Mr. Marshall Abbott reports

ARROW ANNOUNCES OPERATIONAL UPDATE

Arrow Exploration Corp. has provided an update on recent operational activity on the Tapir block in the Llanos basin of Colombia, where Arrow holds a 50-per-cent beneficial interest.

Highlights:

• Four wells brought on production so far in H2 2025:
  • AB-3 vertical well recompletion brought on production on Sept. 5, 2025, and currently producing 840 barrels of oil per day gross (420 bopd net);
  • CN HZ13 brought on production on Aug. 28, 2025, and currently producing 1,002 bopd gross (501 bopd net);
  • CN HZ12 brought on production on Aug. 5, 2025, and currently producing 532 bopd gross (266 bopd net);
  • RCE HZ10 brought on production on July 16, 2025, and currently producing 200 bopd gross (100 bopd net);
• Strong balance sheet, no debt or drilling commitments. Arrow has flexibility in its work program, with multiple drill ready pads, and is actively exploring potential acquisition opportunities.

Production

Total corporate production is currently over 4,800 barrels of oil equivalent per day net reflecting contributions from wells that have recently been brought on production from the RCE, AB and CN pads.

Additional production is expected to be added during the third and fourth quarters as Arrow focuses on low-risk exploration activity, which has the potential to increase Arrow's reserves base and build up drilling inventory. During Q2, the company invested significantly in water disposal infrastructure, with Tapir block water disposal capability now over 130,000 barrels of water per day, further enabling the company to increase production.

Drilling operations -- Tapir block

Carrizales Norte field

On the Carrizales Norte field, the company has recently drilled two development wells from the CN pad.

The Carrizales Norte HZ12 (CN HZ12) well was spudded on July 18, 2025, and reached target depth on Aug. 2, 2025. CN HZ12 targeted the Ubaque zone at Carrizales Norte field. The well was drilled to a total measured depth of 10,929 MD feet (8,419 feet true vertical depth).

On Aug. 5, 2025, Arrow put the CN HZ12 well on production in the Ubaque formation with a total horizontal oil-bearing section of 423 MD feet. CN HZ12 is producing at a stabilized rate of 532 bopd gross (266 bopd net) with a water cut of 75 per cent.

The Carrizales Norte HZ13 (CN HZ13) well was spudded on Aug. 6, 2025, and reached target depth on Aug. 23, 2025. CN HZ13 targeted the Ubaque zone at Carrizales Norte field. The well was drilled to a total measured depth of 11,232 MD feet (8,500 feet true vertical depth).

On Aug. 28, 2025, Arrow put the CN HZ13 well on production in the Ubaque formation with a total horizontal oil-bearing section of 797 MD feet. CN HZ13 is producing at a stabilized rate of 1,002 bopd gross (501 bopd net) with a water cut of 32 per cent.

RCE field

The Rio Cravo Este 10 horizontal (RCE HZ10) well was spudded on June 24, 2025, and reached target depth on July 12, 2025. RCE HZ10 targeted the Ubaque zone at Carrizales Norte field. The well was drilled to a total measured depth of 10,940 MD feet (8,014 feet true vertical depth).

On July 16, 2025, Arrow put the RCE HZ10 well on production in the Ubaque formation with a total oil-bearing section of 1,040 MD feet. RCE HZ10 is producing at a stabilized rate of 200 bopd gross (100 bopd net) with a water cut of 72 per cent.

Alberta Llanos field

At the Alberta Llanos field, the company has recently recompleted the AB-3 vertical well targeting the C7 formation.

On Sept. 5, 2025, Arrow put the AB-3 well on production in the C7 formation, which has approximately 20 feet (true vertical depth) of oil-charged sandstone. AB-3 is producing 840 bopd gross (420 bopd net) with a water cut of 73 per cent and continues to clean up load fluid.

Drilling schedule

Currently, the drilling rig is moving to the Mateguafa Oeste field to drill an exploration vertical well (MO-1). The well is expected to spud mid-September and is targeting the Ubaque reservoir. On the basis of a successful exploration well at MO-1, the company plans to drill four additional horizontal wells on the prospect. The exploration of Mateguafa Attic, Icaco, Macoya and the Capullo prospects is expected to follow the Mateguafa Oeste development.

Marshall Abbott, chief executive officer of Arrow, commented: "The Carrizales Norte field continues to deliver with successful wells CN HZ12 and CN HZ13. Both horizontal wells have further developed the Carrizales Norte field. The success of these two horizontal wells proves future development potential at Carrizales Norte.

"The RCE HZ10 well drilled into the Ubaque was a successful exploration target. The well is on production; however, the reservoir is tighter than at Carrizales Norte. The company is exploring completion techniques that could results in higher production results in the Ubaque at RCE.

"The AB-3 recompletion at the company's Alberta Llanos field is on production from the C7 and continuing to clean up. The original vertical well targeted the Ubaque and proved up the reservoir for the AB HZ4 and AB HZ5 wells. The C7 production is highly encouraging for future C7 development at both Alberta Llanos and the northern extent of the CN field.

"We appreciate the support of our long-standing shareholder base as well as the dedication of our talented staff."

About Arrow Exploration Corp.

Arrow Exploration (operating in Colombia through branches of its 100-per-cent-owned subsidiary, Arrow Exploration Switzerland GmbH) 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. Pursuant to certain private agreements entered between Arrow and its partner, Arrow is entitled to receive 50 per cent of the production from the Tapir block and has the right to request approval to Ecopetrol SA for the assignment of 50 per cent of all rights, interests and obligations under the Tapir association contract. Arrow is listed on the AIM (Alternative Investment Market) of the London Stock Exchange and on 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 was formerly a member of the Canadian Society of Petroleum Geologists, holds a BSc in geology from the University of Alberta, and has over 35 years of experience in the oil and gas industry.

We seek Safe Harbor.