SOURCE: Arkanova Energy Corporation

Arkanova Energy Corporation

March 17, 2010 07:00 ET

Arkanova Energy Corporation Receives Completion of Schlumberger's Geological Mapping and Infield Location on Two Medicine Cut Bank Sand Unit

HOUSTON, TX--(Marketwire - March 17, 2010) -  Arkanova Energy Corporation (OTCBB: AKVA) received from Schlumberger's Data and Consulting Services (Houston, Texas) on March 5, 2010 the completed data for the geological mapping and infield drilling location (Phase 3) at Provident Energy's Two Medicine Cut Bank Sand Unit (TMCBSU). The objective of this phase was to provide updated structural maps of both the Upper and Lower Cut Bank sands, gross and net sand thickness maps of Upper and Lower Cut Bank sands, porosity maps of Upper and Lower Cut Bank sands, 3-D Petrel model, digitize well logs, and recommended a TMCBSU infield drilling location.

The geological phase included an update of the 1972 TMCBSU field maps and provided reliable structure, isopach and pay maps for well planning; as well as geological model in Petrel for reservoir characterization and field development planning. Schlumberger was able to acquire and digitize logs from available wells with raster logs (278 total logs) in the TMCBSU and immediate offset wells, construct a geological model for TMCBSU field project, and correlate and map Upper and Lower Cut Bank sands.

The TMCBSU currently has 22 active producers and approximately 30 well bores set for reactivation and recompletion. Provident Energy has increased production by roughly 32% from 2008 to 2009. As a result of Schlumberger's phase studies of the TMCBSU, Provident Energy is in the process of applying for authorization to have its first drilling permit for 2010 approved by the necessary agencies. The company anticipates the program to spud its first horizontal infield Lower Cut Bank sand well, Tribal - Max 1 - 2817, in June 2010 and further anticipates that the well will be the first horizontal well drilled with the use of Schlumberger's PeriScope Technology in the Lower Cut Bank sand. The Tribal - Max 1 - 2817 will initially be drilled vertically to an approximate total depth of 6,000 feet to test the prospective Exshaw Shale (Alberta Basin Bakken), Spanish/Three Forks and Lodgepole formations. Following the vertical test and review of the science obtained, the Tribal - Max 1 - 2817 is expected to kick out, drill and complete a horizontal leg of approximately 2,000 to 3,000 feet into the Lower Cut Bank sand.

In review of the data provided by Schlumberger, Pierre Mulacek, the company's CEO, stated, "We had been waiting for this data to assist us in our development, not only the infield drilling, but also the correct recompletion of the current active and inactive wells. We are hopeful that our expectation of the lower targets will be validated with the Tribal - Max 1 - 2817."

Provident Energy was acquired by a subsidiary of Arkanova Energy Corporation in October 2008.

Management is currently assessing the next phase for reactivation and development.

About Arkanova Energy Corporation
Arkanova Energy Corporation 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 press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the company such as the statement that: (i) the infield drilling program is anticipated to spud its first horizontal infield sand well in June 2010; and (ii) the company expects to test prospective Alberta Basis Bakken Spanish/Three Forks and Lodgepole formations. 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, including: (i) delays with respect to the drill program; (ii) adverse market conditions; (iii) a decrease in demand for and price of oil; (iv) general uncertainties with respect to oil and gas exploration in general; and (v) the inability of the company to raise the financing necessary to carry out the exploration program. Actual results and future events could differ materially from those anticipated in such information. Except as required by law, the company does not intend to update such forward-looking information. The contents of this press release 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.

Contact Information

  • Contacts:
    Arkanova Energy Corporation
    2441 High Timbers Drive, Suite 120
    The Woodlands, Texas, 77380
    Tel: (281) 298-9555
    Fax: (281) 298-9558