NOT FOR RELEASE, DISTRIBUTION, PUBLICATION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO OR FROM THE UNITED STATES, AUSTRALIA, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO MIGHT CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION.

ARROW PROVIDES CN-3 PRODUCTION AND PRODUCTION UPDATE

C7 Light oil brought on production

CALGARY, September 18, 2023 - Arrow Exploration Corp. (AIM: AXL; TSXV: AXL) ("Arrow" or the "Company"), the high-growth operator with a portfolio of assets across key Colombian hydrocarbon basins, is pleased to provide an update on the Carrizales Norte-3 ("CN-3") well on the Tapir Block in the Llanos Basin of Colombia where Arrow holds a 50% beneficial interest.

CN-3

The Company has completed the previously announced testing of the Carbonera C7 formation in the CN-3 well and the well has been put into production. The well penetrated a 23 foot pay zone in a high quality upper C7 sand, with an estimated porosity of 25%. An electric submersible pump (ESP) has been inserted and the well was initially producing at an average rate of 1,149 BOPD gross (575 BOPD net) of light crude oil of 33° API with a water cut of less than 0.5% over a 22 hour period.  To efficiently manage the reservoir, and prevent premature water breakthrough, the ESP has been shut off and the well is naturally flowing. A 23/128 choke is being used to ease production back to a target of 640 BOPD gross (320 BOPD net). The Company maintains the optionality to increase production once the well has stabilized.

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

The Gacheta formation was not tested in the CN-3 well.  Management plans to test the Gacheta formation at Carrizales Norte in future wells.

Forward Work Program

The rig has commenced mobilization to the Rio Cravo Este ("RCE") field where Arrow plans to further exploit the multi-zone RCE structure with two dedicated Gacheta wells and a follow up to the RCE-6 C7 producer. The drilling rig is then expected to return to the Carrizales Norte field ("CN") to begin a multi horizontal well project.  Management plan to target the proven Ubaque formation at CN with six horizontal wells. Plans are to spud the first horizontal well in early 2024.

Production Update

Field operations and production continue to improve. Current production, including CN-3, is between 2,800 and 3,000 BOE/D net. Capella production, approximately 280 BOPD, remains shut-in, waiting on government and operator meetings with communities in the area. Two wells at the Oso Pardo field, approximately 80 BOPD in aggregate, are shut in waiting routine maintenance. To minimize capital requirements, Management will use the same rig to conduct this maintenance program and for drilling operations on Oso Pardo 3 and 4.  The rig is expected to arrive at the Oso Pardo field in mid-October.

Marshall Abbott, CEO of Arrow commented:

"The CN-3 testing results of the C7 formation have confirmed that the Carrizales Norte field is transformational for the company. Multiple development locations are anticipated based on current results, including horizontal drilling in the Ubaque reservoir.  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 spud five additional development wells between now and year-. We are also encouraged by the initial interpretation of the Tapir 3D seismic and look forward to providing further updates in due course."

For further Information, contact:

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".

Forward-looking Statements

This news release contains certain statements or disclosures relating to Arrow that are based on the expectations of its management as well as assumptions made by and information currently available to Arrow which may constitute forward-looking statements or information ("forward-looking statements") under applicable securities laws. All such statements and disclosures, other than those of historical fact, which address activities, events, outcomes, results or developments that Arrow anticipates or expects may, could or will occur in the future (in whole or in part) should be considered forward-looking statements. In some cases, forward-looking statements can be identified by the use of the words "continue", "expect", "opportunity", "plan", "potential" and "will" and similar expressions. The forward-looking statements contained in this news release reflect several material factors and expectations and assumptions of Arrow, including without limitation, Arrow's evaluation of the impacts of COVID-19, the potential of Arrow's Colombian and/or Canadian assets (or any of them individually), the prices of oil and/or natural gas, and Arrow's business plan to expand oil and gas production and achieve attractive potential operating margins. Arrow believes the expectations and assumptions reflected in the forward-looking statements are reasonable at this time, but no assurance can be given that these factors, expectations, and assumptions will prove to be correct.

The forward-looking statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The forward-looking statements contained in this news release are made as of the date hereof and the Company undertakes no obligations to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Glossary

API:     A specific gravity scale developed by the American Petroleum Institute (API) for measuring the relative density of various petroleum liquids, expressed in degrees.

BOPD:   barrels of oil per day

BOE/D:  barrels of oil equivalent per day

Qualified Person's Statement

The technical information contained in this announcement has been reviewed and approved by Grant Carnie, senior non-executive director of Arrow Exploration Corp. Mr. Carnie is a member of the Canadian Society of Petroleum Engineers, holds a B.Sc. in Geology from the University of Alberta and has over 35 years' experience in the oil and gas industry.

This Announcement contains inside information for the purposes of the UK version of the market abuse regulation (EU No. 596/2014) as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR").