TICKER: ARW:TSX.V; ARWJF:OTCQX
Aroway Energy Inc. is a Canadian junior oil-focused production and exploration company participating in oil development and 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 110 sections (70,400 acres) with 3-D seismic coverage over almost all of its lands. All targets are in close proximity to tie-in, gathering and infrastructure owned by Aroway's partner. Aroway also has 100%-operated working interest on a 3-D seismically defined exploration property in Central Alberta and a highly economic heavy oil producing property in Western Saskatchewan.
The information provided below is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.
Mike Perinotti, Seeking Alpha
"In October 2012, Aroway Energy Inc. announced a 526% production increase reaching 146,269 boe compared to 23,351 boe for the same period in 2012. The company also reported revenues of $12,018,074, which was a 1,112% increase from 2011. . .that's amazing production and progression for a company trading around $0.25. . .enough to have me watching this company very closely."
The Energy Report Interview with Bob Moriarty
Bob Moriarty: If you are in Canada, you are in great shape. Canada has a lot of oil. I like a company called Aroway Energy Inc. It is cheaper now than it has been in the last three years—$0.30/share. It is producing over 1,000 barrels of oil equivalent per day.
TER: It just came out with a new reserve estimate on West Hazel. Was it what you expected?
BM: It's a really good number. The problem is trying to figure out what it is worth. Aroway has made money. It is cash flow positive. It has good management that does what it says it will do. With the market and the juniors getting creamed so badly over the past two weeks, Aroway stock has lost about one-third of its value. I expect Aroway to be $0.60–1.00 in three to six months. The current price is simply irrational. Canada remains one of the best environments for investment. The Canadian banks are a lot saner than banks elsewhere. Taxation is not totally out of control.
James Brumley, SmallCap Network
"The folks running Aroway Energy Inc. have gotten very, very good at drilling for oil, because they know that each well counts. . .unlike many of its peers, the company is highly selective about the properties it buys and the wells it digs. . .Aroway first and foremost considers the return on its investment. . .the company sticks with the high-odds, low-cost wells, and the discipline is paying off in spades; it's barely two years old, is operationally profitable, and only pays production costs of about $10/barrel of oil at the four sites it's focusing on right now—that's an operating expense some other oil names can only dream about."
James Brumley, SmallCap Network
"Somehow, several major oil names have let key oil well prospects slip through their fingers in northern Alberta, yielding them to a junior explorer named Aroway Energy Inc. . .by carefully choosing which properties to buy and which to pass, Aroway has pieced together an oil well network that's producing 650 bpd, with more wells in development. . .the company owns land in all the right places in northern Alberta. Most of its sites are in the backyards of bigger oil names operating in Canada, like Canadian Natural Resources Ltd., Bonavista Energy Corp. and Birchcliff Energy Ltd.; an acquisition would be logistically simple for most of those companies."
The Energy Report Interview with James West
"I love Aroway Energy Inc. because it is developing oil and gas assets in Central Alberta as well as in Saskatchewan. It has a program in place whereby in mid-2013, it plans to be producing over 2,000 bpd, and 90% is oil. It is building its production infrastructure more or less internally from cash flow, and it is in a position where it is going to be growing that domestic production in a safe jurisdiction, Canada. I think Aroway is probably one of the best-case examples of lower-risk exposure, with an experienced management team that can access the capital and that has a record of successful drilling. It recently announced its year-end production. It exited 2012 with over 1 Mboe/d, of which 90% is oil. It also has another 100 boe/d behind pipe. That's up from the 2011 exit of around 650–700 boe/d. It is also getting ready to drill a lot of wells in Saskatchewan on its West Hazel property and is expecting to double its current production of about 300 bpd oil from there. It is well on track for reaching its target."
Aroway Energy Inc. Content
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