AUSTIN, Texas, Dec. 10, 2012 /PRNewswire/ --
Dear Shareholders,
For over the last four years, since the acquisition of Provident
Energy of Montana, LLC in October
of 2008, the company has been focused on rebuilding its
infrastructure, re-commissioning wells and exploring deeper targets
within the Two Medicine Cut Bank Sand Unit. The company
currently has 31 producing wells, 22 of which were brought online
over the last three and a half years resulting in increased lease
production. Over the past year, the primary focus has been on
successfully producing the horizontal well Tribal-Max 1-2817.
Tribal-Max 1-2817, the first successful horizontal well drilled
in the Cut Bank Sand Formation, was drilled in September 2010 and completed with a six stage
perf and frac in August 2011. The
company has faced ongoing challenges in producing the well, but
with continued efforts the company recently landed the pump in the
horizontal section of the wellbore and anticipates confirmed
production volumes in the near future. Along with all the
challenges, this exploration well offered an abundant amount of
information and knowledge which the company believes will assist in
the development of a new drilling and completion program for the
next well.
The company expects sustained growth in overall production with
continued efforts to maximize on the expected potential of the
horizontal Tribal-Max 1-2817, the reactivation of more wells and
anticipated future drilling.
"With the good T.O.C. (Total Organic Carbon), high trip gas
volumes and slip faulting found in the cores gathered from the
vertical test of the Tribal-Max 1-2817 within the Alberta Basin Bakken structures, we believe we
have one of the best prospects in the area."
The company anticipates highlighting data in relation to the
Alberta Basin Bakken and Cut Bank
Sand structures at the NAPE Expo February
7th and 8th in Houston,
Texas. The company is seeking partnership opportunities to
drill a horizontal bakken well and or additional horizontal wells
in the Cut Bank Sand Formation.
Sincerely,
Pierre Mulacek
President / CEO
About Arkanova Energy Corporation
Arkanova Energy is an exploration and junior production company
engaged in the acquisition, exploration, and development of oil and
gas properties. The company has secured working interest in three
key North American areas in Montana, Arkansas and Colorado. The company relies on experience,
science and proven growth strategies in order to continuously
balance a risk/reward portfolio.
For more information, please visit www.arkanovaenergy.com
This corporate update contains projections and
forward-looking information that involve various risks and
uncertainties regarding future events. Such forward-looking
information includes statements based on current expectations
involving a number of risks and uncertainties and such
forward-looking statements are not guarantees of future performance
of the company, and include, without limitation, statements that:
(i) the company anticipates confirmed production volumes in the
near future; (ii) the belief that information from exploration
activities may assist in the development of a new drilling and
completion program for the company's next well; (iii) the
expectation for sustained growth in overall production, the
reactivation of more wells and anticipated future drilling; (iv)
the belief that the company has one of the best prospects in the
area; and (v) the anticipation that the company will highlight data
in relation to the Alberta Basin
Bakken and Cut Bank Sand structures at the NAPE Expo. There are
numerous risks and uncertainties that could cause actual results
and the Company's plans and objectives to differ materially from
those expressed in the forward-looking information in this news
release, including without limitation, the following risks and
uncertainties: (i) delays in pursuing further drilling on its
properties; (ii) inability to raise additional financings necessary
to continue exploration efforts; (iii) general uncertainties and
risks with respect to oil and gas exploration in general; (iv)
decreased oil and gas prices; and (v) continued depressed market
and economic conditions. Actual results and future events could
differ materially from those anticipated in such information. These
and all subsequent written and oral forward-looking information are
based on estimates and opinions of management on the dates they are
made and are expressly qualified in their entirety by this notice.
Except as required by law, the company does not intend to update
these forward-looking statements. The contents of this
corporate update should be considered in conjunction with the risk
factors and cautionary statements contained in the company's
periodic filings with the Securities and Exchange Commission
available at www.sec.gov.
SOURCE Arkanova Energy Corporation