Calgary, Alberta / ACCESSWIRE / February 13, 2014 / AROWAY ENERGY INC. (TSX-V: ARW) (OTCQX: ARWJF) (http://www.arowayenergy.com/) (the “Company”) is pleased to announce that the Company has executed a farmout agreement with two private companies who will jointly construct and install a water disposal facility to service Aroway Energy’s owned and operated West Hazel heavy oil property in western Saskatchewan. The private companies will begin building the disposal facility immediately, including the drilling of a new disposal well into the Dina formation. These new facilities will provide Aroway Energy with sufficient water handling capacity to facilitate the recompletion of two existing shut-in wells, new infill drilling, as well as our planned optimization on the existing producing wells. Current heavy oil production at West Hazel will be temporarily shut-in during construction to accommodate the safe installation of the facilities. The two private companies will own and operate the facilities until a certain payout is reached, when Aroway then becomes the majority working interest owner and operator.
Chris Cooper, President & CEO commented, “The new disposal facility is the key component in Aroway’s plan to optimize production at West Hazel. The new facility will provide more than enough capacity for Aroway to turn on existing shut-in wells and drill new infill wells immediately adding production and significantly reducing our operating costs.”
Key attributes of the disposal facility:
- Replaces the west hazel fields’ current water trucking and disposal costs,
- Significant reduction in operating costs, both now and over the fields’ producing life,
- Allows the company to recomplete two suspended wells, thereby increasing the heavy oil production,
- Facilitates the economics and drilling of new infill wells,
- Extends the reserve life of the property.
Mr. Cooper further commented, “We plan to continue to produce our new Kirkpatrick Lake oil well at a rate of approximately 100 barrels per day until the disposal facility is constructed and in full operation, in order to maintain steady cash flow while West Hazel is shut-in. We will begin to increase the production rate on the new Kirkpatrick Lake well to a level that remains within the maximum rate limitation of the pool while preserving the long-term integrity of the reservoir.”
ABOUT AROWAY ENERGY INC.
Aroway Energy Inc. is a western Canadian junior oil production and exploration company participating in oil development & exploration prospects in Alberta and Saskatchewan. Aroway operates and owns a 100% working interest, operated heavy oil producing property in West Hazel, Saskatchewan, and a 100% working interest, operated light oil producing property in Kirkpatrick Lake in Central Alberta, as well as it has access to alarge contiguous prospective land base in the Kerrobert area of West Central Saskatchewan. Through a joint venture partnership, Aroway also owns a 50% working interest property in the Peace River Arch of Northern, Alberta with 80 sections (51,200 acres) of land with 3D seismic coverage on the majority of the land base, with the area infrastructure controlled and owned by Aroway’s Joint Venture Partner.
ON BEHALF OF AROWAY ENERGY INC.
President & CEO
For further information, please contact:
Aroway Energy Inc.:
Chris Cooper, President & CEO
Toll Free: 1-855-427-6929
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. 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.
Source: Aroway Energy Inc.