Aroway Energy Inc.
TSX VENTURE : ARW
PINK SHEETS : ARWJF

July 07, 2011 08:30 ET

Aroway Energy Inc. Acquires Land & Well Bores

CALGARY, ALBERTA--(Marketwire - July 7, 2011) - AROWAY ENERGY INC. (TSX VENTURE:ARW)(PINK SHEETS:ARWJF) (www.arowayenergy.com) (the "Company") reports that the Company together with its Joint Venture Partner (the "Partnership") have completed a transaction to acquire certain lands in its core area with a third party private oil and gas company. The particulars of the agreement are as follows:

  • The Partnership will acquire 10 sections of land, typically, all rights, and
  • The acquisition includes six (6) existing wellbores, typically drilled to the base of the Leduc, and
  • The Partnership acquired the lands and wellbores in exchange for a variable gross overriding royalty ranging from 6% to 8%.

As a result of the agreement, the Partnership will begin a recompletion program on the 6 acquired well bores in addition to 2 other wellbores that have become available under the Company's initial partnership deal. At least 2 additional wellbore opportunities will follow later in the year. Consistent with the Partnership's strategy, all the wellbores are multi-zone prospects for oil, gas and gas liquids. Each of the wellbores are covered by 3D seismic, and are in close vicinity to tie-in to the Joint Venture Partners gathering and plant infrastructure. The Company anticipates releasing recompletion results once the well bores have consistently produced at stabilized economic volumes.

Aroway's 3rd well of the 2011 exploration program will be tested and completed in the coming days, as operations were delayed by wet weather.

Chris Cooper, President and CEO, commented, "We are confident that the recompletion program will deliver economic material production at a substantially low cost per flowing boe from the existing well bores acquired. Success with this program along with our 2011 drill program will further contribute to Aroway achieving its year-end target of 600 boe/day."

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. All of the planned exploration and/or development wells to be drilled are defined by 3-D seismic, have multi-zone prospectivity and are close to the joint venture partner's owned and operated infrastructure.

ON BEHALF OF AROWAY ENERGY INC.

Chris Cooper, President & CEO

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.

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