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Calgary, Alberta--(Newsfile Corp. - October 22, 2026) - Arrow Exploration Corp. (AIM: AXL) (TSXV: AXL) ("Arrow" or the "Company"), the high-growth operator with a portfolio of assets across key Colombian and Canadian hydrocarbon basins, is pleased to provide an update on operational activity at the Icaco field on the Tapir Block in the Llanos Basin of Colombia where Arrow holds a 50 percent beneficial interest.

Production

Current total corporate production is over 6,500 boe/d, including production from Icaco 8 (IC-8) and Icaco 7 (IC-7). This is a record high production rate for the Company and reflects recent drilling successes from the Icaco pad. Arrow believes it can continue to grow production from its prospect-rich inventory.

Cash Balance

As of October 1, 2026, the Company's estimated cash balance is over US$28 million. The Company continues to enjoy a strong balance sheet while growing production and associated cash balance.

Icaco-8 Well

The Icaco 8-ST-1 well was spud September 21, 2026 and reached total depth October 3, 2026. The well was drilled to a measured depth of 11,000 feet (7,384 feet total vertical depth). The IC-8-ST-1 well encountered 72 feet MD ( 23 feet TVD) of net pay in the Carbonera C7 formation ("C7"), 20 feet MD ( 6 feet TVD) of net pay in the Guadalupe Formation, 30 feet MD (10 feet TVD) of net pay in the Lower Gacheta, and 85 feet MD (30 feet TVD) of net pay in the Ubaque formation.

The IC-8 well was brought on production October 12, 2026, and is currently producing from the Carbonera C7 formation at a restricted rate of approximately 1,204 BOPD gross (602 BOPD net), with a 27/128 choke and 32 Hz pump frequency. The oil quality is 28.2° API and there is a 33% water cut. The well is continuing to clean up.

Icaco-7 Well

The Icaco 7 well was spud September 1, 2026 and reached total depth September 7, 2026. The well was drilled to a measured depth of 13,000 feet (7,347 feet total depth). The IC-7 well encountered 86 feet MD (15 feet TVD) of net pay in the Carbonera C7 formation ("C7") and 256 feet MD ( 57 feet TVD) of net pay in the Ubaque formation.

The IC-7 well was brought on production September 20, 2026, and is currently producing from the Ubaque formation at a restricted rate of approximately 248 BOPD gross (124 BOPD net), with a 20/128 choke and 44 Hz pump frequency. The oil quality is 13.2° API and there is a 31% water cut.

Forward Drilling Plans

Icaco HZ9 (IC-HZ9) well was spud October 13, 2026, and completed drilling October 20, 2026. IC-HZ9 is a horizontal well targeting the Carbonera C7 formation. This is the first horizontal well in the Carbonera reservoir in the Tapir Block and to date the well appears to have 950 feet of horizontal oil pay (measured depth).

Tapir Extension

Arrow continues constructive discussions with regulatory bodies on the Tapir extension. The recent Presidential election resulted in a forward looking Government that is pro-business. In line with President De La Espriella's vision to increase Colombia's oil and gas development, Arrow is looking forward to being a part of the President's vision.

Marshall Abbott, CEO of Arrow, commented:

"Arrow is very proud to surpass the 6,500 boe/d threshold. The additional production from drilling and workovers highlights the continued operational success the Company has had on the Tapir block. The multi-zone quality of the Icaco discovery, and its commensurate production rates, have surpassed initial expectations."

"The IC-8 well illustrates the excellent results that are possible in all three producing zones at Icaco. The Company has built 16 well cellars at Icaco and is continuing to drill Carbonera C7, Gacheta and Ubaque wells on the Icaco pad."

"The Company continues to experience strong netbacks in this high oil price environment. This adds significant value and materially strengthens our balance sheet. We look forward to updating our shareholders on further progress at Icaco over the coming months."

For further information, contact:   Arrow Exploration
Marshall Abbott, CEO+1 403 651 5995Joe McFarlane, CFO+1 403 818 1033

Canaccord Genuity 
(Nominated Adviser and Joint Broker)
Henry Fitzgerald-O'Connor+44 (0)20 7523 8000James Asensio Rory Blundell George Grainger   Auctus Advisors 
(Joint Broker)
Jonathan Wright +44 (0)7711 627449Rupert Holdsworth Hunt

Hannam & Partners
(Joint Broker)
Leif Powis+44 20 7907 8500Samuel Merlin
  Camarco 
(Financial PR)
Owen Roberts +44 (0)20 3781 8331Rebecca Waterworth
Kirsty Duff 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. By way of a private commercial contract with the recognized interest holder before Ecopetrol S.A., Arrow is entitled to receive 50% 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 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 Nilanjan Ganguly, Chief Geophysicist of Arrow Exploration Corp. Mr. Ganguly is a member of the Canadian Society of Petroleum Geophysicists, holds a Masters of Science in Geophysics from the University of Victoria and has over 22 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").

