Appraisal Well M-12 Results

First Icaco exploration well spud

CALGARY, May 8, 2026 - 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 operational activity at the Mateguafa Attic field on the Tapir Block in the Llanos Basin of Colombia where Arrow holds a 50 percent beneficial interest.

Mateguafa H-Z12 Well

The Mateguafa HZ12 well (M-HZ12) was spud March 27, 2026, and reached target depth on April 7, 2026. The M-HZ12 well was drilled, on time and under budget, to a total measured depth of 13,824 feet (8,455 feet true vertical depth) and encountered multiple hydrocarbon-bearing intervals.

Arrow put M-HZ12 on production on April 16, 2026 in the Carbonera C9 formation ("C9"), which has approximately 30 feet of net oil pay (true vertical depth) at this location. The pay zone is a clean sandstone exhibiting an average porosity of 24% with high resistivities. An electric submersible pump (ESP) has been inserted in the well after perforating. During the clean-up period the well reached a maximum rate of 668 BOPD gross (334 BOPD net) before settling into the current stable production rate.

The M-HZ12 well also encountered approximately 15 feet of net oil pay (true vertical depth) in the Carbonera C7 formation ("C7").

The well is currently on production at 33/128 choke, 36 Hz pump frequency resulting in a heavily restricted rate of approximately 564 BOPD gross (282 BOPD net). The oil quality is 32° API and there is a 60% 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 over the coming weeks of production.

Mateguafa Pad

The Mateguafa Pad currently has the following wells on production:

Forward Drilling Plans

The rig is currently at the Icaco pad where the Icaco 1 (A-1) well, an exploration well, was spud on May 5, 2026. Dependent upon the success of the A-1 well, Arrow plans a development program at the Icaco location.

The Company is also in the process of contracting a workover rig for a number of recompletions on the Tapir block. Arrow expects the workovers to begin late in the second quarter.

Production

Including the restricted production from the M-HZ12 well, total gross corporate production is approximately 5,000 boe/d. Currently the CN-HZ12 well is offline waiting on a workover. The well was producing approximately 330 BOPD gross (165 BOPD net) when it was shut in. Arrow has also shut in the Pepper gas field due to low natural gas prices in Alberta which was producing approximately 130 boe/d when it was shut in.

Prices

During March and April 2026, Arrow's oil field realized prices averaged $87 US/barrel and $90 US/barrel respectively, which reflects the increase in Brent oil prices caused by the unrest in the Middle East. Brent averaged $103.13 and $103.91 during the March and April 2026 periods.

Field prices reflect the deduction of the Vasconia differential and logistics fees (mostly transportation and quality differential) and are the prices Arrow receives for production.

Cash Balance

On May 1, 2026, the Company's cash balance was US$24.2 million. The Company continues to have no debt.

Tapir Extension

Arrow and its partner in the Tapir block remain in discussions with regulatory employees on the extension of the Tapir block. To date the dialog has been very constructive and we are working towards an agreement. Management remains very confident that the extension will be granted. Once the Colombian Federal election has been decided Arrow expects the focus of the regulatory bodies to return to the extension application process. The Company will continue to update the market on developments as they occur.

Marshall Abbott, CEO of Arrow commented:

"The continued success of the Mateguafa wells reinforces the materiality of the Mateguafa field to Arrow. Future work at Mateguafa will include both horizontal and vertical development wells, workovers and co-mingling."

"The Icaco prospect has been developed by the Arrow team using both 2D seismic and the more recently shot 3D 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."

"Arrow aims to maintain a strong balance sheet with a healthy cash position, no debt and significant cash flow. This provides a stable platform with optionality to pursue both organic growth and accretive acquisitions."

About Arrow Exploration Corp.