Arrow closes non-brokered private placement



    CALGARY, Aug. 21 /CNW/ - Arrow Energy Ltd. (TSX Venture: AOF) ("Arrow")
is pleased to announce that it has closed on its previously announced
non-brokered private placement (the "Private Placement") of an aggregate of
7,600,000 common shares ("Common Shares") at a price of $0.025 per Common
Share for gross proceeds of $190,000. The Common Shares issued in connection
with the Private Placement are subject to a four month hold period pursuant to
applicable securities law, expiring on December 20, 2009.
    Arrow intends to use the proceeds from the Private Placement as well as
joint venture funding to pay its share in the drilling of a horizontal well on
its Pembina, Alberta property to test the Cardium formation. The well may be
completed with up to 9 multistage fracture stimulations. A similar completion
program has been successful in wells drilled in the Cardium formation on lands
on trend to Arrow's property. Arrow will initially have a 16.6% working
interest in the well and ultimately up to a 25% working interest in the pool
development. The number of wells and timing of developments will depend on the
success of the first well, the price of oil and the participation of partners.

    Arrow is a Calgary-based junior resource company engaged in the
exploration, development and production of natural gas and oil primarily in
Alberta.

    This press release contains forward-looking statements which include, but
are not limited to: operations plans and outlook, expectations, opinions,
forecasts, projections, guidance or other statements that are not statements
of fact. Although the Company believes that the expectations reflected in such
forward-looking statements are reasonable, it cannot give any assurance that
such expectations will prove to be correct. Results of the Company may be
affected by a variety of variables and risks associated with oil and gas
exploration, production and transportation, such as loss of market, volatility
of oil and gas prices, currency fluctuations, imprecision of reserve
estimates, environmental risks, competition from other producers, ability to
access sufficient debt and equity capital from internal and external sources,
ability to replace and expand oil and gas reserves, ability to generate
sufficient cash flow from operations to meet its current and future
obligations, and risks associated with existing and potential future lawsuits
and regulatory actions made against the Company; as a consequence, actual
results could differ materially from those anticipated or implied in the
forward-looking statements.
    The Company's forward-looking statements are expressly qualified in their
entirety by this cautionary statement and are made as of the date of this news
release. Unless otherwise required by applicable securities laws, the Company
does not intend nor does it undertake any obligation to update or review any
forward-looking statements to reflect subsequent information, event, results
or circumstances or otherwise.

    
    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
    





For further information:

For further information: Robyn Lore, President, Telephone: (403)
237-9996, Facsimile: (403) 264-0416

Organization Profile

ARROW ENERGY LTD.

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