Mr. Marshall Abbott reports

ARROW PROVIDES RCE-6 UPDATE AND OPERATIONS UPDATE

Arrow Exploration Corp. has provided an update on the Rio Cravo Este-6 (RCE-6) well on the Tapir block in the Llanos basin of Colombia where Arrow holds a 50-per-cent beneficial interest and the Oso Pardo-3 well on the Oso Pardo field in the Middle Magdalena Valley basin of Colombia where Arrow has a 100-per-cent working interest.

RCE-6

The company has completed the RCE-6 well in the Carbonera C7 formation and the well has been put into production. The well penetrated a 16-foot pay zone in a high-quality upper Carbonera C7 sand, with a porosity of 27 per cent. The well is currently flowing, with the ESP turned off, at 834 BOPD (barrels of oil per day) gross (417 BOPD net) of 29.8 API gravity. As reservoir stewards, the company will conservatively produce at rates that allow for maximum oil recoveries and optimal production rates.

After penetrating the Carbonera C7, the RCE-6 well continued drilling and encountered pay in the Ubaque formation. In the Ubaque formation, the well penetrated seven feet of high-quality pay, with an estimated porosity of 24 per cent. The Ubaque zone was tested for 78 hours and reached a production rate of 393 BOPD gross (197 BOPD net) of heavy crude oil of 13.3 degrees API with a water cut of less than 10 per cent. The Ubaque formation was shut in after the test and the well was completed in the Carbonera C7 formation. The Ubaque discovery in RCE-6 is expected to add reserves and future production to Arrow.

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

The Gacheta formation was not tested in the RCE-6 well.

Tapir forward work program

The Rio Cravo Este-7 well (RCE-7) was spudded on Nov. 14. This development well is targeting the multizone pay stack within the RCE fault bounded structure. As well, upon RCE-7 being placed on stream, the RCE 8 development well will be drilled to further evaluate the multizone potential that has evolved from the RCE structure.

The drilling rig is then expected to return to the Carrizales Norte field (CN) to begin a multiwell program. Priority vertical locations will focus on exploitation of the material Ubaque discovery. Upon completion of the dedicated horizontal well pad, a series of horizontal wells will be drilled with a second rig to efficiently exploit the Ubaque reservoir. Pad completion is expected in Q1 2024. The existing Carrizales Norte vertical pad will focus on testing the Carrizales Nor Oeste prospect directly adjacent to the Ubaque discovery. Horizontal drilling is expected to commence in late Q1 2024 once the pad is ready. As previously disclosed, the Ubaque Sand reservoir is 60 feet thick over a large area and is tailor made for horizontal well exploitation.

Oso Pardo-3

The Oso Pardo-3 (OP-3) well was spudded on Oct. 27 and has reached TD in the Umir formation. The well penetrated multiple pay zones totalling 53 feet of net pay in high-quality sands, with an average porosity of 23 per cent. Initial 3-D (three-dimensional) seismic and log interpretation indicates OP-3 has proven up additional locations within the existing 100-per-cent-owned Oso Pardo block.

OP-3 is currently being completed and the company plans to give further updates once this well is put on production in the next couple of weeks.

The company plans to drill a second well, Oso Pardo-4, once the Oso Pardo-3 well is on production.

Marshall Abbott, chief executive officer of Arrow, commented:

"The RCE-6 test results in both the Ubaque formation and Carbonera are material and exciting for the company. The results demonstrate that the Carbonera remains a solid high-volume producer while the Ubaque formation has proven production that extends beyond the Carrizales Norte complex. Multiple development locations are anticipated based on current results, including horizontal drilling in the Ubaque reservoir in the Carrizales Norte field. 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 have four additional development wells on production before the end of 2023. We are also encouraged by the 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, 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.

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