Mr. Marshall Abbott reports

ARROW ANNOUNCES Q3 2025 INTERIM RESULTS

Arrow Exploration Corp. has filed its interim condensed (unaudited) consolidated financial statements and management discussion and analysis (MD&A) for the three and nine months ended Sept. 30, 2025, which are available on SEDAR+ and will also be available shortly on Arrow's website. All dollar amounts are in U.S. dollars, except as otherwise noted.

Q3 2025 highlights:

• Average corporate production of 4,214 barrels of oil equivalent per day (Q3 2024: 4,124 barrels of oil equivalent per day);
• Recorded $18.5-million of total oil and natural gas revenue, net of royalties;
• Realized corporate oil operating netbacks of $38.21 per barrel;
• Cash position of $6.3-million at the end of Q3 2025;
• Year-to-date generated operating cash flows of $25-million;
• Drilled two additional development wells in the Carrizales Norte (CN) field in the Tapir block and an exploration well in Mateguafa Oeste (MO);
• Net year-to-date income of $4.8-million.

Postperiod-end highlights:

• Drilled the Mateguafa Attic wells (Mateguafa-5 (M-5) and Mateguafa-6 (M-6)) and spudded the Mateguafa-7 horizontal well (M-HZ7).

Cash balance

On Nov. 1, 2025, the company's cash balance was $8.2-million. This reflects an intensive period of capital outlay as the company contracted a second rig during Q2 and Q3, built access roads and drill pads at Carrizales Norte, Mataguafa Oeste and Mataguafa Attic, and conducted preliminary works at the highly prospective Icaco project. The company has now reverted to operating one rig, and the site preparation and seismic costs are largely met; this provides a foundation for future development and exploration activities. Both production and netbacks remain robust at current market prices.

Tapir extension and COR-39 block

The company is engaged in continuing discussions with authorities on the Tapir block extension. Arrow considers that all requirements for the extension have been met. Furthermore, the company is in discussions with regulatory bodies on the termination of COR-39 block licence obligations (where activity has been suspended since November, 2017). Discussions with authorities are going well and Arrow will keep the market updated in future releases.

Coming drilling

The company has spudded the M-HZ7 well, which is expected to be put on production in mid-December, 2025. Thereafter, the company expects to drill another well at its Mateguafa Attic field and initiate civil works in preparation to drill its first exploration well in the Icaco prospect in Q1 2026.

Marshall Abbott, chief executive officer of Arrow Exploration, commented: "The third quarter of 2025 has been very busy for Arrow. We completed two development wells in Carrizales Norte and drilled the Mateguafa Oeste exploration well as well as setting up infrastructure for the discovery at Mateguafa Attic and the upcoming exploration well at Icaco. The Mateguafa Attic discovery could become a major production platform and have a material impact on the company, and the Icaco prospect is another near-term catalyst that we expect will be drilled in the first quarter of 2026.

"The company continues to work with regulatory authorities on the extension of the Tapir block. The company considers it has met all of the requirements for an extension and discussions with regulatory officials continue to progress.

"Arrow has invested heavily into roads, pads and water infrastructure in both Q2 and Q3 and the results can be seen with a significant decrease in the company's operating cost in Q3 when compared to Q2 2025. This investment will continue to pay back over the life of the Tapir pads.

"The focus for the remainder of 2025 will be to drill low-risk wells at the Mateguafa Attic pad in the Tapir block and to get all preliminary works in place to drill our first exploratory well at the Icaco prospect."

Discussion of operating results

During Q3 2025, the company's production has increased, compared with the previous two quarters, due to wells drilled in the Alberta Llanos and Rio Cravo Este fields coming on production. Production growth is expected to continue as the company executes on the 2025 budget. During the quarter, the company maintained good operating results and healthy EBITDA (earnings before interest, taxes, depreciation and amortization).

The company's average production for the three months ended Sept. 30, 2025, was 4,214 barrels of oil equivalent per day, which consisted of crude oil production in Colombia of 3,990 barrels per day, natural gas production of 1,306,000 cubic feet per day and minor amounts of natural gas liquids. The company's Q3 2025 production was marginally higher than its Q3 2024 production and 12 per cent higher than Q2 2025 due to increase in production in the Alberta Llanos field.

Discussion of financial results

During Q3 2025, the company has experienced a reduction in realized crude oil and gas prices compared with the same period in 2024, as summarized below.

Operating netbacks

The company also continued to realize good oil operating netbacks, as summarized below.

The operating netbacks of the company have been affected in 2025 due to increased water production from its Colombian assets and decreased crude oil and natural gas prices. During Q3 2025, the company incurred $9-million of capital expenditure, primarily in connection with the drilling of additional development wells in the Tapir block. This tempo is expected to continue during the remainder of 2025, financed by cash on hand and cash flow.

About Arrow Exploration Corp.

Arrow Exploration (operating in Colombia through a branch 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 the TSX Venture Exchange under the symbol AXL.

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