Arrow Expands Canadian Portfolio with Thorsby Acquisition

Arrow Exploration Corp., an AIM-listed exploration and production firm, has expanded its Canadian portfolio with the acquisition of a producing oil and gas property in central Alberta's Thorsby area.

The company announced on Friday that it has purchased the asset for CAD $12.15m (£6.66m), funded entirely from existing cash reserves.

The acquired property produces around 550 barrels of oil per day with low decline rates of about 15%. The field generated roughly CAD $2.0m (£1.06m) in operating income over the past year, and comes with 4.97m boe of proved reserves and 7.54m boe of proved-plus-probable reserves.

A third-party report valued those reserves at CAD $38m (£20.24m) and CAD $71m (£37.82m) on a pre-tax NPV10 basis.