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Aroway Energy, Inc. (ARWJF) RSS Feed

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MARCH 2013 PRESENTATION:
http://www.arowayenergy.com/uploads/default/files/arw-presentation.pdf























Corporate Overview

Aroway Energy Inc. is an oil-focused, Western Canadian-based exploration, acquisition and production company developing its core area consisting of light oil within the prolific Peace River Arch region of northern Alberta, Canada and its 100% owned and operated exploration property in the Kirkpatrick Lake area of Central Alberta.  The Company also owns and operates a highly economic heavy oil producing property in West Hazel Saskatchewan.

The Company was founded in September 2010 with a goal oriented and highly focused approach to build shareholder value by pursuing 3D seismically-defined conventional targets combined with significant strategic emerging resource

The Company's joint venture exploration program centres on a contiguous land base totaling 70,400 acres (110 gross sections) within Alberta's Peace River Arch. The Peace River Arch is one of the most active exploration and development areas in Alberta with exploration heavy weights such as Birchcliff Energy Ltd., Crescent Point Energy Corp., Canadian Natural Resources Limited and Shell Canada, all surrounding Aroway's land base.

Aroway also has 100% working interest on a 3D seismically defined exploration property in Central Alberta - Kirkpatrick Lake and a highly economic heavy oil producing property in West Hazel Saskatchewan

The Company is one of the fastest growing juniors in its Peace River Arch operations, starting from a small 4 section (2,560 acres) farm-in land base in September 2010, to its current rolling option on a contiguous land base of 110 sections (70,400 acres).

In 2012, Aroway was named to the TSX Venture 50, a ranking reserved for the strongest performing companies on the TSX Venture Exchange. Aroway ranked 5th among the Top 10 Oil & Gas Companies included in the TSX Venture 50.

Aroway attracted early funding by way of private placements from some of Canada's most respected institutional funds including Sprott Asset Management, Alpha North Partners, Cypress Capital and Matrix Funds and in 2012 from Marquest Asset Management and Secutor Capital Management.

History

In October 2010, Aroway began operations as a Western Canadian junior oil and gas company by signing a 4 section farm-in deal totaling 2,560 gross acres and in December 2010, set a 2011 year-end target of 600 boe/d of production.

By the end of 2011, through various acquisitions and farm-ins, the Company acquired an additional 117 gross sections of land increasing its land position to 77,440 gross acres or 121 gross sections.

  • Successfully raised over $10 million dollars for its exploration and development program.
  • Drilled and completed 10 wells, exiting 2011 ahead of its 2011 guidance exit target at 669 boe/d (75% oil).
  • Named to the TSX Venture 50, a ranking reserved for the strongest performing companies on the TSX Venture Exchange. Aroway ranked 5th among the Top 10 Oil & Gas Companies included in the TSX Venture 50.



Corporate Information

Aroway Energy Inc.

Corporate Office

Suite #1910
1055 West Hastings Street
Vancouver, British Columbia
Canada V6E 2E9
Telephone: (604) 304-4090
Fax: (604) 909-2679
E-mail: info@arowayenergy.com
Website: www.arowayenergy.com

Contacts

Chris R. Cooper
President & CEO
Office: 604-304-4087
Mobile: 604-307-8290
Email: cooper@arowayenergy.com

Judy-Ann Pottinger
Director of Communications
Office: 604-304-4090
Mobile: 604-617-5290
Email: jpottinger@arowayenergy.com

Share Listing

TSX-V:
OTCQX:
Frankfurt:
ARW
ARWJF
A7X1

Share Capital

Basic Shares Outstanding 61.8 MM
Warrants Outstanding 5.1 MM
Options Outstanding 4.3 MM
FD Shares Outstanding 71.3 MM
Market Cap $33.4 MM
Insiders and Founders Group 22%

Asset Base

Reserves
Total Proved + Probable Reserves 716.3 Mboe
Total Proved + Probable Reserves BTNPV @ 10% $12,434 M

Land Base
WORSLEY 110 Sections
(70,400 acres)
CENTRAL ALBERTA 3.75 Sections
(2,400 acres)
WESTERN SASKATCHEWAN 0.3 Sections (192 acres)

Auditors

James Stafford Chartered Accountants
Vancouver, British Columbia, Canada

Bankers

Canadian Western Bank
Calgary - Main Branch, Alberta, Canada

Transfer Agent

Equity Financial Trust Company
1185 West Georgia Street
Vancouver, British Columbia
Telephone: 604-696-4230



 

Directors and Management

Christopher (Chris) Cooper

BBA, MBA, President & CEO

Mr. Cooper has over fifteen years of oil and gas management and finance experience and has founded several successful junior oil and gas companies. Mr. Cooper earned a Bachelor of Business Administration degree from Hofstra University and a Master of Business Administration in Business from Dowling College.

Daryn Gordon

C.A., CFO, Director

Mr. Gordon is a chartered accountant with over twelve years of finance and accounting experience with publicly traded companies. He obtained his Chartered Accountant designation at an international accounting firm in Calgary, where he gained extensive audit, corporate reporting and financial control analysis experience. As a manager with a national accounting firm, Mr. Gordon acquired a high level of experience with junior energy companies.

Desmond Balakrishnan

B.A., LL.B, Director - Partner, McMillan LLP

Mr. Balakrishnan has been a partner with McMillan LLP since 2004. He is also a member of McMillan's Corporate Finance/Securities Law Group. His current areas of focus include mergers, acquisitions, listed company maintenance, international public listings, gaming and entertainment law. Mr. Balakrishnan was called to the Bar in 1998.

Brad Nichol

P.Eng, MBA, Director

Mr. Nichol is currently the President and CEO of Edge Resources a junior oil and gas exploration and Production Company focusing on shallow gas formations in Central Alberta, Canada. His experiences are in private and public startups, takeovers and turnarounds. Mr. Nichol is a Professional Engineer (Mechanical) and earned his MBA, with honours, from the London Business School.

Mike Veldhuis

B.A., MBA, Director

Mr. Veldhuis has assisted both private and public companies in structuring and obtaining debt and equity facilities since 2003. Mr. Veldhuis previously worked for GE Capital Solutions, a division of GE Capital, where he specialized in providing structured asset based lending facilities to companies operating in the mining, forestry and construction industries. Mr. Veldhuis is currently a director of Upton Capital Corp., a privately held Mortgage Investment Corporation that specializes in residential mortgages in Western Canada.

Dave Contrada

Manager of Engineering

Mr. Contrada brings over 10 years' experience in exploitation, production, operations and facilities engineering, identifying and evaluating property acquisitions, development strategies, production optimization, engineering reports and budgeting. Mr. Contrada received his Bachelor of Science in Mechanical Engineering from the University of Calgary. He began his career with Altagas as an operations engineer and has held production & exploitation engineering positions with Cedar Energy Partnership, Husky Energy Inc., and most recently served as Engineering Manager for Alberta Oilsands Inc.




Growth Strategy

Aroway's strategy focuses on enhancing shareholder value with oil focused exploration within its core area the Peace River Arch region of Northern Alberta and in its 100% owned and operated projects in the Kirkpatrick Lake area of Central Alberta and West Hazel in Western Saskatchewan.  The Company will continue to fund the drilling of oil focused targets within each of its area of operations to increase the Company's production and revenue stream. Aroway will balance its exploration program between lower risk long life production conventional plays and well defined high return strategic resource plays. 

Growth

  • Increase shareholder value with focus on growth in production and cash flow
  • Balanced production - managing producing wells to maximize production of oil and natural gas liquids
  • Continue to drill oil focused targets to increase production and revenues
  • Continue to pursue smaller, key crown land purchases and strategic property acquisitions

Core Area Highlights

  • 110 sections of land - all targets 3D seismically defined and close to tie-in
  • Multi-zone/multi-horizon prospectivity on all drill targets
  • Current drill program 100% oil focused
  • Ongoing, low risk re-completion program on existing & purchased well bores
  • Experienced Joint Venture partner/operator with a proven track record in the area
  • Substantial land package surrounded by 5 majors

Competitive Advantage

  • Proven prospect development history delivered through extensive small business relationships, access to experienced geological and geophysical teams and management that delivers results.
  • Ability to raise funds and apply disciplined capital across the strategy at the appropriate time and accretive price to build shareholder value
  • Management and insider ownership aligns the interest with shareholders
  • Business relationships provide access to large array of distress companies/properties
  • Access to infrastructure owned by JV Partners in core property
  • Recognized as a 2012 TSX Venture Top performer with proven track record









Recent News:

Aroway Energy Inc. Announces First Tranche Close of Brokered Private Placement
 
Aroway Energy Inc. Announces First Tranche Close of Brokered Private Placement

CALGARY, ALBERTA--(Marketwire - Dec. 5, 2012) - Aroway Energy Inc. (TSX VENTURE:ARW)(OTCQX:ARWJF) (www.arowayenergy.com) (the "Company") is pleased to announce that further to its news release of November 19, 2012, it has closed its brokered private placement of 6,043,981 flow-through units (the "FT Units") at a price of $0.55 per FT Unit and 1,352,000 non flow-through units (the "Units") at a price of $0.50 per Unit (collectively, the "Offering"), for aggregate gross proceeds of $4,000,190.

Each FT Unit consists of one (1) common share in the capital of the Company which will be designated as a flow-through share for the purposes of the Income Tax Act (Canada) and one-half (1/2) of one common share purchase warrant (each whole warrant, an "FT Warrant"). Each FT Warrant entitles the holder thereof to purchase one (1) additional common share of the Company at a price of $0.65 per common share until December 4, 2013. Each Unit consists of one (1) common share of the Company and one (1) common share purchase warrant (a "Warrant"). Each Warrant entitles the holder thereof to purchase one additional common share of the Company at a price of $0.60 per share until December 4, 2013.

In connection with the closing, the Company paid Secutor Capital Management Corporation and Marquest Capital Markets (collectively, the "Agents") a fee equal to 7% of the gross proceeds of the Offerings and issued non-transferable compensation options (the "Compensation Options") to the Agents equal to 7% of the total number of FT Units and Units sold under the Offering. Each Compensation Option is exercisable to acquire one common share of the Company at the price of $0.50 per share until December 4, 2013.

All securities issued under the Offerings will be subject to a hold period expiring on April 5, 2013. Proceeds of the offering will be used primarily for costs associated with the exploration of the Company's core property in the Peace River Arch and its recently acquired Kirtpatrick Lake property in central Alberta. A portion of the proceeds of the sale of the Units will also be used for general working capital purposes.

ABOUT AROWAY ENERGY INC.

Aroway Energy Inc. is a Western Canadian junior oil focused production and exploration company participating in oil development & exploration prospects in Alberta and Saskatchewan, Canada. Through a joint venture partnership in the Peace River Arch of Northern, Alberta, Aroway and its Partner have assembled an impressive land package of 123 sections (78,720 acres) with 3D seismic coverage over 75% of its lands. All exploration and development targets are in close proximity to tie-in, gathering and plant infrastructure, controlled and owned by Aroway's Joint Venture Partner. Aroway also has 100% operated working interest on a 3D seismically defined exploration property in Central Alberta and a highly economic, long-term producing property in West Hazel Saskatchewan.

Aroway plans to exit 2012 with total production of approximately 1200 boe/d.

ON BEHALF OF AROWAY ENERGY INC

Chris Cooper, President & CEO

For further information, please contact:

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.

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.

Contact Information:
Aroway Energy Inc.
Chris Cooper
President & CEO
1-855-427-6929
cooper@arowayenergy.com


Aroway Energy Inc.
Judy-Ann Pottinger
1-855-427-6929
jpottinger@arowayenergy.com
www.arowayenergy.com


Investor Cubed Inc.
(888) 258-3323
info@investor3.ca


Aroway Energy Inc. (PINK:ARWJF) is a Western Canadian junior oil focused production and Exploration Company participating in oil development & exploration prospects in Alberta and Saskatchewan, Canada. Through a joint venture partnership in the Peace River Arch of Northern, Alberta, Aroway and its Partner have assembled a land package of 123 sections (70,400 acres) with 3D seismic coverage over almost all of its lands. All exploration and development targets are in close proximity to tie-in, gathering and plant infrastructure, controlled and owned by Aroway's Joint Venture Partner. Aroway also has 100% operated working interest on a 3D seismically defined exploration property in Central Alberta and a highly economic heavy oil producing property in West Hazel Saskatchewan.

Aroway Energy Overview

Though Aroway Energy is classified as a junior oil explorer, the categorization doesn't do the company justice. Unlike the bulk of its junior peers, not only is Aroway producing oil, it's within sight of net operating profits. Odds may well be, however, the company is acquired before it ever gets its way into the black. The number of producing wells is growing firmly enough to attract the attention of the major oil names looking for new sources.

For perspective, since beginning operations in October of 2010, the company's production has ramped up from nothing then to a pace of 1,020 barrels of oil per day (boe/d), and from four (drilling) sections 123 sections.

It wasn't just a windfall-like drilling success either. The organization started out with only a few sections of land, and only a few wells. It just chose its prospects very, very wisely - a testament to an experienced management team - and drilled smartly... not to mention cost-effectively. By the end of 2011, its production rate hit 669 boe/d, and that figure ramped up 53% in 2012 with roughly 90 wells up and running as of the end of the year.

Aroway aims to ramp its output up to 1,200 barrels per day, at which time it expects to start attracting suitors, or will begin shopping itself. Either way, it's a tangible, achievable milestone that could serve as a catalyst for the stock.

The unique selling point is how cost-effective Aroway can drill and explore. Its operating costs per barrel of oil are less than $10.00, versus a retail price of about $90 per barrel right now. Though 90% if its current drilling activity is oil based, its also got a natural gas operation that can produce NG at a cost of only $1.10 per thousand cubic feet, versus a current retail price of $3.20.

The explorer will continue to do traditional prospecting of the right kinds of properties... prospects that should cost no more than $500K to fully develop. These prospects generally hold oil no deeper than 1500 meters down, and are seismically defined. Many of the company's existing wells already fit this profile, and the payback period for most of them is less than 60 days. These same wells can typically produce 70 to 80 barrels of oil per day for years on end. Aroway estimates its finding and development cost of $9 per barrel (assuming a 50% chance of success drilling its target-profile zones).

The company is fiscally self-sufficient too. It hasn't needed to raise through a public financing - neither debt nor equity - money since its initial IPO in late December. It raised $4 million via a private placement of flow-through units in December. The company has generated $12 million in revenue over the past four quarters, and cleared $8.9 million of that as net income before depletion, depreciation, stock based compensation and deferred income taxes (non-cash items). All those figures are projected to rise further over the course of 2013 as drilling increases

That increase in production has been reflected on the company's income statements. Though not net profitable on a trailing basis, as was noted, the ramp-up in production is pushing the company in that direction.

As for its future, the key to the company's growth and investment potential lies in the company's proven ability to acquire new properties wisely, and cultivate them effectively. As Aroway explains, it aims to acquire low-risk properties, low cost sites that can produce for eight to fifteen years.

The company will also further cultivate its existing properties with its joint venture projects. Its goal is to drill between three and five new pool exploration tests each year in the Leduc and Granite Wash areas. Each new well generates about $75,000 in monthly revenue.

Perhaps more encouraging than any other detail, though, is that its properties are by major oil companies like Birchcliff, CNRL, Crescent Point, Guide Exploration, and Bonavista. These bigger players are up and running well with properties and wells neighboring Aroway's. Their success bodes well for Aroway, which is working of the same geological formation.

Aroway Energy Properties

Aroway is presently sole owner or co-owner of three different projects, either in Alberta, Canada, or Saskatchewan,

Peace River Arch (Alberta)

The Peace River Arch is one of the most desirable light oil and natural gas liquids drilling areas in North America. The Peace River Arch is located in Northern Alberta and is renowned for its large wells (oil, gas liquids and gas). These large wells have long reserve lives and can produce for up to 15 to 20 years.

When Aroway began its operations in the Peace River Arch in 2010, land in the Peace River Arch was purchased for $50-$100 per hectare at crown land sales. Today, land is being purchased in the $300 to $900 per hectare range and prices continue to rise. The company is working six to eight development wells on the property.

Key players surrounding Aroway's lands include; Birchcliff Energy Ltd., Crescent Point Energy Corp., Canadian Natural Resources Limited and Shell Canada.

Kirkpatrick (Alberta)

The Kirkpatrick site currently has two Ellerslie tests wells, with seven potential follow-up wells on the horizon. Aroway is planning two to three new wells in the near-term. The Ellerslie EEE analog pool produced 1.39 million barrels - an encouraging sign, underscoring the upside of the 100% working interest for a mere $500K. Drill, casing, and building the tie-in will cost about $900K, and the disposal facility will cost approximately another $1.25 million. But, it's worth the expense. The site holds an estimated 100 million barrels of reserves, and its operating costs are only about $10.34 per barrel.

West Hazel (Saskatchewan)

The West Hazel property was acquired in November of last year for $2.6 million; Aroway owns 100% of the working interest. It presently has three working well and is producing approximately 285 barrels per day. Aroway aims to add/restart two wells in the foreseeable future, and will upgrade that facility en route to double production. It's also got six natural gas wells on the property.

The metrics of the West Hazel wells are nothing less than amazing. The operating costs at this sire are a mere $9.80 per barrel, and the recoverable reserves are estimated at 150 million barrels per well. That translates into a well life of more than 15 years each at average daily production. And, with a relatively small investment of a little over $1 million to install a water injection system, that reserve life could be extended.

Little Bow

Though not on par with the size of the West Hazel, Peace River Arch, or Kirkpatrick properties, the Little Bow site sill holds relative promise. Aroway's farm-in for a 100% working interest will give it access to what could be a 50 million barrel reserve... enough to last seven years. That's not bad for a million-dollar drilling, casing, and tie-in expense, especially considering the prospect as already produced 12 million barrels. Though its operating cost of $13.00/barrel is among the highest of Aroway's projects, that's still very economical.

 

http://www.smallcapnetwork.com/Aroway-Energy-ARWJF-Lilke-No-Other-Junior-Explorer-Out-There/s/via/754/analysis/view/p/mid/1/id/36/



DRILLING COMMENCED AT LITTLE BOW ON 3/4/2013

http://rigs.precisiondrilling.com/   search for rig number 431   

.

http://www.ercb.ca/data/WELLS/SPUD0226.TXT

Read more at http://www.stockhouse.com/bullboards/messagedetail.aspx?s=ARW&t=LIST&m=32258046&l=0&pd=1&r=0#yVbHffPUdp1fhlTd.99

spud date Feb 26 2013 according to ERCB report ... operator 1316751 Alberta Ltd. aquired by Aroway in Sep 2012 ...

 

http://www.ercb.ca/data/WELLS/SPUD0226.TXT

.

ref: http://www.ercb.ca/data-and-publications/statistical-reports/st49

 

Read more at http://www.stockhouse.com/bullboards/messagedetail.aspx?s=arw&t=LIST&m=32254149&l=0&pd=1&r=0#Ldk6gIJuHRljPpjO.99



Beyond the Oil Sands: Betting on Alberta's Peace River Arch Region

Small cap Canadian oil stocks Birchcliff Energy (TSE: BIR), Dejour Energy (NYSEAMEX: DEJ), Long Run Exploration (TSE: LRE) and Aroway Energy (PINK: ARWJF) are players in the Peace River Arch region of Northern Alberta, Canada.

Feb 28, 2013 3:13:47 AM PST

 

Alberta might be known as the home of oil sands but small cap Canadian oil stocks Birchcliff Energy (TSE: BIR), Dejour Energy (NYSEAMEX: DEJ), Long Run Exploration (TSE: LRE) and Aroway Energy (PINK: ARWJF) are major players in Northern Alberta's Peace River Arch region - which could become the next hot Canadian oil play with small caps already in the region becoming acquisition targets.

What is the Peace River Arch?

Located in northeast British Columbia and northwest Alberta, the Peace River Arch is increasingly being recognized for having a history of high quality reserves with significant opportunities for the recovery of new and remaining reserves of that same quality. Thanks to the region's geologic and geographic diversity, companies operating there have been rewarded with prolific oil or natural gas production. In fact, the region is renowned for its large wells that have long reserve lives as they can produce for up to 15 to 20 years.

The-Peace-River-Arch-Core-Area.jpg

Some Small Cap Peace River Arch Players

The following small cap stocks are active in the Peace River Arch area and this could also make them acquisition targets for bigger oil or gas players:

  • Birchcliff Energy. An intermediate oil and gas exploration, development and production company, Birchcliff Energy is apparently the largest producer of oil within the Peace River Arch area. Specifically, Birchcliff is focused on two Peace River Arch plays: the Montney/Doig Natural Gas Resource Play (1,850 net potential Montney/Doig horizontal natural gas drilling locations) and the Worsley Light Oil Resource Play. All told, Birchcliff Energy held 493,968 (456,952 net) acres of undeveloped land with an average working interest of 93% and a reserve life index of 36 years at the end of 2011. Back in August, Birchcliff Energy completed a preferred unit equity issue for $50 million with the proceeds being used to pay down debt and to strengthen the company's balance sheet. Birchcliff Energy has a market cap of C$1.10 billion plus the stock is down 31.7% over the past year and down 11% over the past five years.
  • Dejour Energy. Vancouver based Dejour Energy has significant oil and gas assets in key regions of Colorado, Utah, British Columbia and Alberta - including the Peace River Arch area where it has 8,500 net acres that are 75% owned and operated. Dejour Energy has done $1MM 3D seismic work that was interpreted in the first quarter of 2010 and completed the Waterflood of existing oil pools in the second quarter of 2011. Currently, the company has 9 wells (3 oil and 6 gas) there. Dejour Energy has a market cap of $27.01 million plus the stock is down 63.7% over the past year and down 89.4% over the past five years.
  • Long Run Exploration. An intermediate oil and natural gas company focused on Western Canada, Long Run Exploration has a dominant land position of 600,000 net acres in the Peace River Arch. Back in December, Long Run Exploration completed the disposition of its non-core Viking interests located in the Plato / Dodsland / Lucky Hills areas of Saskatchewan for $180 million in cash. Long Run Exploration has a market cap of $C509.69 million plus the stock is down 24.5% over the past year and down 39.4% since the end of 2009.
  • Aroway Energy. Trading as ARJWF on the OTCQX and as ARW on the TSE-V, Aroway Energy is a Western Canadian junior oil company focused on oil prospects in Alberta and Saskatchewan, Canada. Aroway Energy has a joint venture partnership in the Peace River Arch of Northern, Alberta where it and its partner have assembled a land package of 70,400 acres with 3D seismic coverage over 75% of this area. More importantly, all of these exploration and development targets are close to tie-in, gathering and plant infrastructure. It should be mentioned that when Aroway Energy began its operations in the Peace River Arch back in 2010, land could be purchased for $50 to $100 per hectare at crown land sales; but today, land is being purchased in the $300 to $900 per hectare range with prices continuing to rise. Aroway Energy has a market cap of $30.3 million plus the stock is down about 47.5% over the past year but its also up 4,669.9% over the past five years.

In other words, keep an eye on the above small cap stocks as the Peace River Arch region increasingly finds its way on the radar of big oil.

 

http://www.smallcapnetwork.com/Beyond-the-Oil-Sands-Betting-on-Alberta-s-Peace-River-Arch-Region/s/via/3414/article/view/p/mid/1/id/1213/


 

 

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