Aroway Energy Inc.

COMPANY DATA | INTRODUCTION | PROJECT IN HAND | MANAGEMENT
NEWS UPDATE | CHINESE

Address:	Suite 1910 - 1055 West Hastings Street Vancouver, B.C. Canada V6E 2E9
Tel No.:	(604) 304-4090
Fax No.:	(604) 909-2679
Web Site:	www.arowayenergy.com
Corporate Email:	jpottinger@arowayenergy.com
Contact Person:	Judy-Ann Pottinger
Position:	Corporate Communications

COMPANY DATA

Traded Market:	TSX-V
Traded Symbol:	ARW
Outstanding Shares:	34.9 Million
Fully Diluted:	55.9 Million
52 Week High:	$ 0.57
52 Week Low:	$ 0.16
Present Price:	Click Here

INTRODUCTION

Aroway Energy Inc. is a Canadian junior oil and gas exploration, acquisition, and production company, focused on participating in non-operated Peace River Arch oil and gas exploration prospects in Alberta, through a Joint Venture Partnership. The Joint Venture Partner is the operator.

The exploration program is targeting Leduc formation oil and liquids-rich gas reserves with up to 10 additional prospective zones penetrated down to the Leduc target depth at approximately 2,300 meters.

Aroway is currently producing approximately 225 boe per day.

Investment Highlights

Aroway is currently producing approximately 225 boe per day (net) of conventional production; comprised of approximately 1.07 mcf gas and approximately 25 bbls of liquids.
The Joint Venture Partnership agreement gives Aroway access to a substantial land base of over 79 Sections with 3D seismic database covering approximately 90% of the land base.
The land base has a large inventory of oil, gas liquids and gas prospects with up to 10 prospective zones being evaluated in every test well.
Access to an established and experienced technical team with proprietary 3D seismic modeling and interpretation abilities.
Guaranteed access to the only nearby third party gas gathering compression and sales pipeline infrastructure, owned by the Joint Venture Partnership Operator.
No corporate debt and a low general and administrative cost structure due to nature of the Joint Venture Partnership Agreement.
The Joint Venture Partnership Operator is investing 25% of the well costs in every exploration prospect drilled and is operating the wells long term.

PROJECT IN HAND

Peace River Arch Project, Alberta

The Worsley area is located in the Peace River Arch area of Alberta and is renowned for its large wells (oil, gas liquids and gas). These large wells have long reserve lives and can produce for up to 15 to 20 years.

Through employment of new 3D seismic modeling and interpretation, the Joint Venture Partnership operator has been able to identify 4 highly prospective targets. The first target is now producing.

Each well typically operates 8-14 prospective oil and gas hydrocarbon zones, which results in a high chance of success in each well.

Exploration Highlights

High chance of success exploration program area, given the stacked prospective zones characteristics of the exploration program.
The stacked prospective zone package contains the Montney and Nordegg zones, which may become economic and technically feasible resource plays.
Low operating costs structure area: $7 per barrel for oil and a $1.05 per mcf gas, high net backs - greater than $60 per barrel, $2.35 per mcf of gas produced, low finding and development costs - $7 per barrel and $0.50 per mcf gas.

2011 Drill Program

Prior to Break up:

A total of three (3) additional wells will be drilled prior to break-up
- Two new pool Leduc targets, with up hole potential
  - The first Leduc well of the 2011 drill program has been drilled, cased and completed and is waiting pipeline tie-in
  - Drilling operations on the second Leduc well have begun and is expected to reach total depth by mid April
- One Triassic Oil pool target (Charlie Lake and Montney zones at approximately 1,500 metres).

After Break up:

Up to three (3) additional wells (with multi prospective oil focused type targets) are being worked in addition to several identified Leduc targets, all in close vicinity to the infrastructure and within the 3D seismic coverage.

The Opportunity

Access to over 79 Sections of land - significant land holdings in the area
Three (3) successful wells drilled to date
Six (6) drill targets identified thus far for the 2011 drill program
No corporate debt

Joint Venture Partnership Relationship

Aroway pays 75% of all costs to earn 50% of all revenues in the exploration program. Amendment to original agreement allows for 50-50 participation on additional acquired lands.
Provides access to substantial land base with attractive drilling and production metrics
Stacked prospective zone targets maximizes chance of success
The Joint Venture Partner is investing 25% of their own money into each well
Low general and administrative costs due to the Joint Venture Partnership arrangement.

Company Goals: 2011

Continue to fund the drilling of Leduc and oil focused targets within the land base to increase the Company's production and revenue stream.
Pursue smaller but key land purchases and strategic property acquisitions in the Worsley area.
Pursue, with the Joint Venture Operator, a new core area that fits with the existing technical competencies.
Increase production to a minimum of 600 boe per day by the end of 2011
Raise awareness of the Company with an emphasis on strong communication with all shareholders

MANAGEMENT

Officers and Directors

Chris Cooper, BBA, MBA, President & CEO
Mr. Cooper has over fourteen years experience in oil and gas management and finance. He co-founded several successful junior and intermediate oil and gas companies including Benchmark Energy Corp., Choice Resources Corp., Watch Resources Ltd. and Banks Energy Inc.

Daryn Gordon, CA, Chief Financial Officer and Director
Mr. Gordon is a chartered accountant with over twelve years of finance and accounting experience with publicly traded companies. Mr. Gordon acquired a high level of experience with junior energy companies.

Desmond Balakrishnan, B.A., LL.B, Director
Mr. Balakrishnan is a Partner of McMillan LLP since 2004. Currently Director, Corporate Counsel or Corporate Secretary of several junior resource companies.

