Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF) told investors that its Mateguafa 11 well is set to add fresh production within weeks after hitting oil-bearing sands in two Carbonera formations.
The well was drilled to 11,455 feet measured depth and found 18 feet of net pay in the C7 formation and 30 feet in C9.
Arrow plans to perforate both zones and initially produce from C7. It said the result also extends the Mateguafa Attic structure to the south, supporting more development drilling. The next well, M-12Hz, is a horizontal C9 target expected to spud by the end of March, before the rig moves to the Icaco 1 exploration prospect.
"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," said chief executive Marshall Abbott.
"Over the rest of the year, we look forward to a successful drilling campaign that is balanced between development and low-risk exploratory wells."
Meanwhile, Arrow also detailled it year-end reserves report (for 2025), which showed lower 1P and 2P volumes under conservative pricing and licence assumptions.
It added that group production is currently measured at around 5,325 barrels of oil equivalent per day, with additional volumes expected once M-11 comes onstream.
Arrow also said discussions over an extension to the Tapir licence remain positive, with management expecting the extension to be awarded.
On reserves, Arrow reported 2025 total proved reserves of 5,415 Mboe, down 7% from 2024, while proved plus probable reserves fell 14% to 11,775 Mboe. Before-tax 2P NPV10 slipped to US$244.5 million from US$284.9 million, although after-tax 2P NPV10 was nearly unchanged at US$160.0 million.
The company said the reserve report presently assumes the Tapir block expires in February 2028 for 1P reserves, while 2P and 3P cases assume successive five-year extensions are granted.