CALGARY - Arrow Exploration Corp. (AIM: AXL; TSXV: AXL) ('Arrow' or the 'Company'), the high-growth operator with a portfolio of assets across key Colombian hydrocarbon basins, is pleased to give an operations update and announce the results of its 2025 year-end reserves evaluation by Boury Global Energy Consultants Ltd. ('BouryGEC').
Operational Update
Current Drilling Schedule
The Mateguafa 11 (M-11) well has been drilled to a total measured depth of 11,455 MD feet (9,328 feet true vertical depth) and has encountered oil bearing sands in the C7 and C9 Carbonera formations. The well encountered 18 feet (TVD) of net pay in the C7 and 30 feet (TVD) of net pay in the C9. Management is planning to perforate these sands and initially produce from the C7. Expectations are that the well will be on production in the coming weeks. The M-11 well found the two zones structurally higher than any of the other Mateguafa Attic wells. The M-11 results have extended the Mateguafa Attic structure to the south where more development wells will be drilled in the future. Due to the continued success at Mateguafa, Arrow now plans to continue development on the Mateguafa Attic field with a horizontal well targeting the C9 formation (M-12Hz).M-12Hz is expected to spud by the end of March. Following M-12Hz, the rig will then move to the Icaco pad to drill the Icaco 1 (I-1) exploration well. Arrow continues discussions on the Tapir license extension with regulatory authorities. Management believes these discussions are positive and beneficial to all parties and that the extension will ultimately be awarded to Arrow and our partner.
2025 Reserve Overview
Arrow's 2025 reserves report shows steady performance with a significant amount of Arrow's produced volumes having been replaced by the Company's drilling campaign through the year. Importantly, BouryGEC reserves report's conservative oil price forecast (with current oil prices over 50% above its 2026 projection) has a significant effect on both valuation calculations and the viability of reserves classification. When reviewing the 2025 reserve report it is important to understand the assumptions used by the reserve engineers when producing it. In particular, the 1P reserves have been prepared assuming the Tapir block expires with the contract in February 2028. The 2P reserves assume the first 5-year extension period embedded in the Tapir contract is granted. The 3P reserves assume the second 5-year extension period embedded in the Tapir contract is granted. Management continues to work with the regulators and believes that the extensions will be granted to the partnership. Discovery and successful development at Mateguafa Attic continues to provide both production and reserve growth to the Company and the vertical and horizontal well development at Mateguafa Attic will be reflected in future reserve reports. The BouryGEC reserves evaluation reinforces the significant value Arrow has generated in its Colombian assets and the Company remains enthused by the further potential value in its prospect portfolio.
Marshall Abbott, CEO of Arrow, commented: 'Looking out to the remainder of 2026, Arrow's prospect inventory is multifaceted and demonstrates the hydrocarbon density of the Tapir block in the fertile Llanos Basin. Over the rest of the year, we look forward to a successful drilling campaign that is balanced between development and low risk exploratory wells.'
2025 Year-End Reserves Detailed Summary
Management has presented below a summary of Arrow's reserves as at December 31, 2025, on a working interest gross reserves basis, which have been estimated by BouryGEC, an independent qualified reserves evaluator, in a reserves report with an effective date of December 31, 2025. In addition to the summary information disclosed in this announcement, more detailed information will be included in Arrow's annual reserves evaluation for the year ended December 31, 2025 to be filed on SEDAR (www.sedar.com) and posted on Arrow's website (www.arrowexploration.ca). After tax values have been calculated without taking into account the tax shelter created by capital spending on projects that do not have reserve values associated with them, such as the Tapir 3D seismic project, drilling at Carrizales Norte and annual G&A. Spending on these projects will provide a tax shelter and result in a reduction in future income tax payments.
Cautionary Statement
The recovery, reserve estimates and future net revenue provided in this news release are estimates only, and there is no guarantee that the estimated reserves will be recovered nor represent fair market value. Actual reserves may eventually prove to be greater than, or less than, the estimates provided herein. This press release contains various references to the abbreviation 'BOE' which means barrels of oil equivalent. Where amounts are expressed on a BOE basis, natural gas volumes have been converted to oil equivalence at six thousand cubic feet (Mcf) per barrel (bbl). The term BOE may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. This Announcement contains inside information for the purposes of the UK version of the market abuse regulation (EU No. 596/2014) as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018 ('UK MAR').
Contact:
Marshall Abbott
Tel: +1 403 651 5995
Joe McFarlane
Tel: +1 403 818 1033
About Arrow Exploration Corp.
Arrow Exploration Corp. (operating in Colombia via a branch of its 100% owned subsidiary Carrao Energy S.A.) is a publicly traded company with a portfolio of premier Colombian oil assets that are underexploited, under-explored and offer high potential growth. The Company's business plan is to expand oil production from some of Colombia's most active basins, including the Llanos, Middle Magdalena Valley (MMV) and Putumayo Basin. The asset base is predominantly operated with high working interests, and the Brent linked light oil pricing exposure combines with low royalties to yield attractive potential operating margins. By way of a private commercial contract with the recognized interest holder before Ecopetrol S.A., Arrow is entitled to receive 50% of the production from the Tapir block. The formal assignment 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 TSX Venture Exchange under the symbol 'AXL'.
Forward-looking Statements
This news release contains certain statements or disclosures relating to Arrow that are based on the expectations of its management as well as assumptions made by and information currently available to Arrow which 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, which address activities, events, outcomes, results or developments that Arrow anticipates or expects may, could or will occur in the future (in whole or in part) 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 contained in this news release reflect several material factors and expectations and assumptions of Arrow, including without limitation, Arrow's evaluation of the impacts of COVID-19, the potential of Arrow's Colombian and/or Canadian assets (or any of them 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 the expectations and assumptions reflected in the forward looking statements are reasonable at this time but no assurance can be given that these factors, expectations and assumptions will prove to be correct. The forward-looking statements included in this news 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 news release are made as of the date hereof and the Company undertakes no obligations to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
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