CALGARY, ALBERTA--(Marketwired - Sept. 24, 2013) - AROWAY ENERGY INC. (TSX VENTURE:ARW)(OTCQX:ARWJF) (www.arowayenergy.com) (the "Company") is pleased to announce that it has entered into a Farmout Agreement (the "Farmout Agreement") dated August 30, 2013 with a private oil and gas Company ("Privco"), pursuant to which Privco has agreed to Farmout a 100% interest in 9 sections (5,760 acres) (the "Farmout Lands") in the Kerrobert area of Central Saskatchewan.
Pursuant to the Farmout Agreement Aroway will fund 100% of the costs to shoot, process and interpret a 3D seismic program and drill a vertical test well. Upon favorable results of the vertical test well, Aroway has agreed to drill, case and complete two (2) horizontal wells. Aroway Energy will earn a 100% working interest in the Farmout Lands subject to a 12% Gross Overriding Royalty payable to the Privco.
"We are eager to begin operations and aggressively exploit our existing owned and operated properties, including our new property in Saskatchewan. We believe this property has all the characteristics of a Company maker. Going forward we will continue to add production while building our land base with a continued focus on our owned and operated portfolio."
The Farm-in lands are close to key infrastructure including a high grade road, power, gas, a nearby oil terminal and rail. In addition, the property qualifies for the Saskatchewan governments attractive crown royalty incentives of 2.5% on horizontal wells.
ABOUT AROWAY ENERGY INC.
Aroway Energy Inc. is a western Canadian junior oil production and exploration company participating in oil development & exploration prospects in Alberta and Saskatchewan. Aroway operates and owns a highly economic heavy oil producing property in West Hazel, Saskatchewan and has a 100% working interest in a light oil producing property in Kirkpatrick Lake in Central Alberta. Through a joint venture partnership, Aroway has a further land base in the Peace River Arch of Northern, Alberta with over 110 sections (70,400 acres) of 3D seismic coverage on the majority of the land base, with all area infrastructure controlled and owned by Aroway's Joint Venture Partner.
ON BEHALF OF AROWAY ENERGY INC
Chris Cooper, President & CEO
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. 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.