TIDMAXL
RNS Number : 6941K
Arrow Exploration Corp.
23 December 2022
NOT FOR RELEASE, DISTRIBUTION, PUBLICATION, DIRECTLY OR
INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO OR FROM THE UNITED
STATES, AUSTRALIA, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER
JURISDICTION WHERE TO DO SO MIGHT CONSTITUTE A VIOLATION OF THE
RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION.
OPERATIONS UPDATE, PDMR EXERCISE OF OPTIONS AND TVR
CALGARY, December 23, 2022 - Arrow Exploration Corp. (AIM: AXL;
TSXV: AXL), the high-growth operator with a portfolio of assets
across key Colombian hydrocarbon basins, is pleased to provide an
operations update and report on the granting and exercise of
options by certain Directors and PDMRs.
Operations Update
Drilling Rig Mobilized to Rio Cravo Este Multiwell Pad
Arrow has initiated the drilling rig move to Rio Cravo Este
(RCE) to further exploit the Carbonera Sandstone reservoir. Three
additional infill wells will be drilled in Q1 2023 with RCE-3
expected to spud in January 2023. RCE-4 and RCE-5 will be drilled
in sequence. The drilling rig was initially delayed due to a
different operator experiencing operational issues. The infill
wells have similar productivity potential to RCE-2 and RCS-1 which
are currently producing 850 BOPD net, well above forecasted rates.
RCE-2 was paid out in 37 days with an onstream net cost of
$4.2MM.
Upon completion of the RCE-3, RCE-4 and RCE-5 wells, the Company
is contemplating drilling two to three additional wells into the
Gacheta Sandstone reservoir in the fault bounded RCE structure.
RCE-2 tested rates exceeding 700 BOPD gross from the Gacheta
Sandstone. Dedicated Gacheta wells would likely spud in Q3
2023.
Arrow has also completed preparation of an additional field to
be used for production water dispersion. In combination, the two
fields are expected to meet the Company's water disposal
requirements until a water disposal well is drilled which is
expected mid-2023.
Carrizales Norte Operations
Earlier this month Arrow began construction of the road, pad and
cellars for the three planned Carrizales Norte (CN) wells which are
expected to be drilled sometime between March and June 2023. The
road and pad being constructed are being built to meet all weather
conditions. This will allow the Company to continue capital
activities as well as move production in the summer and winter
seasons.
The Company is in discussions with a separate drilling company
to bring in a second drilling rig to drill CN-1, CN-2 and CN-3.
This would advance the drilling of Carrizales Norte by
approximately six weeks.
3D Seismic Project, Tapir Block
Arrow has commenced the 134 square kilometer 3D seismic project
on the Tapir block. Hiring in the local communities and the
required surface land work began on schedule. The 3D seismic
project is scheduled to be completed in Q1 2023. This 3D survey
will define multiple fault-bounded structures which are the
prevailing trapping mechanisms in the Llanos Basin. Existing 2D
seismic data has indicated multiple leads on the Tapir Block and
the 3D will resolve existing and additional leads and prospects.
Initial drilling on defined low risk prospects could occur as early
as Q4 2023.
Workover Program
Arrow is continuing to recomplete existing wells that display
additional production upside in unperforated zones. This program
has been successful in both the RCE field and the Oso Pardo Field.
The Company is also considering additional perforations on RCS-1
once RCE-3 RCE-4 and RCE-5 are completed.
Balance Sheet
Arrow has a healthy balance sheet with all operations being
supported by cash on hand and operational cash flow. Cash balance
as of 1 December 2022 was $14MM.
Options Exercised
Arrow announces that certain Directors and Management exercised
2,983,332 options at GBP 0.07625 per common share of no par value
("Common Share"). A summary of the options exercised is as
follows:
Market Price
Options Exercised Strike Price at Exercise
Marshall Abbott 816,666 GBP 0.07625 GBP 0.1620
------------------ --------------- -------------
Gage Jull 750,000 GBP 0.07625 GBP 0.1620
------------------ --------------- -------------
Ravi Sharma 333,333 GBP 0.07625 GBP 0.1620
------------------ --------------- -------------
Anthony Zaidi 333,333 GBP 0.07625 GBP 0.1620
------------------ --------------- -------------
Joe McFarlane 750,000 GBP 0.07625 GBP 0.1620
------------------ --------------- -------------
Total 2,983,332
------------------ --------------- -------------
The option exercise was accepted by the Company on December 21,
2022 once legal advice was received. The options, which were set to
expire mid-2023, have been exercised at this time since the Company
is expected to be continually operationally active over the next
six months with limited periods when Directors would be able to
exercise options. The option holders elected to use a "cashless"
exercise of options. Using this method, which is permissible under
the terms of the Company's share option plan, the Company pays the
option holder the value of the option (market price less strike
price) from cash reserves. Accordingly, no new shares were issued
for the option exercise.
