Arkanova Energy Corp. (OTC: AKVA) is an exploration and junior production company engaged in the acquisition, exploration, and development of oil and gas properties. Through the use of science driven data and extensive industry experience, the company is currently leveraging working interests in both Montana and Colorado.
The company’s primary leasehold lies in the Cut Bank Sand formation of Montana. Spanning across Pondera and Glacier Counties, the oil and natural gas resource features oil bearing sands ranging in thickness from 0 to 52 feet. The Two Medicine Cut Bank Sand Unit (TMCBSU) is an extension of this leasehold acquired by Arkanova in 2008. This property contains 34 active wells, in addition to a collection of well bores set for completion and activation at a later date. With an estimated 21 million tank barrels of oil in place throughout the area, Arkanova is in a strong position to increase production as market value rises in the future.
In September 2014, Arkanova announced that it had received a well permit from the EPA, which enabled the installation of an injection plant and pipeline on the company’s TMCBSU lease acreage. This installation will allow the company to reactivate waterflood operations as necessary, effectively increasing production totals based on market demand.
In addition to TMCBSU, the company’s Colorado leasehold has shown great promise for future production. The acreage features a primary interval approximately 100 feet thick that’s currently accessible through an existing well. According to the company’s test results, the prospect has the potential to support multiple vertical or horizontal wells, giving Arkanova the means for potentially significant boosts to production levels as oil prices begin to rebound. According to the U.S. Geological Survey, the Paradox Basin, of which the company’s working interest is a part, likely holds more than 500 million barrels of oil and more than one trillion cubic feet of gas.
As oil prices begin to rise following a drop in inventory, Arkanova is in a strong position to leverage its existing reserves to promote strong returns in the years to come. Look for the company to rely on experience, science and proven growth strategies in order to continuously balance its risk/reward portfolio and grow its market share moving forward.
For more information, visit www.arkanovaenergy.com
