZ7 well was drilled on time and on budget and initial production has exceeded expectations. In addition to the thick pay zone encountered in the C7 formation, currently behind pipe, the C9 formation has proven to be an excellent producing zone into which the company plans to drill additional horizontal wells."
• Marshall Abbott, CEO: "The M-HZ7 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 definitely turned into another core area for Arrow with the potential for further horizontal drilling development."
• Marshall Abbott, CEO: "M-9 will be the final well drilled in the 2025 program. This large stepout well's primary purpose is to become a water disposal well for the Mateguafa area... We look forward to providing further updates on the low-risk ongoing development of the Mataguafa Attic field."