The following summarizes operational progress by Arrow Exploration in Colombia, focusing on the Mateguafa Attic area of the Tapir Block where the company holds a 50% beneficial interest. This update covers recent drilling milestones, production data, near-term programs and the company’s financial position, providing context for stakeholders tracking activity across the Llanos Basin.
Arrow’s appraisal program at Mateguafa has advanced with the Mateguafa H-Z12 well (M-HZ12) and the initiation of an exploration program at Icaco. The operating team reports that the Icaco 1 (A-1) exploration well was spud on May 5, 2026, and that successful results there would trigger a development plan at that location. These operational steps are paired with a planned program of recompletions and workovers on the Tapir Block to enhance recoveries from existing wells.
Table of Contents:
M-HZ12 appraisal: drilling and completion
The M-HZ12 well was spud on March 27, 2026 and reached target depth on April 7, 2026, being drilled to a total measured depth of 13,824 feet (approximately 8,455 feet true vertical depth). Drilling was completed on schedule and below the budgeted cost, and the well encountered multiple hydrocarbon-bearing intervals across the Carbonera sequence. These results support Arrow’s view of the lateral extent of the Mateguafa accumulation within the Carbonera formations.
Reservoir and completion details
The operator placed M-HZ12 on production from the Carbonera C9 zone on April 16, 2026. At that horizon the well logged about 30 feet of net oil pay, with an average porosity near 24% and high resistivity signatures consistent with hydrocarbon saturation. Completion included perforation and installation of an electric submersible pump (ESP). During cleanup the well reached a peak measured rate of 668 BOPD gross (334 BOPD net), and is currently producing at a restricted rate of roughly 564 BOPD gross (282 BOPD net) on a 33/128 choke and 36 Hz pump setting. Oil quality is reported at 32° API and the producer has a reported 60% water cut attributed to completion fluid and formation water. The appraisal also intercepted about 15 feet of net oil pay in the shallow Carbonera C7 interval. Current short-term tests suggest the well can deliver higher flow rates, although initial rates are not a guarantee of long-term performance.
Mateguafa pad production and corporate output
The Mateguafa pad now hosts several producing wells contributing to aggregate output. Current reported production per well includes: M-HZ12 ~564 gross / 282 net BOPD with 60% water cut (C9); M-11 ~460 gross / 230 net BOPD, 50% water cut (C7); M-10 ~336 gross / 168 net BOPD, 67% water cut (C7); M-HZ9 ~948 gross / 474 net BOPD, 64% water cut (C9); M-HZ7 ~1,850 gross / 925 net BOPD, 49% water cut (C9); M-6 ~236 gross / 118 net BOPD, 56% water cut (C7); and M-5 ~366 gross / 183 net BOPD, 87% water cut (C9). At present corporate gross production including M-HZ12‘s restricted rates is approximately 5,000 boe/d. The CN-HZ12 well remains offline awaiting a planned workover; it was producing near 330 BOPD gross (165 BOPD net) before being shut in. Arrow has also temporarily shut in the Pepper gas field in Alberta due to low gas prices; that asset was contributing about 130 boe/d when taken offline.
Near-term drilling and recompletion activity
The operating rig has moved to the Icaco pad to drill the A-1 exploration well, with any commercial discovery to be followed by a development program. Separately, Arrow is contracting a workover rig to perform a series of recompletions across the Tapir Block, with activity anticipated to start late in the second quarter. These programs are designed to maximize recovery from identified pay and to unlock additional deliverability across operated acreage.
Markets, balance sheet and regulatory status
Commodity realizations for Arrow’s oil averaged approximately $87 US/barrel in March 2026 and $90 US/barrel in April 2026, reflecting higher Brent pricing which averaged $103.13 and $103.91 for March and April respectively. Field receipts reflect deductions such as the Vasconia differential and logistics charges. On May 1, 2026 Arrow reported a cash balance of US$24.2 million and continued to carry no debt, which management says provides flexibility for both organic growth and accretive acquisitions. Discussions with regulators on a possible extension to the Tapir block remain constructive; Arrow expects activity on the extension application to resume following the completion of the Colombian federal election process.
Governance, approvals and cautionary notes
The technical content in this update has been reviewed and approved by Grant Carnie, senior non-executive director of Arrow, who holds a B.Sc. in Geology and brings over 35 years of industry experience. Management highlights that future-oriented statements in this release reflect assumptions and expectations and are subject to risks and uncertainties that could cause actual outcomes to differ. Certain information in this announcement is regulated as inside information under applicable market rules, and distribution is restricted in specific jurisdictions.