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Arrow Exploration Corp T.AXL


Primary Symbol: V.AXL Alternate Symbol(s):  CSTPF

Arrow Exploration Corp. is a junior oil and gas company engaged in the acquisition, exploration and development of oil and gas properties in Colombia and Western Canada. The Company operates in Colombia via a branch of its wholly owned subsidiary Carrao Energy S.A., with a portfolio of Colombian oil assets that are underexploited and under-explored. It focuses on expanding oil production from Colombia's active basins, including the Llanos, Middle Magdalena Valley (MMV) and Putumayo Basin. Its assets include Tapir Block, Santa Isabel (Oso Pardo), Capella Field, Pepper, and Fir. The Company owns a 50% working interest (WI) in Tapir Block with approximately 65,154 gross acres (32,577 acres net). The Oso Pardo Field is located in the Santa Isabel Block in the MMV Basin. Its 10% interest in the Ombu Block contains the Capella discovery. The Company holds a 100% operated WI in 37 sections of Montney P&NG rights on its Pepper asset in West Central Alberta.


TSXV:AXL - Post by User

Comment by nlr2on Aug 12, 2014 2:21am
287 Views
Post# 22830988

RE:If

RE:IfAnderson is interesting because the equity portion of the business is less significant than that of the debentures, at least if a takeover happens. The debentures are about 85 million I think, and in a takeover would be a fixed cost. The equity portion consists of 170 million shares with a floating value. The other interesting thing is that the valuation of the business depends on what tact you take. If you valued it on average production you are looking at 3200 boe/d with about a third oil and liquids. So you could probably use a figure of 50,000 a flowing barrel and get 160 million. So take off the debentures and divide by shares outstanding and your looking at 44 cents a share. If you looked at the exit target of 3700 boe/d with a higher liquids weighting of 40%, so a price of 55,000 per barrel and assumed they could build off that in 2015 you would get 203 million, so about 69 cents a share. The issue I see is that Anderson doesn't really have a huge amount of land, especially in the core Willesden Green area. I think I read that they have 9,000 acres, or something along those lines. This I would think would lead to some discounting from the flowing BOE/D numbers. This should be partially offset by their ownership of key facilites in the region that would be very helpful to an acquirer. 

So blending these numbers together, along with the other factors, I think somewhere in the 45-50 cent range would be fair. 

Any other opinions?

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