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Aroway Energy Inc. 04.06.2014
Aroway Energy

 

AROWAY ENERGY INC. SELLS WORSLEY ASSETS

 

 

Calgary, Alberta, June 4, 2014 – AROWAY ENERGY INC. (TSX-V: ARW) (OTCQX: ARWJF) (www.arowayenergy.com) (the “Company”) announces that it has completed the sale of its non-operated assets in the Worsley area of the Peace River Arch of Alberta  for an approximate transaction value of $3.3 million.   The Worsley asset disposition consists of a 50% working interest in 54,488 acres, with current production of approximately 40 boe/day. Aroway Energy will net $390,000 plus GST in cash on the sale.

Key Highlights of the Assets Sold:

 

- Elimination of approximately $2.60 million of abandonment and reclamation liability associated with 67 working interest wells and related pipelines and access roads.

- Elimination of all the associated joint venture costs of approximately $900,000.

- Transaction valued significantly over 2013 NPV 10% Total Proved Reserves.(1)

- 50% working interest in 54,488 acres.

 

Chris Cooper, President & CEO of Aroway Energy commented, “While we had a great run in the Worsley play in the early days of Aroway, and worked with some great partners, the sale of these assets is a natural step in our continued shift towards focusing on our 100% owned and operated properties. This transaction further demonstrates our commitment to significantly improve our balance sheet with the elimination of over $2.6 million of asset retirement obligations and over $900,000 of associated joint venture costs. Furthermore, we were able to negotiate a deal valued significantly above our 2013 NPV 10% total proved reserve value, reflecting our commitment to execute on transactions that will ultimately be accretive to our shareholders.”

 

(1)              Based on a Trimble Independent Reserve Evaluation at June 30, 2013, Total Proved Reserves NPV10% was $760,200

 

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 100% working interest heavy oil producing property in West Hazel, Saskatchewan, a 100% working interest light oil producing property in Kirkpatrick Lake, Central Alberta and has access to a large contiguous prospective land base in the Kerrobert area of West Central Saskatchewan. 

 

ON BEHALF OF AROWAY ENERGY INC

“Chris Cooper”

President & CEO

 

For further information, please contact:

Chris Cooper

President & CEO

Toll Free:  1-855-427-6929

Email:  cooper@arowayenergy.com

 

Judy-Ann Pottinger

Director of Communications

Toll Free:  1-855-427-6929

jpottnger@arowayenergy.com

 

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 and does not necessarily represent a value equivalency at the wellhead.  Boes may be misleading, particularly if used in isolation.

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