WESTMINSTER, Colo.--(BUSINESS WIRE)--Arête Industries, Inc. (OTC—PK: ARET) announces that the Company has signed a renewed definitive agreement to purchase oil and gas properties in Wyoming, Colorado, Kansas, and Montana expected to close during the week of March 14, 2011.
The deal, a renewal of the deal announced March 29, 2009 was adjusted for any changes in existing well operations during that interim period. The Company expects to purchase the properties during the week of March 14, 2011. The purchase price remains at $10,000,000 in cash and other consideration. The purchase will be financed with bank debt and loans from private sources. A reserve study is being conducted by Ryder Scott Consultants LLC and a summary of that study and related documents from the agreement will be published upon closing of the transaction in March 2011. We plan to complete our evaluation of the properties and leases and plan to have a development plan in place by early April 2011.
We plan to complete the remaining filings due for Arête Industries, Inc. and be current by the early part of the week of February 28, 2011. “This has been a long time coming and we have worked very hard to make this happen. We are evaluating the pipeline operations and are looking at ways to increase revenues from that operation. We expect that the acquisition of these assets will be the start of our long term development plan for Arête,” stated Donald W. Prosser, Chairman of Arête Industries, Inc.
About the Company
Arête Industries, Inc. is a publicly traded company. The Company is the operator of a gas gathering system and is in the process of buying oil and gas properties in the Rocky Mountain Region of the United States.
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 Arête’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, Arête’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.