Aroway Energy Inc. Closes Oil Acquisition
CALGARY, ALBERTA -- (Marketwire) -- 12/03/12 -- AROWAY ENERGY INC. (TSX VENTURE: ARW) (OTCQX: ARWJF) (www.arowayenergy.com) (the "Company") is pleased to announce that it has closed its property acquisition, for the purchase of oil producing assets in the West Hazel area of Western Saskatchewan from certain private vendors. The acquisition includes production of approximately 300 barrels of oil per day, the wells and all surface facilities on 200 acres of land of which Aroway will own and operate 100%. The purchase price for these producing assets was $2,769,000, subject to adjustments, including 27 days of production as of the effective date of Nov 01, 2012.
The acquisition will add immediate production of approximately 300 barrels of oil per day and Aroway is confident that production can be increased by at least an additional 300 barrels per day by drilling up to 3 additional wells into the existing pools, recompleting two existing non-producing wells, installing a water management facility, and upgrading the existing oil batteries.
Chris Cooper, President & CEO commented, "This acquisition reflects our ability to move quickly on highly economic opportunities. We will continue to remain active in the acquisition arena capitalizing on similar opportunities both within and outside our existing core area as we continue to grow our production."
ABOUT AROWAY ENERGY INC.
Aroway Energy Inc. is a Western Canadian junior oil focused production and exploration company participating in oil development & exploration prospects in Alberta and Saskatchewan, Canada. Through a joint venture partnership in the Peace River Arch of Northern, Alberta, Aroway and its Partner have assembled an impressive land package of 123 sections (78,720 acres) with 3D seismic coverage over 75% of its lands. All exploration and development targets are in close proximity to tie-in, gathering and plant infrastructure, controlled and owned by Aroway's Joint Venture Partner. Aroway also has 100% operated working interest on a 3D seismically defined exploration property in Central Alberta and a highly economic, long-term producing property in West Hazel Saskatchewan.
Aroway plans to exit 2012 with total production of approximately 1200 boe/d.
ON BEHALF OF AROWAY ENERGY INC
Chris Cooper, President & CEO
A conversion ratio of 1 barrel of oil equivalent ("boe"); 6 Mcf has been used, which is based on an energy equivalency conversion method primarily applicable at the burner tip and does not necessarily represent a value equivalency at the wellhead. Boes may be misleading, particularly if used in isolation.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Aroway Energy Inc.
Chris Cooper
President & CEO
Toll Free: 1-855-427-6929
cooper@arowayenergy.com
Aroway Energy Inc.
Judy-Ann Pottinger
Toll Free: 1-855-427-6929
jpottinger@arowayenergy.com
Investor Cubed Inc.
Toll Free: (888) 258-3323
info@investor3.ca
