Calgary, Alberta (FSCwire) - ARROW Exploration Corp. (“Arrow” or the “Company”) (TSXV: AXL) is pleased to provide an operational and financial update. The Company shares resume trading under the name Arrow Exploration Corp. (TSXV:AXL) today (October 5, 2018). 

Operational Update

Following the announcement on October 1, 2018 of the close of the reverse takeover of Front Range Resources (TSXV: FRK) and asset acquisitions, total corporate production is approximately 1,500 boe/d of stable, low-decline production with Colombia crude oil production contributing 1,375 bbl/d.

In the Llanos Basin, crude oil production is currently 855 bbl/d. Arrow is proceeding with preparations for the drilling of the company’s first exploration well, Danes-1, which will be drilled on the Llanos-23 Block. The drilling rig is currently moving to location and the Danes-1 well is expected to spud around October 21, 2018. The well is targeting a typical Llanos 3D-seismic defined multi-stacked-pay exploration prospect on the main Llanos-23 fault trend. Results from the well are expected before the end of November and proximity to the pipeline system on the block means a short, low cost tie-in with expected production shortly after completion.

In addition, a service rig is currently being sourced and following the drilling of Danes-1, Arrow anticipates a two month recompletion campaign beginning in December on Llanos-23 initially targeting 4-5 wells with identified bypassed oil zones. On the acquired Tapir Block, located adjacent to Llanos-23, construction work for the drilling location of the 3D-seismic defined Rio Cravo Este prospect is expected to commence in January, 2019 with an expected spud date in February.

In the Middle Magdalena Valley (MMV), oil production is approximately 275 bbl/d from the Oso Pardo field (100% working interest) and the Mono Arana field (in the VMM-2 Block, where Arrow has a 40% working interest). A workover in the Oso Pardo field is expected to commence shortly to replace a damaged bottomhole pump. On success of this operation, total corporate production should increase to approximately 1,600 boe/d. Arrow and its new partner, Gran Tierra Energy Inc. (TSX:GTE), have begun formulating plans for Mono Arana and expect to finalize those plans in the near future. Gran Tierra recently acquired this asset in Colombia.

In the Caguan/Putumayo Basin, Arrow has a 10% non-operated interest in the Capella oil field on the Ombu Block, currently producing approximately 2,480 bbl/d (248 bbl/d net to Arrow). It is expected that the Company will meet with the operator soon to discuss future plans for this large heavy oil discovery.

“We are excited about the next six months of immediate activity in our Colombian oil portfolio with exploration prospects to be drilled plus low-risk well recompletions on Llanos-23. As 2019 proceeds, we will also see increasing activity in the Middle Magdalena Valley oil fields as we target production growth from these underdeveloped, previously discovered oil fields”, said CEO Gary Wine.

Financial Update

As previously announced, Arrow has US$4.4 million of working capital and management of Arrow has secured a non-binding letter of intent for a senior secured credit facility of US$20-25 million from a globally recognized lender and continues to work towards closing this facility in the near future.

Arrow Exploration Corporate Overview

With the recent closing of the previously announced transactions, the following summarizes key attributes of Arrow:

Notes:

(1)  As evaluated by DeGolyer & MacNaughton in the December 31, 2017 Reserves Assessment and Evaluation of certain oil and gas properties and as evaluated by Boury Global Energy Consultants Ltd. in the December 31, 2017 Reserves Assessment and Evaluation of certain oil and gas properties all as disclosed in the August 24, 2018 Information Circular filed on the Company’s SEDAR profile.

(2)  As evaluated by GLJ Petroleum Consultants Ltd. in the December 31, 2017 Reserves Assessment and Evaluation of certain oil and gas properties

(3)  Based on Canacol Reserves Report forecast prices for WTI: 2018: US$58.13/bbl, 2019: US$58.90/bbl, 2020: US$63.35/bbl and Boury 2018: US$57.00/bbl, 2019: US$60.00/bbl, 2020: US$63.00/bbl and GLJ AECO natural gas forecast prices for 2018: CAD$2.20/MMbtu, 2019: CAD$2.54/MMbtu, 2020: CAD$2.88/MMbtu. For reference purposes only, Brent prices estimated by Boury at the date of the Samaria Reserves Report were 2018: US$65.42/bbl, 2019: US$67.95/bbl, 2020: US$70.72/bbl.

(4)  Management estimates

Colombia asset highlights:

• High working interest assets with low royalties, multiple play types and contiguous and focused acreage in the Llanos Basin, Middle Magdalena Valley and Caguan/Putumayo Basin

• ANH-recognized Operator in Colombia

• High working interest land base and Brent-linked commodity price exposure yields attractive field netbacks

• Substantial underutilized processing and water disposal capacity (replacement value of US$30 million) in the Llanos Basin

• Organic growth opportunities across 148,000 contiguous net acres in the Llanos Basin with more than six drill ready exploration prospects with ongoing evaluation of additional prospects and leads.

• Relatively low-risk development opportunities in the Middle Magdalena Valley that are under-exploited due to collapse in oil prices shortly after discovery

Notes:

(1)  Management estimates

(2)  As evaluated by DeGolyer & MacNaughton in the December 31, 2017 Reserves Assessment and Evaluation of certain oil and gas properties and as evaluated by Boury Global Energy Consultants Ltd. in the December 31, 2017 Reserves Assessment and Evaluation of certain oil and gas properties all as disclosed in the August 24, 2018 Information Circular filed on the Company’s SEDAR profile.

