Arrow Exploration Announces 2019 Year-End Audited Financial Statements and MD&A, and Filing of 2019 Year-End Reserve Report

Source Company Press Release
Company Arrow Exploration Corp.
Tags Corporate: Corporate Results, Guidance, Overview/Strategy, Country: Canada, Financial - Costs & Metrics: Capital Expenditures
Date June 02, 2020

ARROW Exploration Corp. (“Arrow” or the “Company”) (TSXV: AXL) is pleased to announce the filing of its 2019 year-end audited Financial Statements and MD&A, and the filing of its 2019 year-end reserve report, all of which are available on SEDAR (sedar.com).

FINANCIAL AND OPERATING HIGHLIGHTS

(in United States dollars, except as otherwise noted)  Three months
ended
December 31,
2019 
Year ended
December 31,
2019 
Three months
ended
December 31,
2018 
Year ended
December 31,
2018 
Total natural gas and crude oil revenues, net of royalties    5,585,531      25,440,370      5,911,425      6,077,423   
         
Funds flow from (used in) operations (1)    (165,879    3,281,216       (855,321     (2,671,986 
Per share – basic ($) and diluted ($)    (0.00    0.05      (0.01    (0.04 
         
Net income (loss)     (2,089,036     (5,976,895    1,242,936      (665,123 
Per share – basic ($) and diluted ($)    (0.03     (0.09    $0.02      ($0.01 
Adjusted EBITDA (1)     (126,893    5,206,566      1,120,369       (693,687 
Weighted average shares outstanding – basic and diluted    68,674,602      68,674,602      68,674,602      68,674,602   
Common shares end of period    68,674,602      68,674,602      68,674,602        68,674,602   
Capital expenditures     (171,138    9,414,464      7,007,580      7,007,580   
Cash and cash equivalents    1,085,655      1,085,655      1,994,233      1,994,233   
Current Assets    7,811,889      7,811,889      8,599,160      8,599,160   
Current liabilities    10,675,530      10,675,530      17,157,942      17,157,942   
Working capital (deficit) (1)     (2,863,641     (2,863,641    (8,558,782    (8,558,782 
Long-term portion of restricted cash (2)    449,288      449,288      3,154,839      3,154,839   
Total assets    72,750,706      72,750,706      76,962,315      76,962,315   
         
Operating         
         
Natural gas and crude oil production, before royalties         
Natural gas (Mcf/d)    531      623      733      734   
Natural gas liquids (bbl/d)                 
Crude oil (bbl/d)    1,502      1,671      1,553      1,547   
Total (boe/d)    1,595      1,781      1,682      1,676   
         
Operating netbacks ($/boe) (1)         
Natural gas ($/Mcf)  $0.25      ($0.43    ($1.97    ($1.92 
Crude oil ($/bbl)  $13.95    $21.22    $19.15    $19.22   
Total ($/boe)  $13.14    $19.86    $16.88    $16.96   

(1)Non-IFRS measures – see “Non-IFRS Measures” section within the MD&A
(2)Long term restricted cash not included in working capital

Marshall Abbott, CEO of Arrow commented, “2019 represented the first full year of operations for Arrow as a new company. The Company made a significant commercial discovery in May 2019 on its Tapir Block, through successfully drilling the Rio Cravo Este-1 (RCE-1) well. We have identified two additional RCE well locations on the Tapir Block. On our LLA-23 block, production rates over the past several months have been negatively impacted by significantly lower oil prices, in addition to well-specific issues which Arrow’s new management team intends on addressing contingent on the availability of additional capital. Production at Ombu (Arrow holds 10%) remains shut-in pending the recovery of oil prices and the resolution of community issues.”

Mr. Abbott continued, “The Company wishes to extend our gratitude to all of its stakeholders for their continued support of Arrow during these exceptionally challenging times for our industry. Arrow’s management and Board, including myself, are committed to creating value from the Company’s significant asset base.”

2019 Year-End Reserves

Arrow has filed, on SEDAR, the Company’s Statement of Reserves Data and Other Oil and Gas Information, Report on Reserves Data by Independent Qualified Reserves Evaluator, and Report of Management and Directors on Oil and Gas Disclosure for the year ended December 31, 2019, as required by section 2.1 of National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities (together, the “Reserve Report”).

To recap, the Company’s Year-End 2019 Company Gross Reserves Highlights include:

  • 4.10 MMboe of Proved Reserves
  • 10.32 MMboe of Proved plus Probable Reserves
  • Proved Reserves estimated net present value before income taxes of US $34.7 million calculated at a 10% discount rate
  • Proved plus Probable Reserves estimated net present value before income taxes of US $86.7 million calculated at a 10% discount rate
  • Reserve Life Index of 7.0 for Proved Reserves and 17.7 for Proved plus Probable Reserves based on average fourth quarter 2019 corporate production of 1,595 boe/d
  • Proved plus Probable Reserve Replacement Ratio of 154% and F&D costs of US $9.47/boe

Arrow refers readers to the Company’s press release of April 14, 2020 for additional details, as well as to the Reserve Report filed on SEDAR.

Source: EvaluateEnergy® ©2024 EvaluateEnergy Ltd