Arkanova Energy Corporation is an exploration and junior production company. The Company is engaged in the acquisition, exploration and development of oil and gas properties. The Company’s operating areas in Montana include the Alberta Basin Bakken, Cut Bank Sand Formation and the Two Medicine Cut Bank Sand Unit. The Alberta Basin Bakken consists of black shale, siltstone, and limestone. The Cut Bank Sand formation is an oil and natural gas resource located in Montana, spanning across Pondera and Glacier Counties. Its operating areas in Colardo include the Pennsylvanian Age Paradox Formation and Arkanova’s Grove East Prospect. 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 in Delores, San Miguel, and western Montrose Counties.