Arrow Energy Ltd.

Arrow Energy Ltd.

July 28, 2005 13:20 ET

Arrow Energy Management to Consider Strategic Options

CALGARY, ALBERTA--(CCNMatthews - July 28, 2005) -

(Not for dissemination in the United States of America)

Arrow Energy Ltd. (TSX VENTURE:AOF) (Arrow) advises that as a result of management's regular review of options available to Arrow to increase shareholder value, its board of directors has authorized management of Arrow to undertake examination of possible corporate restructuring alternatives available to Arrow to increase shareholder value. No decision on any particular alternative has been reached at this time and there can be no assurance that the board of directors will determine to undertake any transaction identified and presented to it by management. Arrow has engaged Canaccord Capital Corporation as adviser in this regard.

Management of Arrow has been asked to consider strategic options available to Arrow, including but not limited to: the Corporation undertaking a transaction feasibility study and pricing analysis regarding potential acquirors; the Corporation undertaking a transaction feasibility study and pricing analysis regarding potential targets and, maintaining the status quo and continuing Arrow's strategic direction as an independent oil and natural gas exploration and development company.

Any strategic initiatives identified by management will be subject to review by, and approval of, the board of directors, and will also be subject to the receipt of all required shareholder and regulatory approvals.

This press release includes forward-looking statements and assumptions respecting the Company's strategies, future operations, expected financial results, financing sources, commodity prices, costs of production and quantum of oil and natural gas reserves and discusses certain issues, risks and uncertainties that can be expected to impact on any of such matters. By their nature, forward-looking statements are subject to numerous risks and uncertainties that can significantly affect future results. Actual future results may differ materially from those assumed or described in such forward-looking statements as a result of the impact of issues, risks and uncertainties whether described herein or not, which the Company may not be able to control. The reader is therefore cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any intention or obligation to update or revise these forward-looking statements, as a result of new information, future events or otherwise.

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.
    Eric G. Gosselin
    President & CEO
    (403) 266-4536
    Arrow Energy Ltd.
    Jeff Thomson
    VP Finance & CFO
    (403) 538-3465
    Arrow Energy Ltd.
    Suite 300, 407 - 2nd Street S.W.
    Calgary, Alberta T2P 2Y3
    (403) 266-4564 (FAX)