Mr. Marshall Abbott reports

CORRECTION FROM SOURCE: ARROW ANNOUNCES APPRAISAL WELLS M-11 RESULTS

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

Mateguafa 11 well

The Mateguafa 11 well (M-11) was spudded March 9, 2026, and reached target depth March 15, 2026. The M-11 well was drilled, on time and under budget, to a total measured depth of 11,455 MD feet (9,328 feet true vertical depth) and encountered multiple hydrocarbon-bearing intervals.

Arrow put the M-11 well on production March 22, 2026, in the Carbonera C7 formation (C7), which has approximately 18 feet of net oil pay (true vertical depth) at this location. 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-11 well also encountered approximately 30 feet of net oil pay (true vertical depth) in the Carbonera C9 formation (C9). Arrow plans to test this formation in future wells.

The well was put on production at a heavily restricted rate, 32/128 choke and 33-hertz pump frequency, of approximately 784 BOPD (barrels of oil per day) gross (392 BOPD net). The oil quality is 31.5-degree API and there is a 25-per-cent water cut (completion fluid and formation water).

The testing results indicate that 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.

Mateguafa HZ12 well

The Mateguafa HZ (M-HZ12) well was spudded March 27, 2026, with expected production in April.

Mateguafa pad

The Mateguafa pad currently has the wells on production as shown in the attached table.

Forward drilling plans

After M-HZ12 the rig will move to the newly completed Icaco pad to drill an exploration well, which is expected to spud in May.

Production

Including the restricted production from the M-11 well, total corporate production is approximately 5,475 boe/d.

Cash balance

As of the date of this press release, the company's estimated cash balance is $13-million (U.S.). This reflects the increased activity drilling wells on the Mateguafa pad, completing the Icaco pad and initiating operating costs savings projects in the field. The company continues to have no debt.

Tapir extension

Arrow and its partner in the Tapir block remain in discussions with authorities on the extension of the Tapir block. To date the dialog has been very constructive. Arrow believes that all conditions required for the extension to be granted have been met and management remains very confident that the extension will be granted. The company will continue to update the market on developments as they occur.

Block COR-39

On March 20, 2026, the company received confirmation from the Colombian regulators (the ANH) that its application to terminate the COR-39 E&P (exploration and production) contract by mutual agreement has been approved. This eliminates a $12-million exploration commitment, at no penalty for the company.

Marshall Abbott, chief executive officer of Arrow, commented:

"The continued success of the Mateguafa wells reinforces the materiality of the Mateguafa field to Arrow. Arrow looks forward to the results of the new horizontal well, M- HZ12, on the Mateguafa pad.

"After drilling and putting the M-HZ12 well on production, Arrow plans to move the rig to the newly finished Icaco pad. The Icaco prospect has been developed by the Arrow team using both 2-D seismic and the more recently shot 3-D seismic program. Management believes the Icaco prospect will also result in a material discovery for Arrow and we look forward to updating our shareholders on the progress at Icaco over the coming months."

About Arrow Exploration Corp.

Arrow Exploration (operating in Colombia via a branch of its 100-per-cent-owned subsidiary, Carrao Energy S.A.) is a publicly traded company with a portfolio of premier Colombian oil assets that are underexploited, 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 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 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 Alternative Investment Market of the London Stock Exchange and on TSX Venture Exchange under the symbol AXL.

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. 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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