Exhibit 99.1


                              COMPANY PRESS RELEASE

                    Arete Industries, Inc. Acquires Exclusive
                      Rights to Purchase and Fund Three Oil
                     and Gas Drilling and Re-Work Prospects

                              For Immediate Release

Tuesday, December 14, 2004

NIWOT, Colorado, December 14, 2004 (Business Wire) Arete Industries, Inc. (OTC -
Bulletin Board: ARET) announced the exclusive right to acquire three oil and gas
drilling,  re-entry,  and re-work prospects  located in Texas and Oklahoma.  The
Company has  negotiated  a 45 day initial  exclusive  period to review terms and
obtain  indications of interest from investment  sources.  Following an internal
evaluation,  the Company gained the requisite confidence to lock up the deal and
take it to its financial consultants for their review and approval.

Thomas  P.  Raabe,  Arete CEO  stated,  "We are  pleased  that the  Company  has
completed  its  first  tier  due  diligence  on this  project  and  that we have
presented it to our financial  consultants for evaluation." "The Company,  while
constrained  by contract to withhold the specific  proposed deal terms and other
proprietary   information   about  these   prospects,   will  announce   further
developments as they materialize and become confirmed." Raabe concluded.

About the Company. Arete Industries,  Inc., a Colorado Corporation, has recently
embarked  upon a new  business  direction  in  the  Traditional,  Renewable  and
Alternative  Energy  sectors.  The Company is pursuing  existing  production and
conducting drilling,  re-entry and reworking projects in known, existing fields,
including  overlooked and by-passed  reserves,  using state of the art oil field
exploration, drilling, completion and production enhancement technology.

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. Such risks include the
fact that the  prospects  being  pursued by the Company are not yet secured with
contracts,  nor have binding  commitments for financing been obtained,  and that
the Company will continue to compete with other  investors for  acquisitions  or
investments in viable  projects that are more  established  and have far greater
resources  than the Company,  and therefore no  assurances  can be made that the
Company will be  successful in obtaining  financing nor in being the  successful
bidder for participation in the better opportunities.

For Further Information Contact:

Company Contact:
Thomas P. Raabe, CEO and Chairman of the Board
Email: ir@areteindustries.com
Arete Industries, Inc.
7102 La Vista Place, Suite 100
Niwot, Colorado 80503
Voice: 303.652.3113
Fax: 303.652.1488