Category: Investment, Energy, Oil, Gas, Natural Gas
Oil and Gas Stocks; Aroway Energy Inc. (TSX-V:ARW; PINK:ARWJF) Executes Option on Additional 29 Sections
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CALGARY, ALBERTA - February 14, 2011 (Investorideas.com energy stocks newswire) – Aroway Minerals Inc. (TSX-V:ARW; PINK:ARWJF) (www.arowayenergy.com) (the "Company") is pleased to announce that the Company and its joint venture partner ("Partner") have entered into a rolling farmout agreement ("Agreement") with a private oil and gas company (the "Farmor") with access to 29 sections, of 3D seismically defined land (the "Lands") located within the Company's and its Partner's core area of interest in the Peace River Arch area of Northern Alberta.
The terms of the agreement commit the Partnership to drill 1 well on the Farmor's Lands before February 28, 2011, and a second well on the Lands before August 1st, 2011. Each well drilled on the Lands earns the spacing unit. The Partnership will also have the option to continue the Agreement by committing to drill a well on the undrilled Lands every 90 days from the rig release of the previously drilled well, subject to weather and ground conditions. Together with its partner, the Company also purchased approximately 45 square kms of proprietary 3D data which covers a substantial portion of the Agreement Lands, for $330,000 net to Aroway. The Company's Partner has already identified several drillable prospects within the Agreement Lands.
Aroway paid 50% of the total consideration for the rolling option and the 3D seismic, and will pay 50% of all costs associated with the development of the Lands to earn 50% of all revenue generated from these acquired Lands. The Farmor will retain a variable royalty depending on the location of the drilling target that will range from 7.5% to 12.5%. The execution of the rolling option agreement gives Aroway access to a total of 79 sections of land in the Company's Core operating area within the Peace River Arch of northern Alberta.
Chris Cooper, President of Aroway, commented, "The execution of the option agreement enables us to become a fast growing player in our core area. Aroway has grown from a 4 section farmout to having access to 79 sections in one of the hottest regions of Northern Alberta in just 4 months. We look forward to continued exploration success in 2011."
Aroway is also very pleased to report that workover operations on the Partnership's recent well acquired through the 5 section acquisition announced on January 31, 2011 have been completed. Current production from the well has been increased 250% from 20 boe/day to 50 boe/day (25 boe/day net to Aroway).
About Aroway Energy Inc.
Aroway Energy Inc. is a Western Canadian junior oil and gas production and exploration company participating in "non-operated" Peace River Arch oil and gas exploration prospects, through a joint venture partnership. Aroway is currently producing approximately 225 boe/day of oil, gas liquids and gas net to Aroway
ON BEHALF OF AROWAY ENERGY INC.
Chris Cooper, President
BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
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.
Aroway Energy Inc.
(604) 304-4090 or Cell: (604) 617-5290
(604) 909-2679 (FAX)
(647) 258-3311 or Toll Free: (888) 258-3323
Investor Cubed Inc.
(416) 363-7977 (FAX)
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