(3)  Gran Tierra is the technical operator, Arrow’s subsidiary Carrao Energy S.A. is recognized as the contract operator by the ANH

Canada asset highlights:

• Operated 100% working interest in 56 contiguous sections (35,840 acres) of prospective Montney land, located at the south end of the Montney trend in Alberta

New Management Team and Board of Directors

With the closing of the transactions as announced on October 1, 2018, Arrow has a seasoned, hands-on management team and board of directors with an extensive track record in Colombia and operating experience across the E&P value chain. The following are the directors and executive officers of Arrow:

Bruce McDonald, Executive Chairman and Director

Bruce McDonald brings more than 25 years of corporate planning, investment banking, advisory and equity research in energy. He was formerly Global Head of Energy Investment Banking for Canaccord Genuity and previous to was Global Head of Energy Research. Mr. McDonald has extensive international energy financing experience including Colombia. Mr. McDonald is the founder of Arrow.

Gary Wine, Chief Executive Officer and Director

Gary Wine has a proven track record of finding oil with more than 35 years of industry experience. Prior to Arrow, he was the President and Chief Executive Officer of Pan African Oil and also Petrolifera Petroleum, where he was President and Chief Operating Officer. Mr. Wine has lived and worked internationally, predominantly in South America and has extensive experience in Colombia. Mr. Wine will be relocating to and establishing Arrow’s headquarters in Bogota, Colombia in the near future.

John (Jack) Scott, Chief Operating Officer

Mr. Scott is a Professional Engineer with 25 plus years of operations, management and executive experience in the oil and gas industry specializing in project development in Latin America. He was previously Chief Operating Officer and Country Manager of Petrominerales, based in Bogota, Colombia where he managed production in excess of 25,000 bbl/d.

John Newman, Chief Financial Officer

Mr. Newman has over 35 years of domestic and international oil and gas sector experience at the CFO and Director level including South America. He has 17 years of junior oil and gas company experience in Canada, including co-founding Reliable Energy and financial roles with Schlumberger in Africa, Europe, the North Sea and Canada. Mr. Newman holds a degree in Business (Accounting) from Curtin University and is a Fellow of CPA (Australia).

Phil Miller, Vice President, Exploration

Phil Miller is a geoscientist with over 35 years of experience managing exploration and development projects throughout Africa, the Middle East, North Sea and Latin America. Previously, Mr. Miller has held senior management roles with Pan African Oil, Nexen and Home Oil International.

Frederick Kozak, Vice President, Corporate Development

Frederick Kozak is a Professional Engineer with over 35 years of industry experience. Most recently, Mr. Kozak was Senior Vice President of Investor Relations for an oil company with production of more than 150,000 bbl/d in Colombia. Mr. Kozak was previously a top ranked international oil and gas equity research analyst.

In addition to Mr. McDonald and Mr. Wine, the following are directors of Arrow:

Additional Information

For further information, please contact:

Frederick Kozak, VP Corporate Development
Telephone: (403) 606-3165 Email: [email protected]

Gary Wine, President & Chief Executive Officer
Telephone: (403) 389-7079 Email: [email protected]

John Newman, Chief Financial Officer
Telephone: (403) 660-3468 Email: [email protected]

Bruce McDonald, Executive Chairman
Telephone: (403) 606-9784 Email: [email protected]

An updated corporate presentation will be posted shortly on Arrow’s website: www.arrowexploration.ca

Reader Advisory

The TSXV has neither approved nor disapproved of the contents of this news release. This news release is not an offer of the securities for sale in the United States. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from registration. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

Neither the TSXV nor its regulation services provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “objective”, “ongoing”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends” and similar expressions are intended to identify forward-looking statements or information. In particular this news release contains forward-looking statements and information relating to the drilling and spudding of the exploration prospect on Llanos-23 (Danes-1) and timing thereof; workover program and timing thereof; exploration well on the Rio Cravo Este prospect on the Tapir Block and timing thereof; and recompletion activities and timing thereof. Although Arrow believes that the expectations and assumptions on which the forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because Arrow cannot give any assurances that they will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. The forward-looking statements and information is based on certain key expectations and assumptions made by management of Arrow, including expectations and assumptions concerning: Arrow’s ability to develop the assets and obtain the benefits thereof; the ability to efficiently integrate the assets; prevailing and future commodity prices, exchange rate, interest rates, inflation rates, applicable royalty rates and tax laws; future production rates and estimates of operating costs; performance of existing and future wells; reserves volumes; anticipated timing and results of capital expenditures in carrying out planned activities; the state of the economy and the exploration and production business; the regulatory framework regarding royalties, taxes and environmental laws; results of operations; performance; business prospectus and opportunities. Actual results could differ materially from those currently anticipated due to a number of factors and risk. These include but are not limited to: unforeseen difficulties in integrating the assets in Arrow’s operations; risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses; failure to obtain necessary regulatory approvals for planned operations; health, safety and environmental risks; uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures; volatility of commodity prices, currency exchange rate fluctuations; imprecision of reserve estimates; and competition from other explorers) as well as general economic conditions, stock market volatility, and the ability to access sufficient capital. Arrow cautions that the foregoing list of risks and uncertainties is not exhaustive. These risks and other risks are set out in more detail in its Annual Information Form for the year ended December 31, 2017 and the management information circular and proxy statement dated August 24, 2018.

In addition, the reader is cautioned that historical results are not necessarily indicative of future performance. The forward-looking statements and information contained in this news release are made as of the date hereof and Arrow undertakes no obligation to update publicly or revise any forward-looking statement or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

To view the original release, please click here

To follow ARROW Exploration Corp. on your favorite social media platform or financial websites, please click on the icons below.

Maximum News Dissemination by FSCwire. https://www.fscwire.com

Copyright © 2018 FSCwire