Following the exercise of the options referred to above, there
has accordingly been no change in the holding of PDMR's and
Directors. Mr. Abbott holds 3,579,802 Common Shares (representing
1.6% of the issued Common Shares), Mr. Jull holds 3,995,672 Common
Shares (1.8 %), Mr. McFarlane holds 3,865,629 Common Shares (1.8
%), Mr. Sharma holds 13,370 Common Shares (0.0 %) and Mr. Zaidi
holds 0 Common Shares (0.0 %).
Options Granted
The Board of Directors granted 5,478,332 options on 21 December
2022, pursuant to the Company's Stock Option Plan to certain
Directors and senior management as detailed below:
Name Role Options Granted Vesting Expiry
Marshall Abbott Director 527,222 December 21, June 21,
2023 2023
--------- ---------------- ------------- ---------
527,222 December 21, June 21,
2024 2024
--------- ---------------- ------------- ---------
527,222 December 21, June 21,
2025 2025
--------- ---------------- ------------- ---------
Gage Jull Director 505,000 December 21, June 21,
2023 2023
--------- ---------------- ------------- ---------
505,000 December 21, June 21,
2024 2024
--------- ---------------- ------------- ---------
505,000 December 21, June 21,
2025 2025
--------- ---------------- ------------- ---------
Ravi Sharma Director 144,444 December 21, June 21,
2023 2023
--------- ---------------- ------------- ---------
144,444 December 21, June 21,
2024 2024
--------- ---------------- ------------- ---------
144,445 December 21, June 21,
2025 2025
--------- ---------------- ------------- ---------
Anthony Zaidi Director 144,444 December 21, June 21,
2023 2023
--------- ---------------- ------------- ---------
144,444 December 21, June 21,
2024 2024
--------- ---------------- ------------- ---------
144,445 December 21, June 21,
2025 2025
--------- ---------------- ------------- ---------
Joe McFarlane Director 505,000 December 21, June 21,
2023 2023
--------- ---------------- ------------- ---------
505,000 December 21, June 21,
2024 2024
--------- ---------------- ------------- ---------
505,000 December 21, June 21,
2025 2025
--------- ---------------- ------------- ---------
All options granted have an exercise price equal to the market
closing price on 21 December 2022, GPB 0.1675. The options will
vest one third each year for the next three years. The options will
expire six months after they vest.
Total Voting Rights
The Company also announces that it has issued 500,000 Common
Shares (the "New Common Shares") pursuant to the exercise of
warrants issued at the Company's IPO in October 2021. All of the
New Common Shares issued during the month were issued under the
Company's existing block listing entitlement. The Company does not
anticipate any further shares being issued under the block listing
throughout the remainder of December.
Following the issue of the New Common Shares the issued share
capital of the Company comprises 218,401,931 common shares with one
vote per share. Therefore, this figure can be used by shareholders
as the denominator for the calculations by which to determine if
they are required to notify their interest in, or a change to their
interest in, the Company under the FCA's Disclosure and
Transparency Rules.
For further Information, contact:
Arrow Exploration
Marshall Abbott, CEO +1 403 651 5995
Joe McFarlane, CFO +1 403 818 1033
Brookline Public Relations,
Inc.
Shauna MacDonald +1 403 538 5645
Canaccord Genuity (Nominated
Advisor and Joint Broker)
Henry Fitzgerald-O'Connor
James Asensio
Gordon Hamilton +44 (0)20 7523 8000
Auctus Advisors (Joint Broker)
Jonathan Wright (Corporate) +44 (0)7711 627449
Rupert Holdsworth Hunt (Broking)
Camarco (Financial PR)
Georgia Edmonds +44 (0)20 3781 8331
Rebecca Waterworth
Billy Clegg
About Arrow Exploration Corp.
