Arrow Exploration, the high-growth operator with a portfolio of assets across key Colombian hydrocarbon basins, has provided an operations update and announced the results of its 2025 year-end reserves evaluation by Boury Global Energy Consultants ('BouryGEC').
All reserves volume figures stated below are on a Working Interest Gross Reserve basis. Currency amounts are in United States dollars (unless otherwise indicated) and comparisons refer to December 31, 2024.
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.
Production
Corporate production is approximately 5,325 boe/d. Arrow expects additional production from the M-11 well which is expected to come online in the coming weeks.
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Arrow's 2025 reserves report shows steady performance with a significant amount of Arrow's produced volumes having been replaced by the Company's drilling campaign through the year.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.'
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Source: Arrow Exploration
