Exhibit 99.1
[Arete Logo] COMPANY PRESS RELEASE
Arete Industries, Inc. Brings Key Professional and Industry Expertise into its
Oil and Gas Subsidiary. Colorado Oil and Gas, Inc. Appoints Three New Directors
and Three Oil and Gas Industry and Financial Consultants to its Management Team.
For Immediate Release
Thursday June 9, 2005
NIWOT, Colorado, June 9, 2005 (Business Wire) Arete Industries, Inc. (OTC -
Bulletin Board: ARET) announced today that its subsidiary, Colorado Oil and Gas,
Inc. (COG) has appointed three new outside directors, and appointed two oil and
gas industry professionals and a CPA with oil and gas, securities and tax
expertise, as professional advisors and consultants to drive its new oil and gas
acquisition and development project in Eastern Colorado. Arete also announced
acquiring an additional equity interest in its Colorado Oil and Gas, Inc.
subsidiary bringing its total interest to 85%.
William Stewart, Arete director and Colorado Oil and Gas, Inc.'s Chairman and
President, stated today, that he was pleased to announce the appointment of
Messrs. Charles R. Davis, Donald R. O'Connor, and Stanley J. Phillips as
independent directors of the Company, and that Messrs. Gerald F. Dickinson,
Consulting Petroleum Engineer, Joseph L. Sweeney, Independent Consulting
Geologist, and Donald W. Prosser, CPA have also been appointed as professional
advisors to the Company. Further, John R. Herzog, resigned from the subsidiary's
Board of Directors leaving a five man board with three independent directors.
Mr. Herzog will remain with the subsidiary company serving as Senior Vice
President and Company Secretary. "The addition of these individuals with special
oil and gas industry and financial accounting expertise to our board and as
advisors is imperative for our success as a new oil and gas company as we move
forward our initiative to acquire and develop profitable oil and gas projects,"
Mr. Stewart stated.
Mr. Davis, with over 25 years experience in oil and gas drilling and operations,
is owner of DNR Oil and Gas Company.
Mr. O'Connor, who will serve as the Company's Financial Expert and Audit
Committee Chairman, is a licensed CPA who comes from the Commercial Real Estate
development business, and will bring financial acquisition and project
development expertise to the Company's board of directors.
Mr. Phillips, an oil and gas attorney and landman with extensive experience in
oil and gas operations, mineral title and lease evaluation, and property
acquisition and divestiture project will round out the collective oil and gas
and project development expertise on the board.
Mr. Dickinson is a Consulting Petroleum Engineer with over 23 years of oil and
gas industry experience. He will provide economic evaluations and reserve
estimates for the Company's current and future oil and gas acquisition and
development operations.
Mr. Sweeney, with over 23 years experience as an Independent Petroleum Geologist
in numerous Rocky Mountain, Mid-Continent and other major US oil producing
regions, has a strong entrepreneurial bent and, as a deal evaluator and prospect
generator, will assist the Company develop the current project and help the
Company make future strategic acquisition and development decisions.
Mr. Prosser, who also serves as outside director and Financial Expert of the
Arete Board of Directors and chairman of its Audit Committee, will provide
critical corporate finance, oil and gas accounting and deal structuring input to
the Company as it executes its roll-out as an independent oil and gas producer.
As announced on May 23, 2005, Colorado Oil and Gas has agreed to purchase
thirteen producing oil and gas wells with in-fill development potential for up
to 5 additional wells, including one re-completion in a new producing zone of an
existing well, located in 9 different producing oil and gas fields and in
various producing horizons of Colorado's DJ basin and the northern end of the
Hugoton Embayment located across the eastern half of Colorado. The Company has
set the Closing date to purchase the project at June 15, 2005 subject to a 15
day extension.
About the Company. Arete Industries, Inc., a development stage company, is a
publicly traded holding company with several subsidiaries. Its subsidiary,
Colorado Oil and Gas, Inc. ("COG") was formed to pursue the acquisition of
certain small producing oil and gas properties in eastern Colorado in November
of 2004, when these properties were identified for possible acquisition. If the
current project described in previous releases is acquired and developed, it is
the intent of the Company to spin-off COG to the Company's shareholders so that
it can operate as an independent company. The Company also owns a majority
interest in Aggression Sports, Inc. dba Arete Outdoors, an outdoor sports
equipment manufacturing company that has been inactive since 2001. The Company
is currently looking to sell this subsidiary or liquidate its assets. The
Company continues to seek other business acquisitions.
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. These statements may
include projections and other "forward-looking statements" within the meaning of
the federal securities laws. Any such projections or statements reflect Arete's
or COG'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 to differ materially from those projected
include, without limitation, COG's inability to meet the conditions to acquiring
its current project including providing financing to pay the purchase price or
discovery of material title or environmental defects that cannot be resolved;
the volatility in commodity prices for oil and gas, the presence or
recoverability of estimated reserves, the ability to replace reserves,
environmental risks, drilling and operating risks, exploration and development
risks, competition, government regulation or other action, the ability of
management to execute its plans to meet its goals and other risks inherent in
their businesses that are detailed in their Securities and Exchange Commission
("SEC") filings, including the Current Report on Form 8-K filed May 23, 2005,
relating to the purchase agreement referred to herein.
For Further Information Contact:
Company Contact: Arete Industries, Inc. Colorado Oil and Gas, Inc.
Karen Hemmerle, Corporate Communications Bill Stewart, President
Email: ir@areteindustries.com Email: ir@areteindustries.com
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Arete Industries, Inc. Colorado Oil and Gas, Inc.
7102 La Vista Place, Suite 100 7260 Osceola Street
Niwot, Colorado 80503 Westminster, Colorado 80030
Voice: 303-652-3113 Voice: 303-427-8688
Fax: 303-652-1488
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