VANCOUVER, March 2 /PRNewswire-FirstCall/ -- ARKANOVA ENERGY CORPORATION (OTC BB: AKVA) announces that it has closed the Merger Agreement with Arkanova Energy, Inc. announced on October 23, 2006. In connection with the closing of the merger, the Company also closed an equity financing of $5,050,000. As a result of the closing of the merger, the financing and the other transactions contemplated by the Merger Agreement, the Company's issued and outstanding share capital is now 30,932,500 shares. The securities issued in the merger and the financing have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. ------------------------------------------------------------------------- This news release may include forward-looking statements that involve risks and uncertainties which could cause actual results to differ materially from the Company's expectations and estimates and from the forward looking statements contained herein. The statements expressed reflect the Company's current expectations regarding the future results of operations, performance and projected achievements. Forward-looking statements are often, but not always, identified by the use of words such as "seek," "anticipate," "plan," "continue," "estimate," "expect," "may," "will," "project," "potential," "targeting," "intend," "could," "might," "should," "believe" and similar expressions. By their nature, forward-looking statements involve assumptions and known and unknown risks and uncertainties that may cause actual future results to differ materially from those contemplated. These risks include such things as our ability to acquire new projects at a cost commensurate with the Company's financial activities, the volatility of oil and gas prices, commodity supply and demand, fluctuations in currency and interest rates, ultimate recoverability of reserves, timing and costs of drilling activities and pipeline construction, new regulations and legislation and availability of capital. Please refer to the Company's filings with the Securities and Exchange Commission ("SEC") for more detail as to the nature of these risks and uncertainties. Although Paradigm believes that the expectations represented by these forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. DATASOURCE: Arkanova Energy Corporation CONTACT: For further details of the terms of merger and the financing, please refer to our filings with the United States Securities and Exchange Commission at http://www.sec.gov/.

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