Arkansas

Fayetteville Shale
The Fayetteville Shale is an unconventional natural gas resource located in northern Arkansas, which stretches from the Oklahoma border to the Mississippi River. The shale has similar characteristics to the Barnett Shale in Texas, the Caney Shale in Oklahoma and the Floyd Shale in Alabama.

The Fayetteville Shale reaches a maximum depth of approximately 10,000 feet; however, producing wells in the play have typically targeted depths between 1,500 and 6,800 feet. The thickness of the producing shale zones ranges from about 50 feet to more than 600 feet with an average of 200-300 feet.

The Fayetteville Shale is thermally mature with total organic carbon content ranges between 4% and 9.5%; gas contents between 60 and 220 standard cubic feet per ton; and gas-in-place is estimated between 58 and 65 billion cubic feet per section.

Arkanova’s Fayetteville Shale Prospect - Arkansas
Arkanova has acquired a 100% working interest in approximately 43,500 gross mineral acres in Phillips and Monroe Counties and has the option to acquire a 100% working interest in oil and gas leases on approximately 15,000 gross mineral acres in Desha County, Arkansas. The final acquisition of the Fayetteville play leases is expected to total over 50,000 gross mineral acres. Royalties on the leases range from 15% to 17.5%.

In late 2007, Arkanova drilled its first well, the DB Griffin 1-33, to a total depth of 7,732 feet to test the Fayetteville Shale and other potential targets. Core samples were taken and evaluated, and the well may be re-entered and deepened after the acquisition and interpretation of seismic data in the area.