Aroway Energy Inc. Discovers Oil Pool and Builds on Land Position in New Core Area
CALGARY, ALBERTA -- (Marketwired) -- 06/06/13 -- AROWAY ENERGY INC. (TSX VENTURE: ARW) (OTCQX: ARWJF) (www.arowayenergy.com) (the "Company") is pleased to announce that it was successful in acquiring a section of land at the recent Alberta crown land sale. The 640 acre parcel of land adjoins Aroway's 100% owned and operated Kirkpatrick Lake producing assets and is strategic to the growth of Aroway's new core area. The Company also announces that it has filed a Good Production Practice ("GPP") application with the Energy Resources Conservation Board ("ERCB") with respect to the Company's new oil pool discovery at Kirkpatrick Lake. Given the new pool discovery status, the Company was required to apply for GPP in order to justify its production strategy and production rates to satisfy the regulator that the maximum oil and gas recovery of the pool will occur. The well was initially tested at a rate of greater than 240 boe per day and is presently limited to a production rate of 50 boe per day. Once the GPP application is approved the Company will resume production at a rate determined by good production practices.
Chris Cooper, President & CEO of Aroway Energy commented, "The new oil pool discovery validates that our Kirkpatrick Lake property is a new core area for Aroway. The ERCB standard practice for new oil pool discoveries is to restrict production, and upon our GPP application being approved we will resume production at significantly higher rates. Furthermore, the success at the recent land sale is very strategic for us to build a larger footprint in the area in addition to adding new drill prospects to our inventory in the area"
The Company continues to work on its development and exploration programs for both its operated lands in West Hazel, Saskatchewan and its joint venture lands in the Peace River Arch. The Company is in the process of planning the second half of its 2013 drill program on its100% owned and operated lands in Central Alberta and Saskatchewan and on its Peace River Arch Joint Venture Lands. In addition, the Company is also evaluating facility upgrades at West Hazel, Saskatchewan which will significantly reduce operating costs and increase reserve life of the 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 a land package of 110 sections (70,400 acres) with 3D seismic coverage over almost all 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 heavy oil producing property in West Hazel, Saskatchewan.
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 nd 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
Director of Communications
Toll Free: 1-855-427-6929
jpottinger@arowayenergy.com
www.arowayenergy.com
