Arrow Energy Ltd.
TSX VENTURE : AOF

Arrow Energy Ltd.

October 02, 2007 06:00 ET

Arrow Announces Completion of Brokered Private Placement

EDMONTON, ALBERTA--(Marketwire - Oct. 2, 2007) - Arrow Energy Ltd. (TSX VENTURE:AOF) ("Arrow") is pleased to announce that it has completed a brokered private financing through Initial Capital Partners Ltd. ("Initial") as first announced on July 31, 2007 for gross proceed of approximately $2,000,000. In connection with the offering, Arrow issued 5,714,487 units ("Units") at a price of $0.35 per Unit (the "Private Placement"). Each Unit is comprised of one (1) common share ("Common Share") and one-half ( 1/2) Common Share purchase warrant. Each whole warrant entitles the holder to purchase one (1) additional Common Share at a price of $0.50 per Common Share for a period of twenty (24) months following the date of closing, however, if after four months and one day following the closing date the closing price of the Common Shares is equal to or exceeds $0.75 for 20 consecutive days, then the warrants shall automatically accelerate to expire on the date which is 30 days after the 20 days.

Arrow intends to use the proceeds from the Private Placement for general working capital purposes, acquisitions and developments.

In connection with the brokered financing, Arrow paid Initial fees totaling $160,000 and issued Broker Options exercisable for a total of 571,428 Units ("Broker Unit") at a price of $0.35 for a period of twenty (24) months from the closing date. Each Broker Unit is exercisable at the same price and on the same terms and conditions as the Units.

The securities issued pursuant the Private Placement have a four (4) month hold period which expire on January 29, 2008.

Completion of the financing remains subject to the final approval of the TSX Venture Exchange.

Arrow is also pleased to announce that it is giving a corporate presentation at the COPIC Energy Conference in Toronto on Tuesday, October 2, 2007 at 11:00 am at the COPIC Energy Conference in Montreal on Thursday, October 4 at noon.

Arrow is a Calgary-based junior resource company engaged in the exploration, development and production of natural gas and oil primarily in the Peavine/Dawson, Westlock, and Redwater/Jeffrey areas of Alberta.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Arrow Energy Ltd.
    Chris Tesarski
    President & CEO
    (403) 237-9996
    (403) 264-0416 (FAX)