Aroway, Partner Conclude Acquisition Transaction

- Aroway, Partner Conclude Acquisition Transaction

Thursday, July 07, 2011
Aroway Energy Inc.

Aroway and its Joint Venture Partner 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."

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Aroway Boosts Production at Peace River Arch Prospect

- Aroway Boosts Production at Peace River Arch Prospect

Monday, June 27, 2011
Aroway Energy Inc.

Aroway reported that the Company's first well of the 2011 drilling program has been on a stable production for 20 days and is producing oil, natural gas liquids and gas from the targeted Leduc formation. The well, which is located in Peace River Arch oil and gas exploration prospects, was placed on restricted flow rate in late May, and in early June the well began to produce oil. Based on the present well pressures and the operators' conservative production practises, the well is expected to stabilize at a rate of 400 boe/day, 200 boe/day net to Aroway. The oil produced from the well is produced and pipelined to a facility owned by the Company's Joint Venture Partner and well operator. Aroway is paying 50% of all costs associated with this well to earn a 50% interest in the well.

The Company also reports that total depth has been reached on the third well of the 2011 drilling program. The well encountered numerous potential hydrocarbon bearing zones in the Triassic deposits and based on the drilling logs, the well will be evaluated in each of the prospective zones. A 100 meter pipeline tie-in has begun and will be complete in the next week, and the well will be production tested directly into the pipeline. Aroway is paying 50% of all costs associated with this well to earn a 50% interest in the well.

Testing on the Company's second well of the 2011 drill program will commence as soon as the roads dry out as heavy rains have hit the area over the past week. We are confident the service rig will be on the location and testing will begin within the next 10 days.

Chris Cooper, President of Aroway commented, "We were quite confident that our first well of 2011 would end up as an oil well as soon as the gas cap was produced. We will have concrete Company production numbers in coming weeks which will bring us much closer to our year-end target of 600 boe/day."

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