CALGARY, ALBERTA — (Marketwire) — 09/28/11 — AROWAY ENERGY INC. (TSX VENTURE: ARW)(PINK SHEETS: ARWJF) () (the “Company”) is pleased to announce that the Company and its joint venture partner (“Partnership”) have outright acquired a portion of the lands that comprised the rolling farmout agreement (“Agreement”) that the Partnership entered into in February of this year with a private oil and gas company (the “Vendor”).
The acquisition consists of 24 sections of land. The Partnership is only required to pay approximately a 6% royalty on production from the acquired lands to the Vendor as opposed to the variable royalty of 7.5% to 12.5% under its previous Agreement. Total consideration paid to the Vendor for the acquisition was $661,637 ($330,818 net to Aroway).
Chris Cooper, President & CEO commented, “This acquisition falls in line with the Company–s strategy to build and control our existing land base in our core area. The Partnership will capitalize economically almost immediately with the royalty payments cut in half in some cases on certain wells going forward, which will benefit Aroway–s bottom line.”
Aroway paid 50% of the total consideration for the acquisition, and will pay 50% of all costs associated with the development of the lands to earn 50% of all revenue generated.
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. The joint venture partnership gives Aroway a rolling option on 96 sections of land.
The Company is currently producing approximately 530 boe/day of oil, gas liquids and gas net to Aroway.
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.
Contacts:
Aroway Energy Inc.
Chris Cooper
President & CEO
Toll Free: 1-855-427-6929
Aroway Energy Inc.
Judy-Ann Pottinger
Toll Free: 1-855-427-6929
Investor Cubed Inc.
Toll Free: 1-888-258-3323