WESTMINSTER, Colo., May 16, 2011 (GLOBE NEWSWIRE) -- Arete Industries, Inc. (OTCQB:ARETD) announced that a purchase and sale agreement for the purchase of oil & gas properties was agreed to and signed on April 12, 2011.
The Board of Directors voted to approve the purchase of oil & gas properties in Wyoming, Colorado, Kansas, and Montana. The agreement had several items to be finalized including the requirement of a cash down payment, the review of the Ryder Scott reserve study, and short-term financing. The cash payment was made on May 12, 2011; the short-term financing was completed and executed.
The $10,000,000 purchase includes ninety-one operating wells, approximately thirty-seven thousand gross acres that includes approximately twenty-one thousand net acres under lease, and approximately 250 PUDs. In addition to the current production and cash flow, the property offers a large opportunity for future development and we are in the process of evaluating its potential. We plan to have a short-term (one year) drilling plan out by the end of May 2011.
"We are really excited with finally putting this deal together. We have a lot of work to do in the next several weeks. We will finalize the evaluation of the oil and gas properties, work on our drilling plan, bring on at least two new board of directors, and hire an oil & gas chief financial officer before June 30, 2011," stated Donald W. Prosser, Chief Executive Officer and Chairman of Arete Industries, Inc.
Make sure you are first to receive timely information on Arete Industries when it hits the newswire. Sign up for Arete's email news alert system today at: http://www.areteindustries.com/alerts.
About the Company
The Company is the operator of a gas gathering system and oil and gas properties in the Rocky Mountain Region of the United States. The Company is also pursuing projects that have significant upside potential and can produce significant revenue. As the projects are developed, Arete, or entities created by Arete, will have ownership interests in the revenue streams, which can be securitized and collateralized either equity or private debt holders. Enabling the company to continue to grow, fulfill its ongoing financing requirements, and create value for its shareholders. For additional information on the Company visit our website at www.areteindustries.com
Statement as to Forward Looking Statements.
Certain statements contained herein, which are not historical, are forward-looking statements that are subject to risks and uncertainties not known or disclosed herein that could cause actual results to differ materially from those expressed herein. These statements may include projections and other "forward-looking statements" within the meaning of the federal securities laws. Any such projections or statements reflect Arete's current views about future events and financial performance. No assurances can be given that such events or performance will occur as projected and actual results may differ materially from those projected. Important factors that could cause the actual results to differ materially from those projected include, without limitation, Arete's inability to meet the conditions to acquiring its current business including providing financing to provide for servicing current and new contracts; unexpected difficulties encountered in the investment market, competition, government regulation or other action, the ability of management to execute its plans to meet its goals and other risks inherent in their businesses that are detailed in their Securities and Exchange Commission ("SEC") filings.