Exhibit 99.1
COMPANY PRESS RELEASE
Arete Industries, Inc. Subsidiary to Acquire a Pool of Small Producing Oil
and Gas Interests. Colorado Oil and Gas, Inc. Buys Mineral Interests and
Overriding Royalty Interests in Colorado, Texas, Oklahoma and Wyoming.
For Immediate Release
Friday June 24, 2005
NIWOT, Colorado, June 24, 2005 (Business Wire) Arete Industries, Inc. (OTC -
Bulletin Board: ARET) announced today that its subsidiary, Colorado Oil and Gas,
Inc. (COG), agreed today to purchase a pool of minor mineral interests and with
producing wells operated by third parties in Colorado, Texas, Oklahoma and
Wyoming from a company owned by the subsidiary's president. The purchase follows
the Company's plan to buy small producing assets to provide asset value and cash
flow to support further acquisition activities.
The purchase will be in the form of an assignment of these interests to COG for
a price of $200,000 in the form of a secured promissory note in that amount with
interest only payable monthly and a 12 month balloon payment. The effective date
will be July 1, 2005.
The purchase was not at arm's length, and the mineral interests will be
appraised by a third party petroleum engineer. Following receipt of the
appraisal, the purchase price will be adjusted upward or downward, to a minimum
of $150,000 and a maximum of $250,000. If the appraisal is less than $150,000,
COG may reject the purchase, and if greater than $250,000, the price will not be
adjusted above that amount. The mineral interests currently generate
approximately $1,900 of income per month.
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 small
producing oil and gas properties and mineral interests, as an entry strategy to
developing into a full size oil and gas company. The Company has one other
subsidiary, Aggression Sports, Inc. dba Arete Outdoors, an outdoor sports
equipment manufacturing company that has been inactive since 2001. 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.
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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