Arrow Energy Ltd.

Arrow Energy Ltd.

November 13, 2006 18:44 ET

Arrow Energy Ltd.: Potential Drilling & Completions Activity

CALGARY, ALBERTA--(CCNMatthews - Nov. 13, 2006) -

(Not for distribution to United States news wire services or for dissemination in the United States)

Arrow Energy Ltd. (TSX VENTURE:AOF) ("Arrow") is pleased to announce its participation with Canadian Natural Resources Limited ("CNRL") in a four well winter drilling program in the Peavine/Springburn Area. Arrow's and CNRL's participation in the projects is pursuant to various agreements with CNRL signed by Tirmoil Energy Ltd. ("Tirmoil"), and are the direct result of an agreement effective Friday, October 27, 2006, wherein Tirmoil agreed that it would immediately transfer all of its oil and gas properties and operations to Arrow.

The winter drilling program is as follows:

Slave Point Oil Well 11-13-79-17W5 Arrow 25% (start Nov. 15th)
Slave Point Oil Well 10-31-79-16W5 Arrow 50% (prior to casing point)
Slave Point Oil Well 11-32-79-16W5 Arrow 50% (prior to casing point)
Bluesky Gas Well 102/16-32-79-16W5 Arrow 50% (prior to casing point)

Should these programs be successful Arrow estimates an increase in production of approximately net 400 BOE/d. This drilling program combined with its joint operations with Husky (Press Release, November 8th, 2006) could bring Arrow's daily production levels to approximately 900-1000 BOE/d by the end of Q1 2007.

"We believe that by taking a long term view of energy markets and the industry in general, which consistently shows increased energy consumption, we will have tremendous success as we continue to stick to our core business which is discovering and developing oil and gas production" says President Chris Tesarski. "The fundamentals of operating a junior oil and gas company have not changed and we intend to watch our operating costs and diligently look for new opportunities to bring value to our shareholders."

Arrow intends to finance these operations with a combination of new equity, cashflow and some debt financing.

BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl 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 Energy Ltd. is a junior oil and gas company listed on the TSX Venture Exchange having active production and exploration operations in Northern and Central Alberta.

Certain statements contained in this press release may be considered as "forward looking". Such "forward looking" statements are subject to risks and uncertainties that could cause actual results to differ materially from estimated or implied results.

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
    (403) 538-2110
    Arrow Energy Ltd.
    Suite 3000, 150 - 6th Avenue S.W.
    Calgary, Alberta T2P 3Y7
    (403) 538-2121 (FAX)