In A Good Spot Oil-Heavy Aroway is a Likely Takeover Target By Robert Owen
With no end in sight to uneconomical natural gas prices, Canadian energy companies strive ceaselessly to improve their oil-to-gas production ratios. This has led to a surge of drilling in such oil-rich formations as the Cardium, Viking and Bakken. Of course it is always easier for majors and intermediates to simply buy juniors with good ratios.
One junior close to being almost entirely oil-based is Aroway Energy (ARW:CA). With most of its operations based within northeast Alberta’s Peace River Arch, Aroway recently surpassed its 2011 exit production target of 600 barrels of oil equivalent per day (boe/d) by over 10% (to 670 boe/d).