Arrow Energy Ltd.
TSX VENTURE : AOF

Arrow Energy Ltd.

March 03, 2009 17:34 ET

Arrow Announces Extension Agreement and Year End Oil and Gas Interests

EDMONTON, ALBERTA--(Marketwire - March 3, 2009) - Arrow Energy Ltd. (TSX VENTURE:AOF)("Arrow") announced on March 2, 2009, that it has extended its borrowing arrangement with ATB by executing an Extension Agreement. The Extension Agreement provides for a borrowing base secured by oil and gas production of $4,000,000 (down from approximately $6,000,000) and a maximum amount available until April 30, 2009 of $6,300,000. In addition to its ATB line of credit, Arrow currently has an outstanding $200,000 convertible debenture. Arrow's total debt plus working capital obligations is approximately $7,400,000.

This press release is meant to replace the press release disseminated on March 2, 2009.

Arrow's year end oil and gas interests not including a 100% owned 25 mile 8 inch pipeline were evaluated by Sproule Engineering Ltd. as follows:



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Reserve Category Company Gross (mboe)(i) NPV 10(M$)(ii)
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Proved Developed Producing 318.3 8,396
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Proved Developed Non-producing 87.8 1,152
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Proved Undeveloped 89.5 332
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Total Proved 492.0 9,880
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Probable Developed Producing 128.8 2,275
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Probable Developed Non-Producing 38.5 791
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Probable Undeveloped 113.3 1,965
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Total Probable 280.5 5,031
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Total Proved + Probable 772.5 14,911
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(i) Thousand barrel of oil equivalent
(ii) Net present value before income taxes @ 10% discount


Arrow also announces that Mr. David Sakal, Vice President Production, has resigned his position with Arrow in order to pursue other opportunities. The management, staff and Board of Directors thank him for his efforts and wish him well in his future endeavors.

Forward-Looking Information

Except for statements of historical fact relating to the company, this news release may contain certain "forward-looking information" within the meaning of applicable securities law including opinions, assumptions, estimates and management's assessment of future plans and operations, budgeted capital expenditures and funding thereof, wells to be drilled, timing of drilling of wells and expected depths, budgeted cost of wells, commencement of production from wells and year-end production rate. Forward-looking information in this news release is characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", and other similar words, or statements that certain events or conditions "may" "will" or "could" occur. There are uncertainties inherent in forward-looking information, including factors beyond Arrow's control, and no assurance can be given that such events will occur on time or at all. Any number of important factors could cause actual results to differ materially from those in the forward-looking statements including, but not limited to, risks associated with oil and gas exploration, development, exploitation, results from testing, production, marketing and transportation, the volatility of oil and gas prices, currency fluctuations, the ability to implement corporate strategies, the state of domestic capital markets, the ability to obtain financing, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, changes in oil and gas acquisition and drilling programs, delays resulting from inability to obtain required regulatory approvals, delays resulting from inability to obtain drilling rigs and other services, delays in tie-in-operations, results from testing, environmental risks, competition from other producers, imprecision of reserve estimates, changes in general economic conditions and other factors more fully described from time to time in the reports and filings made by Arrow with securities regulatory authorities. Arrow undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change, except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. The risks and uncertainties set forth above are not exhaustive. BOEs may be misleading, particularly if used in isolation.

A BOE conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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.
    Robyn Lore
    President
    (403) 237-9996
    (403) 264-0416 (FAX)