Mr. Marshall Abbott reports

ARROW ANNOUNCES REACHING TARGET DEPTH ON THE CN-1 WELL

Arrow Exploration Corp. has provided an update on the drilling of Carrizales Norte 1 (CN-1), an exploration well on the Tapir block in the Llanos basin of Colombia.

CN-1 update

The CN-1 well was spudded on May 1, 2023, and reached total depth on May 11, 2023. The well was drilled to a total measured depth of 9,190 feet (8,511 feet true vertical depth) and encountered approximately 148 feet of net oil pay measured depth (128 feet TVD).

The hydrocarbon-bearing intervals are as follows:

• 26 feet of net pay in Carbonera C7 sands. High-quality reservoir characteristics are similar to what was encountered in the highly productive Rio Cravo Este (RCE) series of wells;
• 64 feet of net oil pay within the Gacheta formation. Pay sands exhibit excellent reservoir characteristics with oil shows and strong hydrocarbon chromatograph response;
• 58 feet net oil pay within the Ubaque formation. The main pay zone is a very clean, thick and continuous sandstone with excellent reservoir characteristics.

Interval thicknesses are not necessarily indicative of long-term performance or ultimate recovery.

A testing and completion program is under review. Testing will likely begin with the deeper Ubaque, followed by the Gacheta and then the highly porous and permeable C7 reservoirs. Tests will be conducted over the following weeks, with production forecast to commence in early June, 2023. The Carrizales Norte-2 (CN-2) well will be drilled immediately upon completion of CN-1.

Marshall Abbott, chief executive officer of Arrow, commented:

"The CN-1 discovery is an extremely important and material event for Arrow and is further evidence of the potential of the Tapir block. All primary targets in the well have clear indications of oil pay and have the potential to greatly increase the company's reserves and production. Currently there are no reserves booked at the Carrizales Norte field. Apart from the exceptional technical results, the CN-1 well was drilled on time and under budget. Arrow plans to test several zones over the following weeks and then make a decision on which zone to bring on production.

"Our expectation is that the CN wells will behave in a similar manner to the RCE wells, quick to payout with triple-digit IRRs [internal rate of return], providing positive cash flow for the company during a high commodity price environment. This is a very exciting time for Arrow, and we look forward to providing further updates on our progress."

About Arrow Exploration Corp.

Arrow Exploration (operating in Colombia via a branch of its 100-per-cent-owned subsidiary Carrao Energy SA) is a publicly traded company with a portfolio of premier Colombian oil assets that are underexploited, underexplored and offer high potential growth. The company's business plan is to expand oil production from some of Colombia's most active basins, including the Llanos, Middle Magdalena Valley (MMV) and Putumayo basin. The asset base is predominantly operated with high working interests, and the Brent-linked light oil pricing exposure combines with low royalties to yield attractive potential operating margins. Arrow's 50-per-cent interest in the Tapir block is contingent on the assignment by Ecopetrol SA of such interest to Arrow. Arrow's seasoned team is led by a hands-on executive team supported by an experienced board. Arrow is listed on the Alternative Investment Market of the London Stock Exchange and on TSX Venture Exchange under the symbol AXL.

Qualified person's statement

The technical information contained in this announcement has been reviewed and approved by Grant Carnie, senior non-executive director of Arrow Exploration. Mr. Carnie is a member of the Canadian Society of Petroleum Engineers, holds a BSc in geology from the University of Alberta, and has over 35 years experience in the oil and gas industry.

This announcement contains inside information for the purposes of the U.K. version of the market abuse regulation (EU No. 596/2014) as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018.

We seek Safe Harbor.