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ARROW ANNOUNCES REACHING TARGET DEPTH ON THE CN-1 WELL

Multiple zones identified

CALGARY, May 15, 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 drilling of Carrizales Norte 1 (CN-1), an exploration well on the Tapir Block in the Llanos Basin of Colombia.

CN-1 Update

The CN-1 well was spud on May 1, 2023 and reached total depth on May 11, 2023. The well was drilled to a total measured depth of 9,190 feet (8,511 feet true vertical depth) and encountered approximately 148 feet of net oil pay measured depth (128 feet TVD).

The hydrocarbon bearing intervals are as follows:

·    26 feet of net pay in Carbonera C7 sands. High quality reservoir characteristics are similar to what was encountered in the highly productive Rio Cravo Este (RCE) series of wells.

·    64 feet of net oil pay within the Gacheta formation. Pay sands exhibit excellent reservoir characteristics with oil shows and strong hydrocarbon chromatograph response.

·    58 feet net oil pay within the Ubaque formation. The main pay zone is a very clean, thick and continuous sandstone with excellent reservoir characteristics.

Interval thicknesses are not necessarily indicative of long-term performance or ultimate recovery.  

A testing and completion program is under review. Testing will likely begin with the deeper Ubaque, followed by the Gacheta and then the highly porous and permeable C7 reservoirs. Tests will be conducted over the following weeks, with production forecast to commence in early June 2023. The Carrizales Norte-2 (CN-2) well will be drilled immediately upon completion of CN-1.

Marshall Abbott, CEO of Arrow commented:

"The CN-1 discovery is an extremely important and material event for Arrow and is further evidence of the potential of the Tapir block. All primary targets in the well have clear indications of oil pay and have the potential to greatly increase the Company's reserves and production.  Currently there are no reserves booked at the Carrizales Norte field. Apart from the exceptional technical results, the CN-1 well was drilled on time and under budget. Arrow plans to test several zones over the following weeks and then make a decision on which zone to bring on production.

Our expectation is that the CN wells will behave in a similar manner to the RCE wells, quick to payout with triple digit IRRs providing positive cashflow for the Company during a high commodity price environment. This is a very exciting time for Arrow, and we look forward to providing further updates on our progress."

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. Arrow's 50% interest in the Tapir Block is contingent on the assignment by Ecopetrol SA of such interest to Arrow. 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.

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").