Arrow Exploration today provides an update on the drilling activity at Rio Cravo Este ("RCE") on the Tapir Block in the Llanos Basin of Colombia and is providing an operations update.

RCE-5

The RCE-5 well was spud on March 19, 2023, and reached target depth on March 29, 2023. RCE‑5 was the sixth well drilled into the RCE field and results from this well have further confirmed the high potential of the field. The well was drilled to a total measured depth of 10,200 feet (8,100 feet true vertical depth) and encountered six hydrocarbon bearing intervals totaling 90 net feet (measured depth) of oil pay.

The well was completed in the upper part of the Carbonera C7 formation. A submersible pump has been inserted. The well is being choked back and it is flowing with a 27/168 choke. In the last 24 hours, although it is still unloading the completion fluid, it has produced at a rate of 680 BOPD gross (340 BOPD net) of oil at 28.9 API and with a 12% water cut. The Company will provide further updates on production rates in due course.   

Initial production results are not necessarily indicative of long-term performance or ultimate recovery.  

Operations Update

RCE-4
The RCE-4 well is flowing at 944 BOPD gross (487 BOPD net) while being choked back currently with a 24/128 choke.  Water cut is now at 0%.

RCE-3
The RCE-3 well is producing at 852 BOPD gross (426 BOPD net) with a 25/128 choke. Water cut is less than expected at 15%.

Carrizales Norte
The 1500 HP drilling rig is being moved from the pad at RCE to the Carrizales Norte (CN) prospect. CN is located on trend with the highly productive Carrizales oil field. With success at this location an additional two wells may be drilled.

Capella Field
The Capella field continues to be shut in and discussions between the government, protesters and the operator are ongoing. The Company hopes for a quick resolution of the protesters' concerns. Further updates will be given once the field is back on production.

Tapir 3D Seismic Program

The Tapir 3D seismic acquisition program was completed on April 10, 2023. Management expects that a final processed data set will be available within four to six weeks.

Corporate Update

Current corporate production with the Capella field shut in is approximately 2,635 BOPD. With the Capella field at full production, we estimate an additional 300 BOPD would be added to corporate production for a total of 2,935 BOPD. The Company expects production numbers will improve once the RCE-5 well has reached equilibrium.  On April 1, 2023, the Company's cash balance was US$12.1 million.

Marshall Abbott, CEO of Arrow commented:
"Initial production from the RCE-5 well has exceeded expectations. In addition to the thick pay zones encountered on the Carbonera C7 formation, additional pay zones currently behind pipe may provide further opportunities for production and reserve increases. Drilling and completion costs came in on budget and within the time frame expected."

"The RCE-4 and RCE-3 wells are currently producing better than expected and the Company is choking the wells back in an effort to manage the reservoir and discourage premature water production. Arrow has engaged the pumps on RCE-3 and RCE-4 and is slowly increasing production as the wells are more stable."

"Arrow is now moving the rig to the Carrizales Norte pad to begin drilling the CN-1 well towards the end of April. This is an exciting time for Arrow, and we look forward to providing further updates on our progress."

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