Glossary

API - American Petroleum Institute gravity, a measure of the density of petroleum liquids

BOE/D - Barrels of oil equivalent per day

BOPD - Barrels of oil per day

Hz - Hertz

MD - Measured depth

Net pay - The thickness of reservoir containing economically producible hydrocarbons

TVD - True vertical depth

Water cut - The proportion of total produced liquids comprising water

NOT FOR RELEASE, DISTRIBUTION, PUBLICATION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO OR FROM THE UNITED STATES, AUSTRALIA, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO MIGHT CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/320305

Source: Arrow Exploration Corp.

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Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.

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Calgary, Alberta--(Newsfile Corp. - August 27, 2026) - Arrow Exploration Corp. (AIM: AXL) (TSXV: AXL) ("Arrow" or the "Company"), the high-growth operator with a portfolio of assets across key Colombian and Canadian hydrocarbon basins, is pleased to announce the filing of its Interim Condensed (unaudited) Consolidated Financial Statements and Management's Discussion and Analysis ("MD&A") for the three months ended June 30, 2026, which are available on SEDAR (www.sedarplus.ca) and will also be available shortly on Arrow's website at www.arrowexploration.ca.

Q2 2026 Highlights:

Recorded $34.2 million of total oil and natural gas revenue, net of royalties, representing a 116% increase when compared to the same period in 2025 (Q2 2025: $15.9 million).Average corporate production of 4,902 boe/d representing a 30% increase when compared to the same period in 2025 (Q2 2025: 3,768 boe/d).Adjusted EBITDA(1) of $25.1 million, a 300% increase when compared to the same period in 2025 (Q2 2025: $6.3 million). Realized corporate operating netbacks(1) of $63.42/boe. Cash position of $28.5 million at the end of Q2 2026 and no debt.Q2 2026 operating cashflows of $15.7 million. Drilled one successful exploration well and two additional development wells in the Icaco field (IC) and one horizontal development well in the Mateguafa Attic field in the Tapir blockNet income of $10.4 million (Q2 2025: loss of 0.9 million)(1)Non-IFRS measures - see "Non-IFRS Measures" section below

Post Period End Highlights:

Drilled two development wells, and spudded a third, at the Icaco fieldCompleted the acquisition of the Thorsby field in Alberta, Canada adding production, proved reserves and additional upside opportunities for development drilling (please refer to press release dated August 13, 2026 for more details). Recompleted two Carrizales Norte wells to increase productionTapir Extension

The Company continues constructive engagement with authorities regarding the Tapir block extension and believes it is well positioned to secure the extension based on satisfaction all of the relevant requirements. Arrow will keep the market updated on progress with its license extension discussions in future releases.

Marshall Abbott, CEO of Arrow Exploration Corp., commented:

"The second quarter of 2026 has been very productive for Arrow, our best quarter yet. The discovery of the Icaco field has resulted in the beginning of a large development plan. The multi-formation discovery will result in additional reserves and drilling inventory for Arrow. We are excited by the Icaco discovery; it has become a major production platform with a material impact on the Company."

"Arrow significantly increased revenue and EBITDA while sustaining increased production, which, along with a robust balance sheet, supports the ongoing capital program. The focus for the remainder of 2026 will be to drill additional wells at the Icaco pad, and numerous well recompletions to improve productivity in our currently most prolific fields."

FINANCIAL AND OPERATING HIGHLIGHTS

(in United States dollars, except as otherwise noted)
Three months ended June 30, 2026

Six months
ended June 30, 2026

Three months ended June 30, 2025
Total natural gas and crude oil revenues, net of royalties
34,219,743

57,718,059

15,868,938

 

 

 
Funds flow from operations (1)
18,904,806

30,462,029

3,994,525
Funds flow from operations (1) per share -
 

 

 
Basic($)
0.07

0.11

0.01
Diluted ($)
0.07

0.11

0.01
Net income (loss)
10,357,179

15,578,650

(934,735)Net income (loss) per share -
 

 

 
Basic ($)
0.04

0.05

(0.00) Diluted ($)
0.04

0.06

(0.00)Adjusted EBITDA (1)
25,164,710

39,225,167

6,269,979
Weighted average shares outstanding -
 

 

