Mr. Marshall Abbott reports

ARROW ANNOUNCES EXPLORATION WELL IC-1 RESULTS

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

Icaco 1

The Icaco 1 exploration well (IC-1) was spudded May 5, 2026, and reached target depth on May 9, 2026. The IC-1 well was drilled, on time and under budget, to a total measured depth of 7,800 feet (7,524 feet true vertical depth) and encountered multiple hydrocarbon-bearing intervals.

As previously disclosed, the log analysis shows a total of 30 feet of pay in the Carbonera C7 formation, 15 feet of pay in the Gacheta formation and 26 feet of pay in the Ubaque formation.

Arrow put IC-1 on production on May 15, 2026, in the C7 formation, where the pay zone that was perforated comprises two clean sandstones with an average porosity of 25 per cent. An electric submersible pump (ESP) was inserted in the well after perforating. During the cleanup period, the well reached an average rate of 735 barrels of oil per day gross (368 barrels of oil per day net) with a 50-per-cent water cut for a 15-hour period before settling into the current stable production rate.

The well is currently on production at 15/128 choke and 30-hertz pump frequency, resulting in a restricted rate of approximately 628 barrels of oil per day gross (314 barrels of oil per day net). The oil quality is 27.8 degrees API and there is a 46-per-cent water cut (completion fluid and formation water).

The testing results indicate that the well is capable of higher rates, with well and pump optimization, and the ultimate flow rate will be determined over the coming weeks of production.

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

Icaco 2

The Icaco 2 (IC-2) well, a significant step out from the IC-1 well, was spudded on May 18, 2026. The IC-2 well will give Arrow an opportunity to increase production from Icaco as well as provide further information on the size and materiality of the Icaco discovery.

Forward drilling plans

The company plans further appraisal and development drilling at the Icaco field, including potential horizontal well development. With continued positive results at Icaco, the company would build additional cellars and continue with development drilling that could last until the third quarter. After initial development at the Icaco pad has concluded, the company plans development drilling at the AB and CN pads.

Production

Including the restricted production from the IC-1 well, total gross corporate production is approximately 5,100 barrels of oil equivalent per day. Currently, the CN-HZ12 well is off-line waiting on a workover. The well was producing approximately 330 barrels of oil per day gross (165 barrels of oil per day net) when it was shut in. Arrow has continued to shut in the Pepper gas field due to low natural gas prices in Alberta, which was producing approximately 130 barrels of oil equivalent per day when it was shut in. The company believes that AECO gas prices will improve in the third and fourth quarter of 2026 once the region moves into the winter months. At that time, the Pepper field is expected to be brought back on production.

Marshall Abbott, chief executive officer of Arrow commented: "Management believes the Icaco 1 well result is a material discovery in the southeastern area of the Tapir block. Icaco 2, a significant stepout to the north, will help delineate the pool and determine initial volumes and areal extent of each individual oil-producing zone."

"The Icaco prospect has been developed by the Arrow team using both 2-D seismic and the more recently shot 3-D seismic program. The Icaco prospect demonstrates the same technical scope and repeatability of the play type that has proven to be highly successful for Arrow in the Tapir block in the Llanos basin of Colombia. Management looks forward to updating shareholders on the progress at Icaco in the near term.

"With production over 5,000 boe/d, Arrow aims to maintain a strong balance sheet with a healthy cash position, no debt and significant cash flow, as seen in our 2025 audited financial statements. In the current oil price environment, the company continues to build cash resources. This provides a stable platform with optionality to pursue both organic growth and accretive acquisitions."

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 (AIM requirement)

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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