Arcland Energy Corp (fka ACLY)

[ncpti]

Pilgrem Petroleum COO post on PGPM site update....indicates ACLY still on track........

PGPM CORPORATE UPDATE - JULY, 2011

Everything seems to still be on track with the ACLY Russian acquisition assuming I am being given accurate information. I have now personally assisted with my time and contacts towards this endeavor as it means a great deal of 3rd party equity value for PGPM. Unfortunately, I am unable to publicly disclose specifics due to legal and ethical responsibilities associated with ACLY being a fully reporting SEC regulated company.

PGPM is currently engaged in the selling of an asset in 2 stages. Closing documents should be completed by the end of July. 2nd stage of the sale is to potentially occur within 90 days of execution of the closing documents. Dependant on final 1st and 2nd stage sale price this has the potential to result in either partial or complete liability elimination for the Company.

Assuming no disruptions in cash flow, PGPM intends to remove as many cautionary symbols on OTCMarkets as possible as well as release the 2010 annual statement and the Q1 2011 financial statement within 30 days. This will be contingent primarily on our accounting firm BDS & Co., P.C.

PGPM signed an extension of the note due from ACLY at the beginning of May under the following basic terms: a) $2.4mm Cash still due (of the original $3mm APC Note) which will continue to accrue interest at the original rate set forth in the 2008 note, b) 557,783 shares of ACLY’s Preferred Series A stock convertible at 16 to 1 common and c) an extended maturity date of December 31, 2012. In addition, PGPM is negotiating other benefits from ACLY to potentially include an ACLY board position, a revenue sharing relationship on development of NW Texas leasehold, and immediate cash payments from interest and principal still due from the note extension.

Some companies have contacted PGPM to purchase/acquire the Company’s ACLY equity position. My thought is to wait until there is a substantial increase in ACLY share value in order to maximize this equity position. The ACLY equity position has the potential to be worth between $10mm and $40mm short term assuming the ACLY completion of an audit, Russian acquisition, etc. This equity position in ACLY will be 12 months restricted if ACLY remains pink or 6 months restricted if ACLY achieves a successful up board move. A dividend payment of these shares is also being considered to current PGPM shareholders although I would hate for some smaller shareholders to receive a paltry few shares of ACLY that are not worth converting with their broker.

In the short term (30 to 90 days) my plan for the company is as follows: a) maintain company solvency, b) completion of phase 1 asset sale c) completion of annual 2010 and financials Q1, 2011, d) removal of cautionary symbols on OTCMarkets, e) potential phase 2 of asset sale and f) payment of liabilities to include such items as transfer agent, public wire fees, accounting, etc.

In the long term (90-365 days) my plan for the company is potentially as follows: a) monetize PGPM’s 3rd party equity positions (this will ultimately be affected by overall ACLY share value as well as potential dividend payment), b) acquire oil assets for both deep test drilling as well as shallow marginal well rework with EOR (existing production acquisitions will of course be considered based on merit), c) assist in development of ACLY NWTexas leasehold, d) acquire PGPM outstanding shares either through direct purchase or share exchange and e) continue to provide services to 3rd parties.

Please be aware that the above plans approval is contingent on my superior’s approvals (preferred shareholders, majority common shareholder) that ultimately still retain control of the company.

Upcoming events should be disclosed via public wire upon completion. In the meantime, as always, please feel free to email me ([e-mail]) or call (214-764-3141) with your questions or concerns. Thank you.

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