CALGARY, ALBERTA--(Marketwire - Nov 8, 2012) - AROWAY ENERGY INC. (TSX VENTURE:ARW)(ARWJF) (www.arowayenergy.com) (the "Company") is pleased to announce that the Company has entered into an agreement to acquire oil producing assets from certain private vendors in Western Saskatchewan. The acquisition includes production of 265 barrels of oil per day, the wells and all surface facilities on 200 acres of land of which Aroway will own 100%. The purchase price for the producing assets is $2,769,000 with a scheduled closing of the acquisition on November 27, 2012. The acquisition will be funded through the Company''s credit facility and its current cash with an effective date of November 1, 2012.
Key attributes of the Acquisition:
- Immediate production add of 265 barrels of oil per day
- Acquisition price of $10,450 per flowing barrel oil versus 2012 average of $44,083 per flowing barrel*
- Upside potential through drilling 3 to 5 additional wells and facility upgrades
- 100% Aroway owned & operated lands & production
- Long term stable production
Chris Cooper, President & CEO commented, "This acquisition provides a good balance between Aroway''s high impact exploration core area in the Peace River Arch with low risk long term stable production. Based on the acquisition metrics and extensive due diligence we performed on the asset, Aroway could not pass on this opportunity."
*ATB Corporate Financial Services® Key Statistics Summary August 2012
ABOUT AROWAY ENERGY INC.
Aroway Energy Inc. is a Western Canadian junior oil and gas production and exploration company participating in oil exploration prospects, through a joint venture partnership. 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 within its core area, the Peace River Arch. All of the Company''s 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 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.