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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

Post by MRSNOITALLon Apr 01, 2015 7:13am
172 Views
Post# 23585403

MD@A

MD@AThe 7.5% Series A convertible debentures in the principal amount of $50 million mature on January 31, 2016 and the 7.25% Series B convertible debentures in the principal amount of $46 million mature on June 30, 2017. The dramatic decrease in commodity prices is expected to impact the Company's options with respect to payment of these debentures when they become due. The Company has the option to settle all or a portion of the outstanding debentures through the issuance of common shares by giving notice of such intent to debenture holders not more than 60 and not less than 40 days prior to the applicable maturity date. The Company currently has a $31 million bank facility which is scheduled to be renewed in May 2015, available working capital and potential proceeds from a shallow gas asset disposition process in the second quarter of 2015 as sources of funds which could be used in whole or in part to settle all or part of the January 31, 2016 debenture maturity with cash. Currently the Company does not have sufficient funds to settle the debentures in cash upon their maturity. There is no assurance that the Company will be able to raise sufficient funds to settle the debentures in cash as it still needs the flexibility to continue oil and gas operations. The Board of Directors has hired Cormark Securities Inc. as a financial advisor to assess the Company's options with respect to the convertible debentures.    DYODD.
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