 
Basic
285,864,348

285,864,348

285,864,348
Diluted
289,523,559

288,231,181

295,209,883
Common shares end of period
285,864,348

285,864,348

285,864,348
Capital expenditures
9,361,608

17,243,943

14,771,206
Cash and cash equivalents
28,495,045

28,495,045

13,212,417
Current Assets
49,536,264

49,536,264

20,213,917
Current liabilities
35,021,378

35,021,378

19,820,706
Adjusted working capital(1)
14,514,886

14,514,886

393,211
Long-term portion of restricted cash
274,377

274,377

154,849
Total assets
126,194,668

126,194,668

92,729,950

 

 

 
Operating
 

 

 

 

 

 
Natural gas and crude oil production, before royalties
 

 

 
Natural gas (Mcf/d)
574

824

1,587
Natural gas liquids (bbl/d)
5

5

10
Crude oil (bbl/d)
4,801

4,666

3,493
Total (boe/d)
4,902

4,808

3,767

 

 

 
Operating netbacks ($/boe) (1)
 

 

 
Natural gas ($/Mcf)
($1.71)
($1.07)
($1.45)Crude oil ($/bbl)$64.90
$54.17
$30.08
Total ($/boe)$63.42
$52.44
$27.36
(1)Non-IFRS measures

DISCUSSION OF OPERATING RESULTS

During Q2 2026, the Company's production continued to increase due to additional volumes of oil crude production from the Mateguafa Attic and the new Icaco field in the Tapir block, offset by decreased production in other fields due to natural declines. This has allowed the Company to continue its healthy level of operating results and EBITDA.

Average Production by Property

Average Production Boe/d
YTD 2026

Q2 2026

Q1 2026

YTD 2025

Q4 2025

Q3 2025

Q2 2025
Oso Pardo
101

104

98

114

95

103

131
Rio Cravo Este (Tapir)
817

753

881

1,043

996

1,065

996
Carrizales Norte (Tapir)
1,338

1,253

1,424

1,991

1,702

1,879

2,070
Alberta Llanos (Tapir)
284

275

294

474

446

943

296
Mateguafa (Tapir)
2,031

2,228

1,833

127

500

-

-
Icaco (Tapir)
95

188

-

-

-

-

-
Total Colombia
4,666

4,801

4,530

3,749

3,739

3,990

3,493
Fir, Alberta
79

90

67

100

107

29

100
Pepper, Alberta
64

11

118

162

129

47

170
KEHO, Alberta
-

-

-

1

-

-

5
TOTAL (Boe/d)
4,809

4,902

4,715

4,012

3,975

4,065

3,768
The Company's average production for the three months ended June 30, 2026 was 4,902 boe/d, which consisted of crude oil production in Colombia of 4,801, natural gas production of 574 Mcf/d, and minor amounts of natural gas liquids. The Company's Q2 2026 production was 30% higher than its Q2 2025 production and 4% higher than Q1 2026, due to the Mateguafa Attic and Icaco fields additional volumes, offset by declines in other fields.

DISCUSSION OF FINANCIAL RESULTS

The Company realized prices of $89.65 and $76.95 per boe during the three months ended June 30, 2026 (2025: $53.33) due to overall increase in crude oil and natural gas prices during the first half of 2026, offset by decreases in natural gas prices.

Three months ended June 30

2026

2025

Change
Benchmark Prices

AECO (C$/Mcf)$1.55
$1.72

(10%)
Brent ($/bbl)$96.87
$69.80

39%
West Texas Intermediate ($/bbl)$92.85
$63.70

46%
Realized Prices
 

 

 
Natural gas, net of transportation ($/Mcf)$1.24
$1.27

(2%)
Natural gas liquids ($/bbl)$47.85
$51.76

(8%)
Crude oil, net of transportation ($/bbl)$91.34
$56.87

61%
Corporate average, net of transport ($/boe)(1)$89.65
$53.33

68%
(1)Non-IFRS measure

OPERATING NETBACKS

The Company also continued to realize good oil operating netbacks, as summarized below:

Three months ended June 30

2026

2025
Natural Gas ($/Mcf)

Revenue, net of transportation expense$1.24
$1.27
Royalties
($0.27)
($0.10)Operating expenses
($2.68)
($2.61)Natural Gas operating netback(1)
($1.71)
($1.45)Crude oil ($/bbl)
 

 
Revenue, net of transportation expense$91.34
$56.87
Royalties
($11.39)
($6.63)Operating expenses
($15.05)
($20.17)Crude Oil operating netback(1)$64.90
$30.08
Corporate ($/boe)
 

 
Revenue, net of transportation expense$89.65
$53.33
Royalties
($11.18)
($6.18)Operating expenses
($15.05)
($19.79)Corporate Operating netback(1)$63.42
$27.36
(1)Non-IFRS measure

The operating netbacks of the Company for the three and six months ended June 30, 2026 have improved due to the overall increase in crude oil prices, as well as increased production. The Company continues to develop alternatives to trucking water for disposal in order to improve operating costs. During Q2 2026, the Company incurred $7.6 million of capital expenditure, primarily in connection with the drilling of additional development wells in the Tapir block. This tempo is expected to continue during the remainder of 2026, funded by cash on hand and cashflow.

