en.Wedoany.com Reported - Dimension News, August 14 – Arrow Exploration Corp. (AIM: AXL; TSXV: AXL) announced the acquisition of a 100% working interest in producing oil and gas assets in the Thorsby area of central Alberta, Canada,for a purchase price of C$12.15 million (approximately US$8.9 million), fully funded from the company's cash reserves.
The assets currently produce 550 barrels of oil equivalent per day and generated approximately C$2.0 million in operating revenue over the past 12 months. A third-party reserves report (effective December 31, 2025) estimates proved reserves (1P) at 4.973 million barrels of oil equivalent and proved plus probable reserves (2P) at 7.537 million barrels of oil equivalent. On a before-tax net present value basis discounted at 10%, the 1P value is C$38.0 million (approximately US$27.0 million) and the 2P value is C$71.0 million (approximately US$51.0 million). Arrow is also assuming C$8.7 million (approximately US$6.3 million) in abandonment obligations associated with the assets.
The assets comprise 9,501 net acres with a 100% working interest, located approximately 200 kilometers north of Calgary, with all lands and associated infrastructure acquired as part of the transaction. According to data from the Alberta Energy Regulator, the block holds approximately 55 million stock-tank barrels of original oil in place, with a recovery factor to date of only 3%. The primary producing zone is the Lower Cretaceous Sparky reservoir, with gross pay up to 25 meters and an average net pay of 15 meters. Management has identified 22 low-cost development drilling locations on the assets.
Arrow CEO Marshall Abbott stated that the Thorsby acquisition represents a portfolio of low-risk, high-return development drilling opportunities. The company plans to drill two-mile horizontal wells with an estimated cost of approximately C$2.2 million per well, with three wells planned per pad. Sparky wells deliver initial production of approximately 300 barrels per day, with low decline rates and rapid payback. Arrow currently has no debt.
This acquisition marks Arrow's first producing asset outside its core holdings in Colombia. The company has been continuously drilling in the Tapir block in Colombia in 2026, with the recent Icaco 3 well confirming up to four hydrocarbon-bearing intervals.
