REG - Arrow Exploration - Operations Update, PDMR Exercise of Options & TVR
23/12/2022 07:00
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RNS Number : 6941K Arrow Exploration Corp. 23 December 2022
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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:
Options Exercised Market Price at Exercise
Strike Price
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, 2023 June 21, 2023
527,222 December 21, 2024 June 21, 2024
527,222 December 21, 2025 June 21, 2025
Gage Jull Director 505,000 December 21, 2023 June 21, 2023
505,000 December 21, 2024 June 21, 2024
505,000 December 21, 2025 June 21, 2025
Ravi Sharma Director 144,444 December 21, 2023 June 21, 2023
144,444 December 21, 2024 June 21, 2024
144,445 December 21, 2025 June 21, 2025
Anthony Zaidi Director 144,444 December 21, 2023 June 21, 2023
144,444 December 21, 2024 June 21, 2024
144,445 December 21, 2025 June 21, 2025
Joe McFarlane Director 505,000 December 21, 2023 June 21, 2023
505,000 December 21, 2024 June 21, 2024
505,000 December 21, 2025 June 21, 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 +44 (0)20 7523 8000
James Asensio
Gordon Hamilton
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 /Amendment Initial notification
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 financial instrument, type of instrument Common Shares of nil par value
Identification code
ISIN: CA04274P1053
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 price Options
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 /Amendment Initial notification
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 financial instrument, type of instrument Common Shares of nil par value
Identification code
ISIN: CA04274P1053
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 price Options
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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