Arrow Exploration Corp. (AIM: AXL) (TSXV: AXL,OTC:CSTPF) (“Arrow” or the “Company”), the fast-growing operator with a portfolio of assets in key Colombian hydrocarbon basins, is pleased to provide an update on operations at the Mateguafa Attic field on the Tapir block in Colombia’s Llanos Basin, where Arrow has a 50 percent economic interest.
MATEGUAAAAH HZ7 well
The Mateguafa HZ7 (M-HZ7) well was spudded on November 22, 2025 and reached the target depth on December 4, 2025. The M-HZ7 well was drilled on time and on budget to a total measured depth of 14,253 MD feet (8,440 feet true vertical depth) and encountered multiple hydrocarbon bearing intervals.
Arrow has placed the M-HZ7 well on production in the Carbonera C9 formation (“C9”), which has approximately 4,000 feet of horizontal oil. The pay zone is a clean sandstone with an average porosity of 23% and high resistance. After perforating, an electric submersible pump (ESP) was placed in the well.
The M-HZ7 well also encountered approximately 20 feet of net oil yield (true vertical depth) in the Carbonera C7 formation (“C7”).
The well was placed on production at a severely limited speed, 25/128 choke and 30 Hz pump frequency, of approximately 1,694 BOPD gross (847 BOPD net). The oil quality is 30.6° API and there is a water loss of 4% (completion fluid and formation water). The well is still being cleaned.
The test results indicate that the well can reach higher velocities and the final flow rate will be determined in the first few weeks of production.
Initial production results are not necessarily indicative of long-term performance or ultimate recovery.
Mategufa 6 good
The Mateguafa 6 well (M-6) continues to produce at approximately 772 BOPD gross (386 BOPD net) with a 4% water cut. The M-6 well is producing from the C7 formation. The well has experienced very low decline rates during this first production phase.
Mategufa 5 Well
The Mateguafa 5 well (M-5) is currently confined for a seven-day mandatory pressure test. Before the well was shut in, the well was producing approximately 800 BOPD gross (400 BOPD net) with a water loss of 30%. The M-5 well is producing from the C9 formation. Management’s expectations are that the well will resume production at a similar pace after the pressure test is completed. The increase in production rate from this well since the well results were announced in November is due to the cleanup of the well after the original production period.
Mategufa 8 good
The Mateguafa 8 (M-8) well was spudded on December 14, 2025. This well targets the C7 formation, which all wells drilled in Mateguafa encountered. The drilling and completion of the well is expected to take approximately two weeks and will be put on production in late December.
Forward drilling plans
After the M-8 well comes into production, the company plans to drill the Mateguafa 9 (M-9) well, which will be drilled as a delineation well to be used for water drainage. Arrow then plans to drill additional horizontal and vertical development wells in the Mateguafa field before moving the rig to Icaco for an initial exploration well.
Production
Including limited production from the M-HZ7 well, total operating production is approximately 4,510 boe/d. This does not include production from the M-5 well, which had a volume of approximately 800 BOPD gross (400 BOPD net) before shut-in and is expected to resume production soon.
Marshall Abbott, CEO of Arrow, commented:
“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, which is currently behind the pipe, the C9 formation has proven to be an excellent production zone into which the company plans to drill additional horizontal wells.
“The M-HZ7 well reinforces the materiality that the Mateguafa Attic discovery represents for Arrow. Future wells will help determine the size of the pools and the potential additions to reserves. The area has definitively turned into another core area for Arrow with the potential for further horizontal drilling development.
“M-9 will be the final well drilled in the 2025 program. The primary purpose of this large step-out well is to become a drainage well for the Mateguafa area. The well is outside the estimated basin size but could become a production well if the basin extends beyond seismic interpretation. We look forward to providing further updates on the ongoing low-risk development of the Mataguafa Attic field.”
About Arrow Exploration Corp.
Arrow Exploration Corp. (operating in Colombia through an affiliate of its wholly owned subsidiary Carrao Energy SA) is a publicly traded company with a portfolio of prime Colombian oil assets that are underutilized, underdeveloped and offer high growth potential. The company’s business plan is to expand oil production from some of Colombia’s most active basins, including the Llanos, the Middle Magdalena Valley (MMV) and the Putumayo Basin. The asset base is mainly controlled by large holdings, and the exposure to Brent-related light oil pricing, combined with low royalties, provides attractive potential operating margins. Through a private commercial contract with recognized stakeholder Ecopetrol SA, Arrow is entitled to 50% of production from the Tapir block. The formal transfer to the Company is subject to Ecopetrol’s consent. Arrow’s seasoned team is led by a hands-on executive team, supported by an experienced board. Arrow is listed on the AIM market of the London Stock Exchange and on the TSX Venture Exchange under the symbol “AXL”.
Forward-Looking Statements
This press release contains certain statements or disclosures regarding Arrow that are based on management’s expectations, as well as assumptions made by and information currently available to Arrow, that may constitute forward-looking statements or information (“forward-looking statements”) under applicable securities laws. All such statements and disclosures, other than those of historical fact, that relate to activities, events, outcomes, results or developments that Arrow anticipates or expects may, could or will occur (in whole or in part) in the future should be considered forward-looking statements. In some cases, forward-looking statements can be identified by the use of the words “continue,” “expect,” “opportunity,” “plan,” “potential” and “will” and similar expressions. The forward-looking statements in this press release reflect various material factors, expectations and assumptions of Arrow, including but not limited to Arrow’s evaluation of the impact of COVID-19, the potential of Arrow’s Colombian and/or Canadian assets (or any of these individually), the prices of oil and/or natural gas, and Arrow’s business plan to expand oil and gas production and achieve attractive potential operating margins. Arrow believes that the expectations and assumptions reflected in the forward-looking statements are currently reasonable, but there can be no assurance that these factors, expectations and assumptions will prove to be correct.
The forward-looking statements in this press release are not guarantees of future performance and should not be unduly relied upon. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The forward-looking statements contained in this press release are made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Glossary
| API: | A specific gravity scale developed by the American Petroleum Institute (API) for measuring the relative density of various petroleum liquids, expressed in degrees. |
| BOPD: | barrels of oil per day |
| boo/d: | barrels of oil equivalent per day |
Statement from a qualified person
The technical information in this announcement has been reviewed and approved by Grant Carnie, senior non-executive director of Arrow Exploration Corp. Mr. Carnie was previously a member of the Canadian Society of Petroleum Geologists and holds a B.Sc. in Geology from the University of Alberta and has more than 35 years of experience in the oil and gas industry.
This announcement contains inside information under the UK version of the Market Abuse Regulation (EU No 596/2014) as it becomes part of the domestic law of the United Kingdom under the European Union (Withdrawal) Act 2018 (“UK MAR“).
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