Mr. Marshall Abbott reports

ARROW ANNOUNCES CN-1 WELL UPDATE

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

CN-1

The CN-1 well was spudded on May 1, 2023, and reached target depth on May 11, 2023. CN-1 targeted a three-way fault bounded structure with multiple high-quality reservoir objectives on the Tapir block in the Llanos basin of Colombia. The well was drilled to a total measured depth of 9,190 feet (8,511 feet true vertical depth) and encountered 148 feet of cumulative net oil pay (128 feet TVD).

Arrow has completed the first test on the CN-1 well in the Ubaque formation which has approximately 58 feet of net oil pay. The pay zone is a clean sandstone exhibiting consistent 30 per cent porosity and high resistivities. A submersible pump has been inserted in the well after perforating.

Specific data for the production test on the Ubaque formation were as follows:

• The production test was run over a 58-hour period.
• The well was tested at three different flow rates to evaluate productivity and to plan for water cut management. The first flow period was held for 23 hours and showed an average oil rate of 491 barrels of oil per day gross.
• The second flow period was for 18 hours and showed an average oil rate of 861 bopd gross.
• The third flow period was held for 17 hours and showed an average oil rate of 1,134 bopd.
• Oil production tested at a peak rate of 1,222 bopd and a final stabilized rate of 1,134 bopd.

In the final 24 hours of the test, CN-1 produced at a rate of 1,134 bopd gross (567 bopd net) of oil at 13.5 API (American Petroleum Institute) and with a 28.3 per cent water cut (completion fluid). Water cut has been decreasing throughout completion testing. Additional tests of the Gacheta and C7 formations will proceed over the coming weeks, with production forecast to commence in the second half of June, 2023. The Carrizales Norte-2 (CN-2) well will be drilled immediately upon the CN-1 well being brought on stream.

Initial production results are not necessarily indicative of long-term performance or ultimate recovery.

Marshall Abbott, chief executive officer of Arrow, commented:

"The Carrizales Norte-1 discovery and the Ubaque test are extremely important and material events for Arrow. The Ubaque test -- the first on the Carrizales Norte field -- shows that oil from the formation can be produced at high rates using conventional means. The test is further evidence of the potential of the Tapir block in the prolific Llanos basin.

"After a brief flow and pressure buildup on the Ubaque, Arrow plans to completion test additional pay zones in the Gacheta and C7 reservoirs over the coming weeks and then make a decision on which zone to bring on production initially.

"Our expectation is that the Carrizales Norte wells will be quick to pay out in the current oil price environment with triple digit IRRs [internal rate of returns], providing positive cash flow for the company. 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. By way of a private commercial contract with the recognized interest holder before Ecopetrol SA, Arrow is entitled to receive 50 per cent of the production from the Tapir block. The formal assignment to the company is subject to Ecopetrol's consent. Arrow's seasoned team is led by a hands-on executive team supported by an experienced board.

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 of experience in the oil and gas industry.

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