Operations Update and PDMR Exercise of Options

CALGARY, January 17, 2024 - Arrow Exploration Corp. (AIM: AXL; TSXV: AXL), the high-growth operator with a portfolio of assets across key Colombian hydrocarbon basins, is pleased to give an operations update and report the exercise of options by a Director and PDMR.

Carrizales Norte Update

The Petroworks 1,500-horsepower rig has arrived at the Carrizales Norte (CN) field in the Tapir block and is currently being erected. Arrow expects the CN-4 well, targeting the Ubaque formation at CN, will spud in the latter half of January.

CN-4 will be followed by CN-5 which will test the Carrizales Noroeste prospect. The CN-5 well is expected to spud in February. Following CN-5, the Petroworks 1,500 horsepower rig will remain at the CN pad and continue development of the CN field targeting the C7 formation.

Arrow is currently constructing the CN horizontal well pad (B Pad) and expects construction will be completed in March. Once the pad is complete the Company plans to bring in a 2,000-horsepower rig to drill the Company's first horizontal well (CN HZ-1). On success, Arrow plans to follow the first well up with additional horizontal wells from the B Pad.

Mateguafa Attic and Baquiano Updates

Work has begun upgrading the Mateguafa pad and construction of the Baquiano road and pad, both of which are located in the Tapir block.

The plan is for the first Mateguafa Attic well (MA-1) to spud in late Q1 or early Q2 using an additional 1,500 horsepower rig. The Company expects the Baquiano prospect to be drilled later in 2024.

Oso Pardo

Oso Pardo-1 (OP-1), on the Santa Isabel Block in the Middle Magdalena Valley Basin of Colombia, where Arrow has a 100 per cent working interest, is back on production after the pump was changed in late December. The Oso Pardo-3 (OP-3) and Oso Pardo-4 (OP-4) development wells were both drilled successfully targeting the Umir formation. The completion of these wells is pending well stimulation operations, to mitigate typical skin damage, which the Company plans to complete in Q1.

Options Exercised

Arrow announces that a Director exercised 2,277,721 options for common share of no par value ("Common Share"). A summary of the options exercised is as follows (all figures converted to pounds sterling):

The option exercise was accepted by the Company on January 15, 2024. The options, some which were set to expire immediately, were exercised at this time as the Company is expected to be continually operationally active over the next six months with limited periods in which Directors would be able to exercise options. The options have been exercised on a "cashless" basis. Under the terms of the Company's share option plan approved at the Company's AGM on 20 September 2023, this 'cashless' method results in the Company paying the option holder the value of the option (market price less strike price) from cash reserves. Accordingly, no new shares were issued for the option exercise.

Following the exercise of the options referred to above, there has been no change in the shareholding of PDMR's and Directors. Mr. Abbott holds 5,369,702 Common Shares (representing 2.29 per cent of the issued Common Shares).

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