For further Information, contact:

Arrow Exploration
Marshall Abbott, CEO+1 403 651 5995Joe McFarlane, CFO+1 403 818 1033

Canaccord Genuity (Nominated Advisor and Joint Broker)
Henry Fitzgerald-O'Connor
James Asensio
George Grainger +44 (0)20 7523 8000Auctus Advisors (Joint Broker)
Jonathan Wright +44 (0)7711 627449Rupert Holdsworth Hunt

Hannam & Partners (Joint Broker)
Leif Powis+44 20 7907 8500Samuel Merlin
Camarco (Financial PR)
Owen Roberts +44 (0)20 3781 8331Rebecca Waterworth
About Arrow Exploration Corp.

Arrow Exploration Corp. (operating in Colombia via a branches of its 100% owned subsidiary Arrow Exploration Switzerland GmbH) 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. Pursuant to certain private agreements entered between Arrow and its partner, Arrow is entitled to receive 50% of the production from the Tapir block and has the right to request approval to Ecopetrol S.A. for the assignment of 50% of all rights, interests and obligations under the Tapir Association Contract. 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 global pandemics, 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.

Glossary

Bbl/d or bop/d: Barrels per day
$/Bbl: Dollars per barrel
Mcf/d: Thousand cubic feet of gas per day
Mmcf/d: Million cubic feet of gas per day
$/Mcf: Dollars per thousand cubic feet of gas
Mboe: Thousands of barrels of oil equivalent
Boe/d: Barrels of oil equivalent per day
$/Boe: Dollars per barrel of oil equivalent
MMbbls: Million of barrels

BOE's may be misleading particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 bblis based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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").

Non‐IFRS Measures

The Company uses non-IFRS measures to evaluate its performance which are measures not defined in IFRS. Working capital, funds flow from operations, realized prices, operating netback, adjusted EBITDA, and net debt as presented do not have any standardized meaning prescribed by IFRS and therefore may not be comparable with the calculation of similar measures for other entities. The Company considers these measures as key measures to demonstrate its ability to generate the cash flow necessary to fund future growth through capital investment, and to repay its debt, as the case may be. These measures should not be considered as an alternative to, or more meaningful than net income (loss) or cash provided by operating activities or net loss and comprehensive loss as determined in accordance with IFRS as an indicator of the Company's performance. The Company's determination of these measures may not be comparable to that reported by other companies.

NOT FOR RELEASE, DISTRIBUTION, PUBLICATION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO OR FROM THE UNITED STATES, AUSTRALIA, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO MIGHT CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/311664

Source: Arrow Exploration Corp.

Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.

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Calgary, Alberta--(Newsfile Corp. - August 7, 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 Icaco field on the Tapir Block in the Llanos Basin of Colombia where Arrow holds a 50 percent beneficial interest.

Icaco-3 Well

The Icaco 3 well (IC-3) was spud on July 2, 2026, and reached target depth on July 9, 2026. The IC-3 well was drilled, on time and under budget, to a total measured depth of 7,710 TMD feet (Total Measured Depth), or 7,622 TVD feet (True Vertical Depth) and encountered multiple hydrocarbon-bearing intervals.

Log analysis shows 18 feet of net pay in the Carbonera C7 formation ("C7"), 12 feet of net pay in the Gacheta formation and 20 feet of net pay in the Ubaque formation, for a total net pay of 50 feet TVD.

The well is currently producing from the Gacheta formation at a restricted rate, 19/128 choke and 38 Hz pump frequency, of approximately 250 BOPD gross (125 BOPD net). The oil quality is 25.3° API and there is a lower than 1% water cut.

Management considers the Gacheta production a very important feature in the Icaco discovery not only to prove reserves but also to determine the optimum way to develop the formation and maximize recovery from future wells. The results of the IC-3 production test will be reflected in reserves additions for Arrow at the next reserve report update.

