14th Aug 2026 16:25
(Alliance News) - Arrow Exploration Corp on Friday announced it has acquired an oil producing property in Alberta, Canada for CAD12.2 million, around USD8.9 million.
The Calgary-based oil and gas company said it bought a 100% working interest in the Thorsby property in central Alberta from an unnamed private company. The purchase was funded from Arrow's cash reserves, the company said.
The property currently produces about 550 barrels of oil equivalent per day and generated around USD1.4 million in operating income over the last 12 months. The asset has 5.0 million barrels of proved reserves and 7.5 million barrels of proved and probable reserves, according to a third-party report.
Arrow said the property covers 9,501 net acres and includes 22 potential drilling locations in the lower Cretaceous Sparky reservoir.
The company expects two-mile horizontal wells at Thorsby to cost around USD1.6 million each. It said the wells are expected to have initial production rates of around 300 barrels of oil per day and quick payback periods.
Arrow will assume USD6.3 million of decommissioning liabilities as part of the acquisition.
Chief Executive Officer Marshall Abbott said the acquisition provides a "low-risk development program" while significantly increasing Arrow's reserves and drilling inventory.
Arrow said the acquisition complements its Colombian operations and that it remains debt free following the transaction.
Arrow shares were down 2.3% to 26.97 pence on Friday afternoon in London.
By Niall Holden, Alliance News reporter
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