Arrow Expands into Canadian Oil with Thorsby Asset Purchase

Arrow Exploration Corp has made its first foray into Canadian oil production with the acquisition of a 100% working interest in an Alberta property for CAD $12.15 million. The Thorsby asset, situated 124 miles north of Calgary, currently produces 550 barrels of oil equivalent per day (boepd) and boasts a proven reserve base.

The deal closed with Arrow still debt-free, using cash on hand to fund the acquisition. This move stands out in an industry where junior oil companies often strain their finances to finance purchases. The Thorsby property covers 9,501 net acres and comes with associated infrastructure and decommissioning liabilities of CAD $8.7 million.

The asset has been generating cash over the last 12 months, producing approximately CAD $2.0 million in operating income after royalties and workovers. Arrow's management sees Thorsby as a 'low-risk, exceptional return inventory suite of development drilling opportunities.' The company plans to focus on the Lower Cretaceous Sparky Formation with two-mile lateral horizontal wells at an estimated cost of CAD $2.2 million per well.