Icaco-4 Horizontal Well

The Icaco 4 horizontal well (IC-HZ4) was spud on June 13, 2026, and reached target depth on June 25, 2026. The IC-HZ4 well was drilled, on time and under budget, to a total measured depth of 12,617 feet TMD or 7,297 feet TVD and encountered multiple hydrocarbon-bearing intervals.

Arrow put IC-HZ4, a short horizontal well, on production on July 2, 2026 in the Ubaque formation. The pay zone is a clean sandstone exhibiting an average porosity of 23% 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 799 BOPD gross (399 BOPD net) before settling into the current stable production rate of 150 BOPD gross (75 BOPD net).

Although logs are showing extended areas with high oil saturation along the horizontal section, management believes that during the completion operation ICD valves were placed too close to a water bearing zone, causing the water to overtake and reduce the oil production in the well. Management is looking at alternatives to maximize oil production efficiency in this well.

The IC-HZ4 well also encountered approximately 23 feet of net oil pay TVD in the C7 and 10 feet of net oil pay TVD in the Gacheta formation.

Icaco-5 Horizontal Well

The Icaco 5 horizontal well (IC-HZ5) was spud on July 16, 2026, and reached target depth on July 27, 2026. The IC-HZ5 well was drilled, on time and under budget, to a total measured depth of 11,914 feet TMD or 7,274 feet TVD and encountered multiple hydrocarbon-bearing intervals.

Arrow put IC-HZ5, short horizontal well, on production on August 3, 2026 in the Ubaque formation. The pay zone is a clean sandstone exhibiting an average porosity of 23% with high resistivities. An ESP has been inserted in the well after perforating. The well is still cleaning up and is producing at a current rate of 1,270 BOPD gross (635 BOPD net).

The IC-HZ5 well also encountered approximately 20 feet of net oil pay (true vertical depth) in the C7 formation.

Flow Test Results

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.

Forward Drilling Plans
Five additional cellars have been built at Icaco to continue the drilling program. IC-6 will be a vertical well with Carbonera C7, Gacheta and Ubaque targets.

Production
Including production from the IC-3, IC-HZ4 and IC-HZ5 wells, total gross corporate production is over 5,000 boe/d. Currently the CN-HZ12 well is offline whilst the workover work to restore production is underway. 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.

Cash Balance
As of August 1, 2026, the Company's estimated cash balance is US$27.5 million. The Company continues to have no debt.

Tapir Extension

Arrow and its partner in the Tapir block continue to be encouraged with the dialogue with the Colombian authorities regarding the extension of the Tapir block. 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. Colombia elected a new President, Abelardo De La Espriella, in June. The transition to the new President will take place in August. President De La Espriella has discussed Colombia needing more oil and gas development, and Arrow is looking forward to being a part of the President's vision.

Marshall Abbott, CEO of Arrow commented:

"The success of the Icaco-3 well indicates that the Gacheta formation is able to produce commercial rates. The Icaco-4 and Icaco-5 horizontal wells had very short horizontal sections to prove the Ubaque's ability to produce from a horizontal well. Future projects at Icaco are expected to include both horizontal and vertical development wells targeting the Ubaque, Gacheta and C7. These results underline the significant hydrocarbon density that exists in the Llanos basin and more exclusively in the Tapir Block.

"Strong netbacks and successful horizontal wells support payout occurring in months. This adds significant value and materially improves our positive balance sheet. We look forward to updating our shareholders on the progress at Icaco over the coming months."

For further Information, contact:

Arrow Exploration
Marshall Abbott, CEO+1 403 651 5995Joe McFarlane, CFO+1 403 818 1033  
Canaccord Genuity (Nominated Advisor and Joint Broker)
Henry Fitzgerald-O'Connor+44 (0)20 7523 8000James Asensio Rory Blundell George Grainger     Auctus Advisors (Joint Broker)
Jonathan Wright +44 (0)7711 627449Rupert Holdsworth Hunt
   
Hannam & Partners (Joint Broker)
Leif Powis+44 20 7907 8500Samuel Merlin
     Camarco (Financial PR)
Owen Roberts +44 (0)20 3781 8331Rebecca Waterworth
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. By way of a private commercial contract with the recognized interest holder before Ecopetrol S.A., Arrow is entitled to receive 50% 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 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 was formerly a member of the Canadian Society of Petroleum Geologists, 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").

GlossaryPay A reservoir or portion of a reservoir that contains economically producible hydrocarbons ICD Inflow Control Device NOT FOR RELEASE, DISTRIBUTION, PUBLICATION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO OR FROM THE UNITED STATES, AUSTRALIA, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO MIGHT CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/308504

Source: Arrow Exploration Corp.

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