Brad Nichol, P.Eng., MBA, Director
Mr. Nichol has over 10 years of experience as executive and director with various firms. Currently President & CEO of Edge Resources.

Mike Veldhuis, B.A., M.A., Director
Mr. Veldhuis has assisted both private and public companies in structuring and obtaining debt and equity facilities since 2003. Mr. Veldhuis is currently a director of Upton Capital Corp.

NEWS UPDATE

On February 2, 2012, Aroway Energy Inc. announced that the Company and its joint-venture partner have commenced fieldwork on an approximate 55-square-kilometre 3-D seismic program. The 3-D seismic program will increase the Company’s seismic coverage by 75 per cent.

On December 28, 2011, Aroway Energy Inc. announced first quarter 2012 and operational results. Aroway Energy earns $696,141 in Q1 2012. The Company announced that it has filed on SEDAR its interim financial statements and related management discussion and analysis (MD&A) for the three months ended September 30, 2011.

On December 14, 2011, Aroway Energy Inc. announced that it has met and surpassed its 2011 year-end production target of 600 barrels of oil equivalent per day. Aroway will exit 2011 with net production of 669 barrels of oil equivalent per day.

On November 10, 2011, Aroway Energy Inc. announced that it has secured a drilling rig and commenced drilling the first of three deep pool test wells scheduled for completion before year-end. This event marks the beginning of the Company's 2011/2012 winter drill program.

On October 17, 2011, Aroway Energy Inc. announced that it has received gross proceeds of $2,274,941 from the exercise of 100 per cent of the share purchase warrants issued on Oct. 13, 2010. Furthermore, Aroway reports that the Company has executed a commitment letter with Canadian Western Bank for credit facilities totalling $4.5-million.

On October 5, 2011, Aroway Energy Inc. announced that it has appointed Daryn Gordon as the Company’s new Chief Financial Officer and new director effective October 5, 2011. Mr. Gordon is a chartered accountant with over twelve years of finance and accounting experience with publicly traded companies. Mr. Gordon acquired a high level of experience with junior energy companies.

The Company also announced the appointment of Mike Veldhuis, B.A., M.A., to its board of directors. Mr. Veldhuis has assisted both private and public companies in structuring and obtaining debt and equity facilities since 2003. Mr. Veldhuis is currently a director of Upton Capital Corp.

In order to make way for Mr. Gordon, Mr. Dennis Mees has resigned as both Chief Financial Officer and director of the Company.

On September 19, 2011, Aroway Energy Inc. announced that it is ahead of schedule on its 2011 year-end production target of 600 barrels of oil equivalent per day. Aroway’s current net production is 530 barrels of oil equivalent per day from the Company’s Peace River Arch core area. Aroway expects to surpass its 2011 production target before year-end.

On August 18, 2011, Aroway Energy Inc. announced that it has appointed Dave Contrada as its new manager of engineering. Mr. Contrada brings over 10 years of experience in exploitation, production, operations and facilities engineering, identifying and evaluating property acquisitions, development strategies, production optimization, engineering reports, and budgeting.

On July 21, 2011, Aroway Energy Inc. announced that together with its joint venture partner, was successful in acquiring 15 sections of land at a recent Alberta Crown land sale. The newly acquired lands are adjoining the partnership's existing core area landholdings in the Peace River Arch. Aroway now has access to approximately 90 sections of rights.

On July 7, 2011, Aroway Energy Inc. announced that together with its joint venture partner, has completed a transaction to acquire 10 sections of land in its core area with a third party private oil and gas company. The acquisition includes six existing wellbores, typically drilled to the base of the Leduc. As a result of the agreement, the partnership will begin a recompletion program on the six acquired wellbores in addition to two other wellbores that have become available under the Company's initial partnership deal. Aroway's third well of the 2011 exploration program will be tested and completed in the coming days.

On June 27, 2011, Aroway Energy Inc. announced its first well of the 2011 drilling program has been on a stable production for 20 days and is producing oil, natural gas liquids and gas from the targeted Leduc formation, the well is expected to stabilize at a rate of 400 barrels of oil equivalent per day. The Company also reported that total depth has been reached on the third well of the 2011 drilling program.

On June 14, 2011, Aroway Energy Inc. announced that it has begun drilling operations on the third well of its 2011 exploration program. The well will be drilled to a depth of 1,225 metres targeting oil in the base of the Debolt formation.

On May 31, 2011, Aroway Energy Inc. announced that its first well of the 2011 exploration program flows at 256 boe/d of natural gas and natural gas liquids. The Company also announced that it will be drilling the third well of its 2011 exploration program within the next 10 to 14 days.

On March 22, 2011, Aroway Energy Inc. provided update on its 2011 joint venture drilling operations in the Peace River Arch area of Alberta. The Company's first well of the 2011 exploration program has now been drilled, cased and completed and is awaiting pipeline tie-in. This multi-prospect exploration well was drilled to an approximate depth of 2,300 meters targeting the Leduc formation. The Company is paying 50% of all costs associated with this well to earn a 50% interest in the well.

Drilling operations have begun on the Company's second Leduc exploration well. The multi-prospective well will be drilled to an approximate depth of 2,260 meters targeting the Leduc formation. The 3D seismically defined multi-zone prospective well is also being operated by the Company's joint venture farm in partner with the Company paying 75% of all costs associated with this well to earn a 50% interest in the well. This exploration well is expected to take approximately 10 days to reach total depth.