Mr. Marshall Abbott reports

ARROW ANNOUNCES EXPLORATION WELL M-5 RESULTS

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

Mateguafa 5 well

The Mateguafa 5 well (M-5) well was spudded on Oct. 24, 2025, and reached target depth on Oct. 30, 2025. The M-5 well was the first to be drilled into the Mateguafa Attic field after the procurement of the 3-D seismic program shot in 2024, and results from this well have confirmed the productive potential of the multipool field. The well was drilled, on time and on budget, to a total measured depth of 10,560 feet measured depth (9,334 feet true vertical depth) and encountered multiple hydrocarbon-bearing intervals.

Arrow put the M-5 well on production in the Guadalupe formation, which has approximately 26 feet of net oil pay (true vertical depth). The pay zone is a clean sandstone exhibiting an average porosity of 22 per cent with high resistivities. An electric submersible pump (ESP) has been inserted in the well after perforating.

The M-5 well also encountered approximately 11 feet of net oil pay (true vertical depth) in the Carbonera C7 formation. Arrow plans to test this formation in future wells.

The well was put on production at very restrictive operational parameters to allow the well cleanup and a proper water cut evaluation. Currently, the well is operating at a pump frequency of 30 hertz and a choke aperture of 17/128.

In the final 72 hours of the test, M-5 produced (at a heavily restricted rate, 17/128 choke and 30-hertz pump frequency) approximately 570 barrels of oil per day gross (285 barrels of oil per day net). The oil quality is 31-degree API and there is an 8-per-cent water cut (completion fluid and formation water). The water cut has been decreasing throughout the testing.

The testing results indicate the well is capable of higher rates and the ultimate flow rate will be determined in the first few weeks of production.

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

The well also encountered the Ubaque and Gacheta formations; however, these sands were not deemed to be commercial at this location.

Mateguafa 6

The Mateguafa 6 (M-6) well was spudded on Nov. 8, 2025. The M-6 well will further delineate the C7 and Guadalupe formations to develop a horizontal well program. The drilling, testing and completion of the well are expected to take three to four weeks from spud. The M-7 well is scheduled to be drilled immediately upon completion of the M-6 well.

2025 3-D program

The 2025 3-D program has identified multiple prospects with the Icaco prospect, in the southeastern corner of the Tapir block, the first one to be drilled in 2026. The company continues to progress the necessary licences, permits and drilling pad with the expectation that the Icaco prospect will be drilled in mid-Q1 2026. Multiple hydrocarbon reservoirs are being targeted at the Icaco prospect.

Production

Including the restricted production from the M-5 well, total corporate production is approximately 4,000 barrels of oil equivalent per day, in line with company modelling.

Cash balance

On Nov. 1, 2024, the company's cash balance was $8.2-million (U.S.), reflecting the intensive, two-rig drilling program that Arrow operated during the second quarter. The company continues to have no debt.

Marshall Abbott, chief executive officer of Arrow, commented: "Initial production from the M-5 discovery has exceeded expectations and is an exciting event for Arrow. In addition to the thick pay zones encountered on the Guadalupe formation, an additional pay zone currently behind pipe, the C7, provides further opportunities for production and reserves increases.

"The Mateguafa Attic discovery is material to Arrow and we are looking forward to the M-6 and M-7 results, which will further develop this discovery and help determine the extent of the pools and the potential reserves additions. Initial results indicate that the discovery will develop into another core area for Arrow with the potential for horizontal drilling development.

"We look forward to providing further updates on this low-risk development drilling program."

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 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.

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