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
underexploited, 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 AIM market of the London Stock Exchange and
on TSX Venture Exchange under the symbol "AXL".
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 and/or Canadian assets (or any of
them individually), the prices of oil and/or natural gas, and
Arrow's business plan to expand oil and gas 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.
Details of the person discharging managerial responsibilities
/ person closely associated
Name 1. Marshall Abbott
2. Gage Jull
3. Joe McFarlane
4. Ravi Sharma
5. Anthony Zaidi
-----------------------------------------------
Reason for the notification
Position/status 1. Director
2. Director
3. PDMR (non-director)
4. Director
5. Director
-----------------------------------------------
Initial notification Initial notification
/Amendment
-----------------------------------------------
Details of the issuer, emission allowance market participant,
auction platform, auctioneer
or auction monitor
Name Arrow Exploration Corp.
-----------------------------------------------
LEI 9845000FDF0856QD9031
-----------------------------------------------
Details of the transaction(s): section to be repeated for (i)
each type of instrument;
(ii) each type of transaction; (iii) each date; and (iv) each
place where transactions have been conducted
Description of the Common Shares of nil par value
financial instrument, ISIN: CA04274P1053
type of instrument
Identification code
Nature of the transaction 1. Exercise of options for cash
2. Exercise of options for cash
3. Exercise of options for cash
4. Exercise of options for cash
5. Exercise of options for cash
Price(s) and volume(s) Exercise
------------------- -----------------------
Name Exercise Options
price
------------------- ------------- --------
1. Marshall
Abbott GBP 0.07625 816,666
------------------- ----------------------------------------- --------
2. Gage Jull GBP 0.07625 750,000
------------------- ----------------------------------------- --------
3. Joe McFarlane GBP 0.07625 750,000
------------------- ----------------------------------------- --------
4. Ravi Sharma GBP 0.07625 333,333
------------------- ----------------------------------------- --------
5. Anthony
Zaidi GBP 0.07625 333,333
------------------- ----------------------------------------- --------
Aggregated information N/A
Date of the transaction 1. 21 December 2022
2. 21 December 2022
3. 21 December 2022
4. 21 December 2022
5. 21 December 2022
Place of the transaction Outside a trading venue
-----------------------------------------------
Details of the person discharging managerial responsibilities
/ person closely associated
Name 6. Marshall Abbott
7. Gage Jull
8. Joe McFarlane
9. Ravi Sharma
10. Anthony Zaidi
-----------------------------------------------
Reason for the notification
Position/status 6. Director
7. Director
8. PDMR (non-director)
9. Director
10. Director
-----------------------------------------------
Initial notification Initial notification
/Amendment
-----------------------------------------------
Details of the issuer, emission allowance market participant,
auction platform, auctioneer
or auction monitor
Name Arrow Exploration Corp.
-----------------------------------------------
LEI 9845000FDF0856QD9031
-----------------------------------------------
Details of the transaction(s): section to be repeated for (i)
each type of instrument;
(ii) each type of transaction; (iii) each date; and (iv) each
place where transactions have been conducted
Description of the Common Shares of nil par value
financial instrument, ISIN: CA04274P1053
type of instrument
Identification code
Nature of the transaction 6. Grant of stock options
7. Grant of stock options
8. Grant of stock options
9. Grant of stock options
10. Grant of stock options
Price(s) and volume(s)
------------------ ------------------------
Name Exercise Options
price
------------------ ------------ ----------
6. Marshall
Abbott GBP 0.1675 1,581,666
------------------ ---------------------------------------- ----------
7. Gage Jull GBP 0.1675 1,515,000
------------------ ---------------------------------------- ----------
8. Joe McFarlane GBP 0.1675 1,515,000
------------------ ---------------------------------------- ----------
9. Ravi Sharma GBP 0.1675 433,333
------------------ ---------------------------------------- ----------
10. Anthony
Zaidi GBP 0.1675 433,333
------------------ ---------------------------------------- ----------
Aggregated information N/A
Date of the transaction 6. 21 December 2022
7. 21 December 2022
8. 21 December 2022
9. 21 December 2022
10. 21 December 2022
Place of the transaction Outside a trading venue
-----------------------------------------------
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END
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