Aroway Boosts Production at Peace River Arch Prospect

Aroway reported that the Company's 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, which is located in Peace River Arch oil and gas exploration prospects, was placed on restricted flow rate in late May, and in early June the well began to produce oil. Based on the present well pressures and the operators' conservative production practises, the well is expected to stabilize at a rate of 400 boe/day, 200 boe/day net to Aroway. The oil produced from the well is produced and pipelined to a facility owned by the Company's Joint Venture Partner and well operator. Aroway is paying 50% of all costs associated with this well to earn a 50% interest in the well.

The Company also reports that total depth has been reached on the third well of the 2011 drilling program. The well encountered numerous potential hydrocarbon bearing zones in the Triassic deposits and based on the drilling logs, the well will be evaluated in each of the prospective zones. A 100 meter pipeline tie-in has begun and will be complete in the next week, and the well will be production tested directly into the pipeline. Aroway is paying 50% of all costs associated with this well to earn a 50% interest in the well.

Testing on the Company's second well of the 2011 drill program will commence as soon as the roads dry out as heavy rains have hit the area over the past week. We are confident the service rig will be on the location and testing will begin within the next 10 days.

Chris Cooper, President of Aroway commented, "We were quite confident that our first well of 2011 would end up as an oil well as soon as the gas cap was produced. We will have concrete Company production numbers in coming weeks which will bring us much closer to our year-end target of 600 boe/day."