CALGARY, ALBERTA–(Marketwired – Jan. 16, 2014) – AROWAY ENERGY INC. (TSX VENTURE:ARW)(OTCQX:ARWJF) (www.arowayenergy.com) (the “Company”) is pleased to announce that it has executed a seismic option agreement with a major independent oil Company (the “Optionor”) on 18 sections or portions of sections of freehold land (approximately 8,800 acres) adjoining Aroway’s existing land base of 15 sections (9,600 acres) in the Kerrobert area of central Saskatchewan.
Pursuant to the Agreement, Aroway has committed to shoot, process and interpret approximately 21 sections of 3D seismic over the option lands. Upon completion of the seismic program, Aroway can elect to acquire the freehold leases for a fee payment for a 2 year term subject to a gross overriding royalty. If Aroway elects to acquire the leases, Aroway is then committed to drill a test well on the option lands, with requirements to continue to drill to keep the leases, and will have the option in certain circumstances to extend the term of the leases.
Chris Cooper, President & CEO of Aroway Energy commented, “The execution of this agreement is a significant milestone for the Company as it almost doubles our land position at Kerrobert. With significant production nearby, we are confident endorsing this area as a new core property. We are eager to begin the 3D seismic program over the lands enabling Aroway to fulfill its commitments under the agreement and begin to exploit this property.”
The lands are close to key infrastructure including a high-grade road, power, gas, a nearby oil terminal and rail.
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 50% working interest in the Peace River Arch of Northern, Alberta with 90 sections (57,600 acres) of land with 3D seismic coverage on the majority of the land base, with the area infrastructure controlled and owned by Aroway’s Joint Venture Partner.
[expand title=”Advisories & Contact”]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 and does not necessarily represent a value equivalency at the wellhead. Boes may be misleading, particularly if used in isolation.
Aroway Energy Inc.
Chris Cooper
President & CEO
Toll Free: 1-855-427-6929
cooper@arowayenergy.com
Aroway Energy Inc.
Judy-Ann Pottinger
Toll Free: 1-855-427-6929
jpottinger@arowayenergy.com
www.arowayenergy.com
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