Perhaps the dates were hopeful, but, they have always delivered. these guys didn't work this hard, this long for .60/share. They see the future and you either believe or not. It's as simple as that. I'm long and strong! Good luck to all that are...
The company has acquired properties include current production of approximately 150 Barrel Oil Equivalents per Day (BOEPD) or 63,875 BOE on an annualized basis. Expected 2011 Drilling Plans include: Drill five wells in the Big Bow Field; Drill two wells in Smokey Creek; Refrac three wells in the Walsh Field; and Recomplete two wells in School Creek.
The Company expects to refrac and recomplete eight School Creek wells and drill three School Creek wells on a joint venture basis for an estimated cost of $5.15 million. With the additional expected production, we expect 1,665 BOE daily production or an annualized production of 387,630 BOE exiting 2012.
Donald Prosser, CEO of Arete Industries, said, "We are excited to begin executing on our drilling program to increase revenues and shareholder value. To maximize this opportunity, we have a lot of information to evaluate and decisions to be made. We expect to have a medium term plan by mid-summer and we our also exploring horizontal oil and gas joint ventures."
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 Davis and its affiliates.
Donald Prosser, CEO of Arete Industries stated: "We are pleased to announce the completion of this significant acquisition for Arete Industries. These oil and gas properties have good productivity and we believe they have significant opportunity to drill out the acreage for a relatively small amount of capital outlay. With this acquisition we expect to seek high double-digit revenue growth over the next few years as we execute on a drilling program."
