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Aroway Energy To Increase Production March 2014

|Includes: Aroway Energy, Inc. (ARWJF)

Hello everybody, I am an ARW shareholder and I'll provide a brief update of one stock I own and I believe is ready to move up soon due to production and assets valuation increase.


WEST HAZEL - SASKATCHEWAN (net back $42 per barrel)

West Hazel currently being upgraded with a water disposal facility, disposal well, upgrades and 2 more existing wells to be turned on, for an increase production from 275boed to 400boed. Timeline for completion around 4 weeks, to be ready by mid-March 2014.

The 1.4mil cost for all these are paid over 11 months with the same expense they had before for the water trucking. The deal seems to be a win - win for both Aroway and company doing the work. The bigger winners of this deal are ultimately Aroway existing shareholders like me because there is NO DILUTION, an existing cost Aroway paid anyway is re-directed towards the new facility, and in the same time the West Hazel property reserves will increase and production will grow to 400boed+.


KIRKPATRICK LAKE - ALBERTA(net back $60 per barrel)

Kirkpatrick current production is about 300boed according to Chris Cooper, Aroway Energy CEO ... 200boed from existing producer well + steady 100boed+ from new drilled well which was tied in production mid Jan 2014. The new well production will start to be increase more up to 240boed after West Hazel upgrades completed by mid March.



3D land survey completed, data is currently analyzed for drilling targets.


Company debt:

Aroway debt was around 4.7mil at the end of 2012, was reduced to 1.9mil at the end of 2013 and currently is around 1.5mil being paid down monthly at a 200k/month. The company debt will be ZERO in a few more months before the end of 2014 according to CEO. Last quarter reported Q1 - Jul - Sep 2013 was net positive. Q2 - Oct - Dec 2013 will be reported in the next 2 weeks and I expect to be good. I plan to post another update as soon as it is reported.



Aroway production estimate starting mid March 2014 going forward will increase to around 700boed ( 300boed Kirkpatrick and 400boed+ from West Hazel), with potential to go to 800boed if the new Kirkpatrick well prod will be increased even more.


Number of shares outstanding : 61mil

Management and insider ownership: 22%


Please call Aroway Energy and speak with C. Cooper, CEO in order to confirm my updates above. These are my findings from news releases and questions to Aroway management, production estimates are in my opinion and you should verify doing your own DD. You can find more info here:

Disclosure: I am long ARWJF.