Arrow Buys into Canadian Oil Production with Alberta Asset Acquisition

Arrow Exploration Corp., a high-growth operator in Colombia's hydrocarbon basins, has made its first foray into Canadian oil production by acquiring a 100% working interest in an oil-producing property in Alberta.

The Thorsby asset, which spans approximately 9,501 net acres of land, has current production of 550 barrels of oil equivalent per day (boepd) with low decline rates of 15%. A third-party reserve report estimates the asset's total proved reserves at 4.973 million boe and its total proved plus probable reserves at 7.537 million boe.

The purchase price for the Thorsby property is $12.15 million CAD (approximately $8.9 million USD), which will be funded directly from Arrow's cash reserves. The asset has generated approximately $2.0 million CAD of operating income in the last 12 months and boasts a pre-tax net present value (NPV) of $38 million CAD for its 1P reserves and $71 million CAD for its 2P reserves.

Arrow's management plans to deploy a development program across the lower Cretaceous Sparky reservoir, which has been identified as having significant original oil in place with secondary recovery potential. The company aims to drill 22 low-cost, quick payout wells on the property, each expected to cost approximately $2.2 million CAD.