Exploration Well IC-1 Results

CALGARY, May 26, 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 on the Icaco field on the Tapir Block in the Llanos Basin of Colombia where Arrow holds a 50 percent beneficial interest.

Icaco 1

The Icaco 1 exploration well (IC-1) was spud 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 ("C7"), 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 where the pay zone that was perforated is comprised of two clean sandstones with an average porosity of 25%. An electric submersible pump ("ESP") was inserted in the well after perforating. During the clean-up period the well reached an average rate of 735 BOPD gross (368 BOPD net) with a 50% 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, 30 Hz pump frequency resulting in a restricted rate of approximately 628 BOPD gross (314 BOPD net). The oil quality is 27.8° API and there is a 46% 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.

Icaco 2

The Icaco 2 (IC-2) well, a significant step out from the IC-1 well, was spud 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 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 continued to 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. 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, CEO 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 step out 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 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."

"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.