Arrow Exploration Announces Third Quarter 2020 Financial and Operating Results

Arrow Exploration Announces Third Quarter 2020 Financial and Operating Results

CALGARY, Alberta, Nov. 25, 2020 (GLOBE NEWSWIRE) -- ARROW Exploration Corp. (“Arrow” or the “Company”) (TSXV: AXL) is pleased to announce the filing of its unaudited Financial Statements and MD&A for the quarter-ended September 30th, 2020, which are available on SEDAR (www.sedar.com). The financial and operating highlights for the quarter include the following:

FINANCIAL AND OPERATING HIGHLIGHTS



(in United States dollars, except as otherwise noted)
Three months ended
September 30, 2020
 Nine months ended
September 30, 2020
 Three months ended
September 30, 2019
 
Total natural gas and crude oil revenues, net of royalties 207,934  4,952,425  6,320,471 
    
Funds flow from (used in) operations (1) (1,095,338) (2,471,562)1,500,573 
Per share – basic ($) and diluted ($) (0.02) (0.04)0.02 
    
Net income (loss) (1,390,746) (24,280,091)(1,325,939)
Per share – basic ($) and diluted ($) (0.02) (0.35)(0.02)
Adjusted EBITDA (1) (1,090,974) (1,692,816)1,993,407 
Weighted average shares outstanding – basic and diluted 68,674,602  68,674,602  68,674,602 
Common shares end of period 68,674,602  68,674,602  68,674,602 
Capital expenditures 146,584  146,584  2,012,557 
Cash and cash equivalents 91,248   91,248  167,383 
Current Assets 5,119,909  5,119,909  8,771,087 
Current liabilities 16,206,286  16,206,286  12,002,329 
Working capital (deficit) (1) (11,086,377) (11,086,377)(3,231,242)
Long-term portion of restricted cash (2) 441,284   441,284  436,791 
Total assets 46,702,911  46,702,911  73,870,261 
    
Operating   
    
Natural gas and crude oil production, before royalties   
Natural gas (Mcf/d)532 557 598 
Natural gas liquids (bbl/d)7 6 6 
Crude oil (bbl/d)9 470 1,693 
Total (boe/d)104 569 1,799 
    
Operating netbacks ($/boe) (1)   
Natural gas ($/Mcf)($0.17)($0.06)($0.72)
Crude oil ($/bbl)($7.18)$11.64  $23.26 
Total ($/boe)($5.57)$10.36  $21.68 
 
(1) Non-IFRS measures – see “Non-IFRS Measures” section within the MD&A
(2) Long term restricted cash not included in working capital
 

Bridge Loan

In addition Carrao Energy S.A. (“Carrao”), the Company’s subsidiary, has repaid the bridge loan (“Bridge Loan”) previously provided to Carrao by Colombia Energy Development Co. (“CEDCO”), an affiliate of COG Energy Ltd., which is the purchaser of the LLA-23 Block. The bridge loan was previously announced by the Company on October 22nd, 2020.

About ARROW Exploration

Arrow Exploration Corp. (operating in Colombia via a branch of its 100% owned subsidiary Carrao Energy S.A.) is a publicly-traded company with a portfolio of premier Colombian oil assets that are under-exploited, under-explored and offer high potential growth. The Company’s business plan is to expand oil production from some of Colombia’s most active basins, including the Llanos, Middle Magdalena Valley (MMV) and Putumayo Basin. The asset base is predominantly 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 50% interest in the Tapir Block is contingent on the assignment by Ecopetrol SA of such interest to Arrow. Arrow’s seasoned team is led by a hands-on executive team supported by an experienced board. Arrow is listed on the TSX Venture Exchange under the symbol “AXL”.

For further information contact:

Marshall Abbott
Chief Executive Officer
[email protected]
(403) 651-5995

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.

Forward-looking Statements

This news release contains certain statements or disclosures relating to Arrow that are based on the expectations of its management as well as assumptions made by and information currently available to Arrow which may constitute forward-looking statements or information (“forward-looking statements”) under applicable securities laws. All such statements and disclosures, other than those of historical fact, which address activities, events, outcomes, results or developments that Arrow anticipates or expects may, could or will occur in the future (in whole or in part) should be considered forward-looking statements. In some cases, forward-looking statements can be identified by the use of the words “continue”, “expect”, “opportunity”, “plan”, “potential” and “will” and similar expressions. The forward-looking statements contained in this news release reflect several material factors and expectations and assumptions of Arrow, including without limitation, Arrow’s evaluation of the impacts of COVID-19, the potential of Arrow’s Colombian assets to resume production, and Arrow’s business plan to expand oil production and achieve attractive potential operating margins. Arrow believes the expectations and assumptions reflected in the forward-looking statements are reasonable at this time but no assurance can be given that these factors, expectations and assumptions will prove to be correct.

The forward-looking statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The forward-looking statements contained in this news release are made as of the date hereof and the Company undertakes no obligations to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.