Aroway Energy (V.ARW) gets oil price boost, stock up 5.6%
Shares of Aroway Energy Inc. (TSX: V.ARW, Stock Forum) rallied Wednesday, a move that CEO Chris Copper attributed to rising oil prices and speculation that prices could be driven high if the U.S. and its allies launch an intervention in Syria.
The shares were up 5.6% to 28 cents, leaving the company with a market cap of $17.3 million, based on 61.7 million shares outstanding. The 52-week range is 69 cents and 20 cents.
In an interview, Cooper said the higher oil price is prompting some debt-laden companies to raise cash by putting properties up for sale. He said that should spell opportunities for companies like Aroway, which is on the hunt for acquisitions in the conventional oil space.
“We are looking at conventional acquisitions, all oil,’’ said Cooper, adding that the junior’s strategy is to build on existing production and cash flow, while reducing operating costs.
“We are on pace to exit our first quarter with about $3.6 million in revenue,which would be the best we have ever done in a quarter,’’ he said. By November the company expects to have only $2.3 million of debt on its balance sheet.
Aroway has large development plans in Kirkpatrick Lake [Alberta] and West Hazel [Saskatchewan], which are currently in production.
After securing regulatory approval to install a new water disposal well, the company is hoping to double the production rate at West Hazel to 600 barrels per day.
Cooper recently told Stockhouse that he is targeting up to 1,300 barrels per day of production by the end of 2013. That’s up from 1,000 barrels per day in March 2013.
