DALLAS, Feb. 9, 2015 /PRNewswire/ -- The last several
months have been eventful in the oil markets as well as at Arkose
Energy Corp (OTC: RKOS). As mentioned in a previous correspondence
we acquired leases in the Brownwood
Texas area and have been in the process of maximizing
production on those properties.
Phase one of that process (repairs that are low cost "fixes")
has been completed and we are now producing nearly 40 barrels of
oil per day on the two main leases, Dead Horse and Glen Cove. The next phase will involve rework
rig time and we can continue to enhance production there.
We have entered an Agreement to obtain an additional 430 acres
with 45 wellbores just ten miles from the Dead Horse lease, in
Rising Star, Texas. The property
is producing ten barrels of oil per day now with only six wells in
operation. We are confident that our process of first fixing basic
issues at a low repair cost; then continuing to bring wells on that
need more extensive reworks (rig time etc.)--,- we can bring the
production on this lease back to the 50-60 barrel per day
range it once did. Then we can concentrate on further development
of all the properties.
It should be emphasized that we are a low cost producer of oil.
Our current wells are all shallow (less than 1200 feet), have low
lift costs, low repair and maintenance costs--- and we have a
critical mass of wells in a concentrated geographic region (50 mile
radius) allowing for efficient oversight by our field crew and
management.
In the oil pricing environment we find ourselves in, it is good
to be a low cost producer, and we anticipate that we will be able
to obtain assets (reserves and production) at low acquisition costs
as small companies look to find business combinations that make
sense for them--- we can buy properties with stock when possible
and grow production efficiently without a large increase in
overhead.
When Arkose purchased Texas Oil Investment leases (Dead Horse,
Glen Cove and three others we will
develop at a later time), one of the principals of TOI,
Ken Koepke joined our Board of
Directors. Ken has worked tirelessly in the field and investing his
own money in helping us grow our business. I am pleased to announce
Ken has been named President of Arkose Energy Corp. Ken has been a
successful entrepreneur and businessman his whole career and as a
shareholder I am very happy to have his leadership. I am sure you
will be hearing from him in the near future and you will feel the
same way I do.
We continue to work hard to keep RKOS moving forward, you should
be seeing more information about the company in the press in the
coming weeks. As always, if I can be of assistance, please reach
out to me.
Thank you.
Paul Henley
CEO Arkose Energy Corp.
arkoseenergy.com
+1-972-687-9110
phenley@arkoseenergy.com
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SOURCE Arkose Energy Corp