Blog: Aroway Minerals Inc. Acquires Land & ProductionJanuary 31, 2011
Aroway Minerals Inc. is pleased to announce that the Company and its joint venture partner ("Partner") have acquired interests in 5 sections (3,200 acres) of land (the "Lands") and gross production of approximately 20 boe/day of gas and gas liquids ("Production") adjoining the Company's existing core area in the Peace River Arch of northern Alberta. The Lands and the Production were acquired for total consideration of $690,000 ($345,000 net to Aroway).
The acquired Lands have one immediate drillable prospect and two additional prospects pending further technical review. The Partner has 3D seismic coverage over the Lands. The Company and its Partner are confident that the existing Production on the Lands can be doubled with additional compression, and plans are underway to complete this work.
Aroway paid 50% of the total consideration for the acquisition of the Lands and the production, and will pay 50% of all costs associated with the development of the Lands to earn 50% of all revenue generated from these acquired Lands.
Chris Cooper, President of Aroway stated, "this acquisition provides additional development opportunities as well as immediate production in the Peace River Area where Aroway and its Partner already have significant land?holdings, production, operating infrastructure and existing drilling opportunities. We will continue to source similar strategic opportunities that can increase land holdings and production in our core area".