Canadian oil company Arrow Exploration Corp. (TSXV: AXL) announced that it will sell part of its interest in the VMM-2 block within the Middle Magdalena Basin for $5 million USD.
The goal of the sale is to bring in cash to provide more liquidity and financial flexibility for Arrow Exploration, which operates in Colombia through its wholly owned subsidiary Carrao Energy S.A.
Arrow Exploration will be offloading a 46.9% interest in what it refers to as the the “deeper section” of the block. It is also selling a 20% interest in the “shallow section.”
Combined, the Calgary-based firm expects to see a drop of around 85 barrels per day in net production of oil.
The company expects the sale, which is subject to approval by the Colombian National Hydrocarbon Agency (ANH), to close by December 14.
The move will provide “an important boost to Arrow’s financial flexibility while retaining exposure to results of an expected capital program on the VMM-2 Block in 2019,” it said in a statement.