Arete Industries, Inc. Announces the Sale of a Portion of Leases for Approximately $5.0 Million in Proceeds With a $2.66 Mill...
August 30 2011 - 7:45AM
Arête Industries, Inc. (OTCQB:ARET) today announces it has paid
$3.7 million in connection with its previously announced
acquisition of certain oil and gas generating assets. In addition,
the Company announced that it sold a portion of its recently
acquired assets in which it had a profits interest. Arête
received an allocation of $2,385,918 against the original purchase
price of $11,000,000 due related to the acquisition. According
to the "Satisfaction of Agreement Regarding Application of
Proceeds", Arête received a credit on the sale of $4,966,139.
Therefore, Arête's gain on the sale or profits interest is
$2,655,221 or $0.35 per share. This enabled Arete Industries, Inc.
to make a payment of approximately $1.2 million on the next
installment due September 15, 2011.
Donald Prosser, Chairman and Chief Executive Officer of Arête
Industries, Inc., commented, "We are excited to announce this next
step towards the completion of this landmark acquisition with the
sale of the aforementioned assets for a significant profit."
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About the
Company
The Company is the operator of a gas gathering system and holds
oil and gas properties in the Rocky Mountain Region of the United
States. For additional information on the Company visit our
website at http://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 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, whether the
Company will be able to arrange for adequate financing for the
remaining $5.2 million to close its planned acquisition of oil and
gas properties, the Company's dependence on its management, the
Company's lack of capital, changes in prices for crude oil and
natural gas, the ability of management to execute plans to meet the
Company's goals and other risks inherent in the Company's
businesses that are detailed in the Company's Securities and
Exchange Commission ("SEC") filings. Readers are encouraged to
review these risks in our SEC filings.
CONTACT: Arete Investor Relations:
Gerald Kieft
The WSR Group
772-219-7525
IR@theWSRgroup.com
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