Arrow Exploration Corp. Announces Definitive Agreement to Sell a Partial Working Interest in the VMM-2 Block in Colombia to  Boost Financial Flexibility

Source Press Release
Company Arrow Exploration Corp. 
Tags Asset Deals, Deals, Upstream Activities
Date December 10, 2018

ARROW Exploration Corp. (operating in Colombia via a Colombian branch of its 100% owned subsidiary, Carrao Energy S.A.) (“Arrow" or the “Company") (TSXV: AXL) is pleased to announce it has signed a definitive agreement (the “Agreement") for the sale of both a 20% working interest in the Shallow Section (defined below) and a 46.9% working interest in the Deeper Section (defined below) in the VMM-2Block located in the Middle Magdalena Basin in Colombia for the sum of US $5 million, subject to adjustments (the “Transaction"). The Transaction provides an important boost to Arrow's financial flexibility while retaining exposure to results of an expected capital program on the VMM-2 Block in 2019. Arrow’s net production is estimated to be reduced by approximately 85 barrels of oil per day (“bbl/d") as a result of the Transaction as at the Effective Date for the Agreement of December 1st, 2018.

The Transaction is expected to close on or about December 14, 2018. Following closing of this Transaction, Arrow will retain a 20% working interest in both the Shallow Section and the Deeper Section in the VMM-2 Block. The formal transfer of legal ownership of the working interests contemplated in the Agreement is subject to ultimate approval by the Agencia Nacional de Hidrocarburos (“ANH").

For purposes of this press release, the Shallow Section in the VMM-2 Block is defined as the portion of the VMM-2 contract area at a depth greater than 150ft above the top of the “La Luna" formation, and the Deeper Section is defined as the portion of the contract area below the Shallow Section.

Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd