Arete Industries (ARET)

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WESTMINSTER, Colo., May 31, 2011 (GLOBE NEWSWIRE) -- Arête Industries, Inc. (OTCQB:ARET) announced that it has closed a $10 million acquisition to purchase certain oil and gas operating properties in Colorado, Kansas, Wyoming, and Montana. The agreement includes an operating agreement for the continued operations of the properties by the current operator, a company owned by Charles B. Davis, a director of the Company. The properties were purchased from a company owned by Charles B. Davis and its affiliates. The acquisition was effected through payment of $500,000 and a $9.5 million seller-financed promissory note due July 1, 2011. The note is secured by all of the acquired properties. The Company is seeking financing to pay the note.