CALGARY, Aug. 1, 2019 /CNW/ - ARROW
Exploration Corp. ("Arrow" or the "Company") (TSXV: AXL) is pleased
to announce an operational update as well as revised terms of its
$5 million Promissory Note with
Canacol Energy ("Canacol") and the appointment of a new board
member to fill an existing vacancy.
Operational Update
Arrow's current corporate production is approximately 1,800
boe/d consisting of 1,700 bbl/d of oil production in Colombia which receives Brent-linked pricing
and 100 boe/d from the Company's legacy natural gas assets in
Alberta. The Company's
Rio Cravo Este well ("RCE-1") is
currently producing approximately 400 bbl/d of 28.5-degree API oil
on a gross basis (200 bbl/d net to Arrow), as limited by water
handling capacity. Arrow is currently implementing a water handling
solution which is expected to reduce RCE-1 operating costs by
approximately 30% and increase production from the RCE-1 well. The
improved water handling solution is anticipated to be operational
during the first half of August, 2019 and Arrow intends to release
second quarter financial results on or before August 29, 2019.
Revised Promissory Note Terms
Arrow is pleased to announce that on July
31, 2019, Arrow and Canacol entered into a Second Amended
and Restated Promissory Note (the "Note") to revise the terms of
the April 29, 2019 Amended and
Restated Promissory Note. The amendments provide a deferral of
principal payments to commence on October 1,
2020 and which shall be paid in six monthly instalments such
that all Note obligations are paid in full on or before
March 1, 2021. The amendments also
provide that the Company will repay all interest accrued to
July 31, 2019 (totaling $628,767) by December 31,
2019, and that commencing on September 1, 2019 the Company will make monthly
interest-only payments on the principal sum then outstanding plus
the outstanding accrued interest balance.
The interest payable on the Note remains unchanged at 15% per
annum, and the Note continues to be repayable at any time without
penalty. The Company has now granted a general security interest to
Canacol for the obligations under the Note which will be
subordinated to second position in the event the Company secures
additional financing.
John Newman, CFO of Arrow
commented, "We're extremely pleased to have amended the terms of
the Note with Canacol. The revised terms represent a significant
positive catalyst as they provide Arrow with flexibility to attract
first lien debt and keep capital in the company to grow our
production and cash flow."
Appointment of New Director
Arrow is pleased to announce the appointment of Mr. Juan Carlos Salazar to its Board of Directors,
subject to the approval of the TSX Venture Exchange. Mr. Salazar is
a practicing lawyer in Colombia
with an impressive academic and professional resume. Mr. Salazar is
a graduate of the Los Andes Law School and holds a post graduate
degree from the London School of Economics
(Political Science). Prior to founding the law firm 'Salazar
& Asociados Abogados' in June of 2000, Mr. Salazar worked as a
Delegate of the Attorney General of Colombia, as an Advisor to the General
Director of the Colombian Institute of International Trade, and was
Managing Partner of Andersen Legal. In addition to his position as
a well-respected litigator in Bogota, Mr. Salazar has a distinguished
academic career as a Professor of the Universidad Externado de
Colombia (Oil and Gas),
Universidad de la Sabana (Strategic Tax Planning), and Universidad
de Los Andes (International Law) with numerous publications
credited to his name.
Bruce McDonald, CEO of Arrow
commented, "We're thrilled to add an individual of Mr. Salazar's
caliber to our Board of Directors. Mr. Salazar is an extremely
well-respected member of Bogota's
legal community with a long and storied career assisting
international companies operating in country. We look forward to
working with him as we continue our growth in Colombia."
About ARROW Exploration
Arrow Exploration Corp. (operating in Colombia via its 100% owned subsidiary Carrao
Energy S.A.) is a publicly-traded company with a portfolio of
premier Colombian oil assets that are underexploited, underexplored
and offer high potential growth. The Company's business plan is to
rapidly expand oil production from some of Colombia's most active basins, including the
Llanos, Middle Magdalena Valley (MMV) and Caguan/ Putumayo Basin.
The asset base is operated with high working interests, and the
Brent-linked light oil pricing exposure combines with low royalties
to yield attractive potential operating margins. Arrow's seasoned
team is led by a hands-on and in-country executive team supported
by an experienced board. Arrow is listed on the TSX Venture
Exchange under the symbol "AXL".
Reader Advisory
Neither the TSX Venture Exchange (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.
This press release contains certain forward-looking
statements within the meaning of applicable securities laws.
Forward-looking statements are frequently characterized by words
such as "plan", "expect", "project", "target", "intend", "believe",
"anticipate", "estimate" and other similar words, or statements
that certain events or conditions "may", "should" or "will" occur.
In particular, this news release contains forward-looking
statements and information relating to water handling solutions and
the reduction of operating costs at RCE-1 as well as statements
related to anticipated production from the RCE-1 well. Although
Arrow believes that 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 information and statements because Arrow cannot
give any assurances that they will prove to be correct.
Forward-looking statements are based on the opinions and estimates
of management at the date the statements are made and are subject
to a variety of risks and uncertainties and other factors that
could cause actual events or results to differ materially from
those projected in the forward-looking statements, including but
not limited to future development and production, expectations and
assumptions concerning Arrow's ability to implement water handling
solutions and obtain the benefits thereof, results of operations,
performance, delays or changes in plans with respect to
exploration, development or capital expenditure, and health, safety
and environmental risks. The Company cannot assure that actual
results will be consistent with these forward-looking statements.
They are made as of the date hereof and are subject to change and
the Company assumes no obligation to revise or update them to
reflect new circumstances, except as required by law.
SOURCE ARROW Exploration Corp.