Mr. Marshall Abbott reports

ARROW PROVIDES CN-3 PRODUCTION AND PRODUCTION UPDATE

Arrow Exploration Corp. has provided an update on the Carrizales Norte-3 (CN-3) well on the Tapir block in the Llanos basin of Colombia, where Arrow holds a 50-per-cent beneficial interest.

CN-3

The company has completed the previously announced testing of the Carbonera C7 formation in the CN-3 well and the well has been put into production. The well penetrated a 23-foot pay zone in a high-quality upper C7 sand, with an estimated porosity of 25 per cent. An electric submersible pump (ESP) has been inserted and the well was initially producing at an average rate of 1,149 barrels of oil per day gross (575 barrels of oil per day net) of light crude oil of 33-degree API with a water cut of less than 0.5 per cent over a 22-hour period. To efficiently manage the reservoir and prevent premature water breakthrough, the ESP has been shut off and the well is naturally flowing. A 23/128ths-inch choke is being used to ease production back to a target of 640 barrels of oil per day gross (320 barrels of oil per day net). The company maintains the optionality to increase production once the well has stabilized.

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

The Gacheta formation was not tested in the CN-3 well. Management plans to test the Gacheta formation at Carrizales Norte in future wells.

Forward work program

The rig has commenced mobilization to the Rio Cravo Este (RCE) field, where Arrow plans to further exploit the multizone RCE structure with two dedicated Gacheta wells and a follow-up to the RCE-6 C7 producer. The drilling rig is then expected to return to the Carrizales Norte (CN) field to begin a multiple-horizontal-well project. Management plan to target the proven Ubaque formation at CN with six horizontal wells. Plans are to spud the first horizontal well in early 2024.

Production update

Field operations and production continue to improve. Current production, including CN-3, is between 2,800 and 3,000 barrels of oil equivalent per day net. Capella production, approximately 280 barrels of oil per day, remains shut in, waiting on government and operator meetings with communities in the area. Two wells at the Oso Pardo field, approximately 80 barrels of oil per day in aggregate, are shut in waiting routine maintenance. To minimize capital requirements, management will use the same rig to conduct this maintenance program and for drilling operations on Oso Pardo 3 and 4. The rig is expected to arrive at the Oso Pardo field in mid-October.

Marshall Abbott, chief executive officer of Arrow, commented: "The CN-3 testing results of the C7 formation have confirmed that the Carrizales Norte field is transformational for the company. Multiple development locations are anticipated based on current results, including horizontal drilling in the Ubaque reservoir. Horizontal wells typically produce at higher rates, increasing recovery and the economics of heavy oil fields."

"Arrow's fully funded, low-risk drilling program continues to build momentum across our extensive portfolio, where we aim to spud five additional development wells between now and year-end. We are also encouraged by the initial interpretation of the Tapir 3-D seismic and look forward to providing further updates in due course."

About Arrow Exploration Corp.

Arrow Exploration (operating in Colombia through 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 and 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 basins. 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 AIM (Alternative Investment Market) of the London Stock Exchange and on the TSX Venture Exchange under the symbol AXL.

Qualified person 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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