Arrow Expands in Central Alberta with US$8.9 Million Acquisition

Arrow Exploration Corp. (AXL:TSX.V; AXL:LSE) has expanded its oil and gas production in Central Alberta by acquiring a 100% working interest in a 550 boe/d producing property at Thorsby for US$8.9 million.

The asset holds approximately 5 million boe of 1P reserves, approximately 7.5 million boe of 2P reserves, and includes 9,501 net acres of prospective land. Current production is 27% liquids, but the 1P and 2P reserves are 55% oil and liquids.

Stephane Foucaud of Auctus Advisors LLP believes that few bidders were interested in an asset of this modest size due to its small size. However, Arrow's CA$90 million of Canadian tax losses significantly enhance the value of the acquisition to the company.