Arete Industries, Inc. Announces Acquisition of Oil & Gas Property

WESTMINSTER, Colo., Aug. 25 /PRNewswire-FirstCall/ -- Arete Industries,
Inc. (Pink Sheets: ARET) announces that the Company received a letter of
intent to purchase oil and gas properties in Wyoming, Colorado, Kansas, and
Montana from Denver based oil & gas and operating companies for $21,000,000 in
cash.
The wells being offered by the Denver based oil & gas company total 243
wells, including 46 operating wells (PDP) and 197 PUDS (PUD). The current
operating wells at today's oil and gas prices will generate cash flow of
approximately $7,000,000 a year or a monthly cash flow of $585,000. Arete
purchased the TOP Gathering System located in Campbell County, Wyoming in
September of 2006. This pipeline is connected to oil & gas properties in
Wyoming and is currently transporting approximately 900,000 Mcf of gas per day
for the wells being purchased and is cash flowing from its operations. The
pipeline has capacity of three times as much gas as is presently being
delivered, based on current compression, and developing the present leases
would help fill that capacity. The purchase of the pipeline is part one of
Arete's four part program of merging, purchasing, developing, and acquiring
operations in the oil & gas industry. The financing of the project is being
coordinated by First Diversified Financial Services, Inc. of Houston, Texas.
The loan will be a two year term loan for $27,000,000 that includes
$21,000,000 for the acquisition and the remaining $6,000,000 for the costs of
the loan and drilling in the next 18 months. We plan to complete the
acquisition by early fourth quarter.
We plan to complete all filing for Arete during the third and fourth
quarter and thereafter begin the process for the listing on the OTC BB. "This
has been a long time coming and we have worked very hard to make this happen.
We had problems with the pipeline early on but it is performing very well for
now and we expect this acquisition of assets to provide us the ability to
continue to execute our plan presented in mid 2006," stated Charles Gamber CEO
of Arete Industries, Inc.
About the Company
Arete Industries, Inc. is a publicly traded holding company. The Company
is the operator of a gas gathering system and is in the process of acquiring
gas and gas properties in the southwest region of the United States.
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 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, Arete'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 its plans to meet its goals and other risks
inherent in their businesses that are detailed in their Securities and
Exchange Commission ("SEC") filings.
SOURCE Arete Industries, Inc.

Charles Gamber, CEO of Arete Industries, Inc., +1-303-652-3113,
ir@areteindustries.com