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