Arrow Announces Record Production and IC-8, IC-7 Well Results

Arrow hits record 6,500 boe/d production and holds over US$28 million cash.

What the company is saying

Arrow Exploration Corp. is highlighting a record corporate production rate of over 6,500 boe/d, attributing this to recent drilling successes at the Icaco field on the Tapir Block in Colombia, where it holds a 50% beneficial interest. The company emphasizes its strong estimated cash balance of over US$28 million as of October 1, 2026, and frames its operational momentum as a function of both technical execution and favorable oil prices. Detailed well-level results are presented for the Icaco 8-ST-1 and Icaco 7 wells, including spud and completion dates, depths, net pay by formation, and current production rates. The announcement also notes the completion of the first horizontal well in the Carbonera reservoir (Icaco HZ9), with 950 feet of horizontal oil pay, and ongoing drilling infrastructure buildout with 16 well cellars at Icaco. Management, led by CEO Marshall Abbott, uses confident language to link operational results to a strengthened balance sheet and expresses optimism about continued production growth and regulatory engagement. The company references constructive discussions with Colombian regulators and a pro-business government following the recent Presidential election, but provides no quantifiable progress on the Tapir extension.

What the data suggests

The disclosed figures show Arrow has achieved a new record in total corporate production, now exceeding 6,500 boe/d, driven by the addition of the Icaco 8 and Icaco 7 wells. As of October 1, 2026, the company holds an estimated cash balance of over US$28 million, indicating strong liquidity. The Icaco 8-ST-1 well, spud on September 21 and completed by October 3, reached 11,000 feet measured depth and is producing 1,204 BOPD gross (602 BOPD net) from the Carbonera C7 formation, with a 33% water cut and 28.2° API oil. The Icaco 7 well, spud September 1 and completed September 7 at 13,000 feet measured depth, is producing 248 BOPD gross (124 BOPD net) from the Ubaque formation, with a 31% water cut and 13.2° API oil. The new horizontal well, Icaco HZ9, completed drilling on October 20 and has 950 feet of horizontal oil pay, but no production figures are yet disclosed. Arrow has built 16 well cellars at Icaco and continues multi-zone drilling. The company’s operational disclosures are detailed and current, but no profitability or cost metrics are provided, and there is no period-over-period production or cash comparison. Regulatory progress on the Tapir extension is referenced but not quantified.

Analysis

The announcement is highly factual, providing realised, well-supported operational and financial data: current production rates, well-level technical details, and a specific cash balance as of October 1, 2026. The majority of claims are realised and measurable, with only a minor portion (regulatory discussions and future drilling) being forward-looking. There is no evidence of exaggerated or promotional language; the tone is positive but proportionate to the disclosed results. No large capital outlay is paired with long-dated or uncertain returns—drilling and production are already underway, and benefits are being realised immediately. The only minor gap is the absence of profitability metrics (net income, EBITDA, etc.), which limits the signal to weak_positive per the Disclosure Completeness Rule, but this is not a narrative inflation issue. The data fully supports the operational progress described.

Risk flags

• ●Water cuts of 33% in IC-8 and 31% in IC-7 indicate a significant proportion of produced fluids is water, which could impact operating costs and long-term well performance if not managed effectively.
• ●No profitability, cost, or margin figures are disclosed, limiting visibility into whether record production is translating into sustainable free cash flow or earnings.
• ●The Tapir extension remains subject to regulatory approval and ongoing discussions, introducing uncertainty about Arrow’s ability to expand operations or formalise its beneficial interest beyond the current arrangement.
• ●Production rates for the new horizontal well (Icaco HZ9) are not yet disclosed, so its actual contribution to future output and cash flow is unknown.
• ●The company’s operational success is partly attributed to high oil prices, which are outside management’s control and could reverse, impacting netbacks and cash generation.

Bottom line

Arrow Exploration Corp. has delivered a clear operational and financial milestone, with production now above 6,500 boe/d and a cash balance exceeding US$28 million. The technical results from recent wells are strong, but high water cuts and the absence of cost or profit data mean investors cannot yet assess the true economic impact. Regulatory progress on the Tapir extension is referenced but remains unquantified, and the productivity of the new horizontal well is still to be proven. The company’s narrative is credible given the realised production gains, but future updates should include profitability metrics and concrete regulatory outcomes to fully validate the growth story. The most important takeaway is that Arrow is executing on near-term drilling and production, but the sustainability and scalability of these results will depend on both regulatory outcomes and future well performance.

Announcement summary

(AIM:AXL) (TSXV:AXL) Arrow Exploration Corp. provided an operational update on the Icaco field, located on the Tapir Block in the Llanos Basin of Colombia, where Arrow holds a 50 percent beneficial interest. As of the announcement, Arrow's total corporate production is over 6,500 boe/d, which is a record high for the company and includes output from the Icaco 8 (IC-8) and Icaco 7 (IC-7) wells. The company's estimated cash balance as of October 1, 2026, is over US$28 million. The Icaco 8-ST-1 well was spud on September 21, 2026, and reached total depth on October 3, 2026, drilling to a measured depth of 11,000 feet (7,384 feet total vertical depth). IC-8-ST-1 encountered 72 feet MD (23 feet TVD) of net pay in the Carbonera C7 formation, 20 feet MD (6 feet TVD) in the Guadalupe Formation, 30 feet MD (10 feet TVD) in the Lower Gacheta, and 85 feet MD (30 feet TVD) in the Ubaque formation. The IC-8 well began production on October 12, 2026, and is currently producing from the Carbonera C7 formation at a restricted rate of approximately 1,204 BOPD gross (602 BOPD net), with a 27/128 choke and 32 Hz pump frequency, 28.2° API oil quality, and a 33% water cut. The Icaco 7 well was spud on September 1, 2026, and reached total depth on September 7, 2026, at a measured depth of 13,000 feet (7,347 feet total depth). IC-7 encountered 86 feet MD (15 feet TVD) of net pay in the Carbonera C7 and 256 feet MD (57 feet TVD) in the Ubaque formation. IC-7 began production on September 20, 2026, and is currently producing from the Ubaque formation at a restricted rate of approximately 248 BOPD gross (124 BOPD net), with a 20/128 choke and 44 Hz pump frequency, 13.2° API oil quality, and a 31% water cut. The Icaco HZ9 (IC-HZ9) horizontal well was spud on October 13, 2026, and completed drilling on October 20, 2026, targeting the Carbonera C7 formation, and appears to have 950 feet of horizontal oil pay (measured depth). Arrow continues discussions with regulatory bodies regarding the Tapir extension and notes the recent Presidential election in Colombia has resulted in a pro-business government. Arrow has built 16 well cellars at Icaco and continues to drill Carbonera C7, Gacheta, and Ubaque wells on the Icaco pad. The company attributes its production growth and strong balance sheet to operational success and high oil prices. Marshall Abbott is CEO of Arrow Exploration Corp. Joe McFarlane is CFO. The technical information in the announcement was reviewed and approved by Nilanjan Ganguly, Chief Geophysicist.

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