Industries, Inc. Announces Acquisition of Gas Pipeline.
September 13, 2006
Colorado, September 13, 2006 (PR Newswire) Arête Industries, Inc. (Pink Sheet,
Inc.: ARET) announces
the purchase of a pipeline and change in trading status.
Industries, Inc. announced today the purchase of the TOP Gathering System
located in Campbell County, Wyoming for $330,000 cash from PRB Energy, Inc..
TOP system was constructed in late 2001 and began operations early in 2002.
system consists of 4.5 miles of 8-inch coated steel pipeline. The pipeline
services producers of coal-bed methane in the Powder River Basin and is
currently gathering from 33 wells operated by an independent natural gas
company, transporting approximately 1.25 million cubic feet of gas per day.
gathering system has a current throughput capacity of approximately 4 to 30
million cubic feet (“MMcf”) of gas per day based on the compression attached to
the pipeline. Our current fees of transportation will average $0.80 per thousand
cubic feet (“Mcf”) and gathering fees are subject to contracts that expire 2012.
Arête is in negotiations with the well owners and leaseholders of the current
wells attached to the pipeline to purchase or participate in the development
the other gas zones in the region. The pipeline has capacity of three times
much gas as is presently being delivered, based on current compression, and
developing the present leases would help fill that capacity. The purchase of
pipeline is part one of Arête’s four part program of merging and acquiring
operations. The pipeline will provide cash flow for Arête to raise money to pay
off the remaining debt, purchase working interests and complete the merger
oil & gas properties it has been negotiating for. The funds for the pipeline
have been provided by directors of the Company and no plan has been finalized
the repayment of the funds.
Company received a letter from The Nasdaq Stock Market on August 23, 2006,
informing the Company that the Company was delinquent in its reporting
obligations because of a late filing of the Quarterly Report on Form 10-Q for
the quarter ended June 30, 2006 with the U.S. Securities and Exchange
Commission, which resulted in the Company's non-compliance with Nasdaq's timely
filing requirement for a 12b - 2 company.
Nasdaq further advised that pursuant to Rule 6530 (c), the securities of the
Company are not eligible for quotation on the OTC Bulletin Board and therefore
will be removed effective September 13, 2006.On August 24, 2006 the Company
submitted a request for a hearing to the NASDAQ. On September 6, 2006 the
Company had an oral hearing date and the results were that due to the facts
the Company being a 12b - 2 company with no assets or operations the decision
was that the Company is not eligible to trade on the OTCBB and the Company
reapply when they are eligible or one years which ever is sooner. The Company
will trade on the Pink Sheet exchange under the symbol ARET and plans to apply
to the OTCQX for listing when they begin operations on January 1, 2007.
as to Forward Looking Statements.
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
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
plans to meet its goals and other risks inherent in their businesses that are
detailed in their Securities and Exchange Commission ("SEC")
Further Information Contact:
Contact: Arete Industries, Inc.
O. Box 141