Mr. Marshall Abbott reports

ARROW ANNOUNCES Q3 2023 INTERIM RESULTS

Arrow Exploration Corp. has filed its interim condensed (unaudited) consolidated financial statements and management's discussion and analysis (MD&A) for the three and nine months ended Sept. 30, 2023, which are available on SEDAR and will also be available shortly on Arrow's website.

Q3 2023 Highlights:

Recorded $13.9 million of total oil and natural gas revenue, net of royalties, almost double compared to the same period in 2022 (Q3 2022: $7.6 million).

Net income of $7.1 million and adjusted EBITDA(1) of $9.8 million, more than double compared to 2022 (Q3 2022: $2 million and $4.6 million, respectively).

Average corporate production up 68% to 2,518 boe/d (Q3 2022: 1,503 boe/d).

Realized corporate oil operating netbacks(1) of $52.67/bbl. Q3 operating costs were slightly higher than Q2 due to higher start-up costs at the Carrizales Norte discovery.

Cash position of $12.8 million at the end of Q3 2023.

Generated positive operating cashflows of $6.5 million (Q3 2022: $5.2 million).

Successfully drilled the Carrizales Norte-2 (CN-2) and Carrizales Norte-3 (CN-3) wells at the Tapir block, resulting in additional production and reserves additions.

Significant increase in reserves from the Carrizales Norte discovery (CN), adding more than 3.92 MMbbls of 2P reserves.

(1)Non-IFRS measures - see "Non-IFRS Measures" section

Post Period End Highlights:

The Rio Cravo Este-6 well (RCE-6) has been drilled and is currently producing from the Carbonera C7 formation.

The Oso Pardo-3 well (OP-3) has been drilled and is currently undergoing production testing.

RCE-7 has reached target depth and is currently being tested. Once on production, the drilling rig will move to RCE-8 which is expected to be on production before year end.

Oso Pardo-4 (OP-4) has been spud and is currently drilling. It is expected to reach target depth this week.

In October and November 2023, the Company issued 40,338,307 common shares related to the exercise of warrants, raising cash proceeds of $4.5 million. At November 1, the Company held $18.5 million cash as a result of the warrant exercise and operating cash flow. The Company has no further warrants outstanding.

The Supreme Court of Colombia ruled that royalties are tax deductible. Courts are considering other possible changes to tax regulations which could have positive outcomes for the oil and gas industry.

Outlook:

Arrow anticipates drilling two additional wells at Rio Cravo Este (RCE) by year-end.

Arrow plans to drill another development well on the Oso Pardo Block in the Middle Magdalena Basin.

The preliminary development plan at CN consists of 21 wells, the majority focusing on the Ubaque formation, to fully exploit the thick reservoir. The reservoir pay zone is consistently thick (100 feet) across the fault bounded structure. C7 and Gacheta targeted wells will also be part of the overall development plan at CN.

In 2024 the Company plans to have a $40 million capital program including 15 wells. The majority of drilling will be focused on the Carrizales Norte discovery and will include three horizontal wells. Low risk step-out and exploration wells are also planned at the Mateguafa Attic and Baquiano prospects. The 2024 capital program will be self-funded by a combination of cash flow from operations and cash reserves.

Marshall Abbott, CEO of Arrow Exploration Corp., commented:

"Arrow continues to grow, recording its strongest quarter to date. The 2023 drilling program, including the CN discovery, added significant production and reserves to the Company and established a new core area. Additional low risk prospects have been identified using our recently acquired 3D seismic data. The Company plans to increase operational tempo in aggressively developing the Carrizale, Ubaque and C7 discoveries while simultaneously drilling low risk exploration wells along proven fault fairways. The Board remains confident in the Arrow team to execute on an aggressive exploitation campaign pursuing our opportunity rich portfolio and getting shareholder value to the next level."

DISCUSSION OF OPERATING RESULTS

The Company increased its production from new wells at CN which allowed the Company to continue to improve its operating results and EBITDA. There has been a decrease in the Company's natural gas production in Canada due to natural declines.

For the three months ended September 30, 2023, the Company's average production was 2,518 boe/d, which consisted of crude oil production in Colombia of 2,178 bbl/d, natural gas production of 2,012 Mcf/d and minor amounts of natural gas liquids from the Company's Canadian properties. The Company's Q3 2023 total production was 68% higher than its total production for the same period in 2022.

DISCUSSION OF FINANCIAL RESULTS

During Q3 2023 the Company continued to realize good oil prices, offset by lower gas prices, as summarized below:

OPERATING NETBACKS

The Company also continued to realize strong oil operating netbacks, as summarized below:

The operating netbacks of the Company remained healthy during 2023 due to several factors, principally the increase in production from its Colombian assets, even factoring in decreased crude oil prices. This was offset by decreases in natural gas prices and operating expenses for natural gas.

During the first nine months of 2023, the Company incurred in $16 million of capital expenditures, primarily in connection with the drilling of the three RCE and CN wells, civil works completed in Rio Cravo and shooting 125 km2 of 3D seismic in the Tapir block to highlight existing leads and prospects for drilling. This acceleration in operational tempo is expected to continue during the remainder of 2023 and into 2024, funded by cash on hand and cashflow.

For further Information, contact:

Arrow Exploration

Marshall Abbott, CEO+1 403 651 5995

Joe McFarlane, CFO+1 403 818 1033

Brookline Public Relations, Inc.

Shauna MacDonald+1 403 538 5645

Canaccord Genuity (Nominated Advisor and Joint Broker)

Henry Fitzgerald-O'ConnorJames AsensioGordon Hamilton+44 (0)20 7523 8000

Auctus Advisors (Joint Broker)

Jonathan WrightRupert Holdsworth Hunt+44 (0)7711 627449

Camarco (Financial PR)

Andrew TurnerRebecca WaterworthKirsty Duff+44 (0)20 3781 8331

About Arrow Exploration Corp.

Arrow Exploration Corp. (operating in Colombia via a branch of its 100% owned subsidiary Carrao Energy S.A.) is a publicly traded company with a portfolio of premier Colombian oil assets that are underexploited, under-explored 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 S.A., Arrow is entitled to receive 50% 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 market of the London Stock Exchange and on TSX Venture Exchange under the symbol "AXL".

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