Aroway Energy Inc ARWJF

RE: RE: clarifications ... from our CEO ...

[Henmystirsir]

Companies are always allowed to depreciate assets that they have. It is standard business practice and most assets have limits as to the amount that can be used from about 3 % to maybe 30% per year with everything from desks or vehicles to computers or oil pumping equipment. They are doing nothing different than every other company does. Depreciation also reduces the taxes payable on profits. In the financials ARW I think has about $15 million from old exploration expenses that they will be able to use against future profits so that is another bonus that ARW shouldn't have to pay the tax man for a few more quarters, I like that. Depletion is also standard deduction since the deposit is really being reduced also. One thing is that I dont think we know exactly how much oil is under all those 101 sections so once they have more wells drilled and producing then maybe an actually estimate can be made. Heck they might have 500million worth of oil, I dont know and really nobody can answer that one. The stock based compensation was just paper written so it didn't cost the treasury anything either. Its all good in my opinion.