Colorado

Pennsylvanian Age Paradox Formation
The Paradox Basin is an oval-shaped structural depression that covers approximately 14,000 square miles within the Colorado Plateau in southwestern Colorado and southeastern Utah. The Colorado portion of the Paradox Basin covers approximately 5,600 square miles and is located in Delores, San Miguel, and western Montrose Counties. The basin is bounded on the north by the Uncompahgre uplift, on the east by the San Juan Mountains, and on the south by the San Juan Basin.

The U.S. Geological Survey (USGS) estimates that historical production from the Paradox Basin is more than 500 million barrels of oil and more than one trillion cubic feet of gas. Most of the oil and gas production occurs incarbonate reefs/algal mounds and organic-rich black shales of the Pennsylvanian age Paradox Formation.

Arkanova’s Grove East Prospect - Colorado
Arkanova has acquired a 100% working interest in 1,320 gross mineral acres in Delores County, Colorado with a royalty of 16.75%. If Arkanova acquires additional leaseholds currently under negotiation, the total combined acreage in this prospect area will be approximately 2,640 gross mineral acres.

The Grove East Prospect consists of an anticlinal structure and fault trap. The exploration targets include a series of fractured black shales of the Pennsylvanian age Paradox Formation with drilling depths of 8,000 to 9,500 feet. The target intervals, including a primary interval approximately 100 feet in thickness, were identified in an existing well located on the leasehold, which encountered gas shows during drilling. Arkanova may complete their bitcoin evolution review and re-enter the well at a later date.

Arkanova believes that the Grove East Prospect has the potential to support multiple vertical or horizontal wells.