Mr. Marshall Abbott reports

ARROW EXPLORATION 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 where Arrow holds a 50-per-cent beneficial interest.

CN-1

Further to the company's announcement on May 30, 2023, the company has commenced completion operations at CN-1 and management expects to proceed with putting the C7A and C7 zones straight on production during the course of next week. The C7 reservoirs were the primary target of CN-1 and displayed excellent reservoir characteristics.

After a very successful test of the 45-foot-thick Ubaque pay zone, where stabilized rates exceeded 1,100 barrels of oil per day gross, the Gacheta zones were tested and proved unproductive at this location. Management is investigating potential reasons for the lack of productivity and plans to re-evaluate these Gacheta zones in future wells. Meanwhile the company is proceeding with completion of the C7 and C7A zones. Preliminary interpretation of the CN-1 discovery suggests aggregate reserve capture materially exceeds initial expectations.

Management's experience with the C7A and C7 zones at Rio Cravo Este (RCE) indicates CN-1 will produce in a similar fashion to the wells at RCE where production rates have exceeded 1,000 bopd gross. Initial production results are not necessarily indicative of long-term performance or ultimate recovery.

Immediately following the CN-1 well being put on production, the rig will move over to spud the Carrizales Norte-2 (CN-2) well. Spud to target depth time (10 to 12 days) has decreased through the company's drilling program and costs have come in consistently under budget.

Marshall Abbott, chief executive officer of Arrow, commented:

"The Carrizales Norte-1 discovery in both the C7 and Ubaque reservoirs are extremely important and material events for Arrow with both the C7 and Ubaque reservoirs exceeding expectations. These results expand and accelerate the Carrizales Norte development plan beyond three wells. As well, Arrow is planning to complete a new reserve report once the Carrizales Norte 2 and 3 wells have been completed.

"Our expectation is that the Carrizales Norte wells will be quick to payout in the current oil price environment and add to shareholder value. 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. 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 of experience in the oil and gas industry.

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