Arrow Exploration Corp. (AIM: AXL, TSXV: AXL) has achieved record corporate production exceeding 6,500 barrels of oil equivalent per day, supported by successful drilling at its Icaco field in Colombia and continued growth across its producing assets.
The Colombia and Canada-focused oil and gas producer confirmed that total production has surpassed 6,500 boe/d for the first time, with new contributions from the Icaco-8 and Icaco-7 wells on the Tapir Block in Colombia’s Llanos Basin.
Arrow holds a 50% beneficial interest in the Tapir Block, where its latest drilling programme has identified multiple oil-bearing formations and delivered additional production.
The Icaco-8 well is currently producing 1,204 barrels of oil per day gross, equivalent to 602 barrels net to Arrow, from the Carbonera C7 formation.
The well commenced production on 12 October 2026 and is operating at a restricted rate while clean-up operations continue.
Drilling encountered several productive intervals, including 72 feet of measured net pay in the Carbonera C7 formation, alongside additional oil-bearing sections in the Guadalupe, Lower Gacheta and Ubaque formations.
The well is producing oil with a gravity of 28.2° API and currently has a 33% water cut, indicating that approximately one-third of the produced fluid is water.
Icaco-7 is producing 248 barrels of oil per day gross, or 124 barrels net to Arrow, following the commencement of production on 20 September.
The well is producing from the Ubaque formation, with oil gravity of 13.2° API and a reported water cut of 31%.
Drilling at Icaco-7 identified 256 feet of measured net pay in the Ubaque formation, alongside 86 feet in the Carbonera C7 reservoir.
Both wells remain on restricted production settings, with future output dependent on reservoir performance and ongoing operational adjustments.
Arrow has also completed drilling its Icaco HZ9 horizontal well, which was spudded on 13 October and finished drilling on 20 October.
The well represents the first horizontal well targeting the Carbonera C7 reservoir on the Tapir Block, with preliminary results indicating approximately 950 feet of horizontal oil pay.
The company will now assess the well’s production potential as it advances its drilling and development programme.
Arrow’s estimated cash balance exceeded US$28 million as of 1 October 2026, reflecting its financial position as production continues to expand.
Management said the stronger oil price environment is supporting operating cash generation and improving netbacks, providing additional financial resources for drilling and development.
The company has constructed 16 well cellars at Icaco, supporting plans for continued drilling across the Carbonera C7, Gacheta and Ubaque formations.
Arrow is also progressing discussions with Colombian regulatory authorities regarding an extension of its Tapir Block interests, although no final agreement has been announced.
Chief Executive Marshall Abbott welcomed the record production milestone, highlighting that the Icaco discovery has exceeded initial expectations in both reservoir quality and production performance.
He said the presence of multiple productive formations provides opportunities for further drilling, while stronger oil prices are contributing positively to the company’s balance sheet.
For investors, the record production rate above 6,500 boe/d represents a significant operational milestone, demonstrating the contribution of recent drilling successes to Arrow’s growing production base.
However, current well rates remain subject to operational restrictions and reservoir performance, while the newly drilled horizontal well has yet to establish a sustained production rate.
Attention will now turn to the performance of Icaco-8 and Icaco-7, initial production results from Icaco HZ9 and further drilling across the Tapir Block, as Arrow seeks to maintain production growth and strengthen cash generation.
