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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 StompinTomon Apr 10, 2015 1:16pm
106 Views
Post# 23617093

RE:Just a opinion

RE:Just a opinion
If I was a buyer, I would be waiting out whether they can find a solution to the first set of debentures; if they can't you can pick up the assets in liquidation.  With AXL's decision to suspend drilling, they are conserving cash as much as possible and harvesting what is already in process.  Unfortunately, this will take time.  The irony is, they could even go in to CCAA to suspend the debenture payments until they raise the cash via asset sales, production if prices rise etc.  This would allow the common shareholders to retain some value as entering CCAA does not mean you necessarily are bankrupt. 

I think they are aways from the CCAA situation but as bleak is it looks, this story will play out longer than its current share price indicates. 

Management was here once before with over 400% more debt than they are now and somehow dug out of the crapper then.  They continue to pay for the sins of 5 years ago when they over-levered.  The seismic drop in oil prices was likely not in even 5 deviations of any set of reasonable plans. 

GLTA
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