Arrow Announces Appraisal Wells M-9HZ, M-10 Results

Executive Summary

• Arrow Exploration reports successful spudding, drilling and initial production of multiple Mateguafa field wells (M‑10, M‑9HZ) with combined corporate output of ~4,900 boe/d.
• Initial flow rates are modest due to restricted chokes but indicate potential for higher sustained production; early decline rates are low.
• Cash balance stands at US$7.2 million with no debt, and the company is advancing a drilling program that includes recompleting M‑8 as a water disposal well, drilling M‑11, and moving to the newly completed Icaco pad in April.

Key Details

• Mateguafa 10 (M‑10) – Spud Feb 11, reached target depth Feb 18; MD 10,930 ft (TVD 9,294 ft). Produced from Carbonera C7 formation (≈20 ft net oil pay, 20% porosity) at ~1,100 BOPD gross (550 BOPD net), 31° API, 6% water cut. Also intersected ≈25 ft net oil pay in C9; future testing planned.
• Mateguafa HZ (M‑9HZ) – Spud Jan 21, reached target depth Feb 7; MD 15,025 ft (TVD 8,427 ft). Longest horizontal well drilled by Arrow in Colombia (≈5,025 ft horizontal section). Initial production ~850 BOPD gross (425 BOPD net), 31° API, 16% water cut. Pump frequency being increased to boost rates.
• Mateguafa HZ7 (M‑HZ7) – Producing ≈1,250 BOPD gross (625 BOPD net) from C9 with 11% water cut; low decline observed.
• Mateguafa 6 (M‑6) – Producing ≈410 BOPD gross (205 BOPD net) from C7, 40% water cut.
• Mateguafa 5 (M‑5) – Producing ≈676 BOPD gross (338 BOPD net) from C9, 71% water cut.
• Mateguafa 8 (M‑8) – Decision to convert to a water disposal well; recompletion expected within one week plus ~6 weeks regulatory approval.
• Total Corporate Production – Approximately 4,900 boe/d (including restricted rates from M‑9HZ and M‑10). CN‑7 well shut in due to pump failure (previously 250 BOPD gross).
• Cash Position – US$7.2 million as of Feb 1 2026; no debt.
• Forward Drilling Plans – After M‑8 recompletion, rig will move to drill vertical well M‑11 targeting C7 and C9, then shift to Icaco pad for an exploration well slated to spud in April.
• Tapir Block Extension – Ongoing constructive discussions with authorities; management confident extension conditions have been met.

Notable Quotes

“The success of the M‑9HZ and M‑10 wells reinforce the materiality of the Mateguafa field to Arrow… The initial development wells drilled at Mateguafa continue to produce at considerable rates with low decline, with significant further pay seen in formations to which Arrow plans to return at a later date.” – Marshall Abbott, CEO

“After drilling and putting the M‑11 well on production, Arrow plans to move the rig to the newly finished Icaco pad… Management believes the Icaco prospect will also result in a material discovery for Arrow.” – Marshall Abbott, CEO