Document:

Arkanova Energy Corporation: Exhibit 10.41 - Filed by newsfilecorp.com

THIS AGREEMENT RELATES TO AN OFFERING OF SECURITIES IN AN
OFFSHORE TRANSACTION TO PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED IN
REGULATION S UNDER THE 1933 ACT) PURSUANT TO REGULATION S UNDER THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”). NONE OF THE
SECURITIES TO WHICH THIS AGREEMENT RELATES HAVE BEEN REGISTERED UNDER THE 1933
ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, NONE MAY BE
OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OR TO U.S. PERSONS
(AS DEFINED HEREIN EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S
UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY
IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS. IN ADDITION, HEDGING
TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN ACCORDANCE
WITH THE 1933 ACT.

AMENDED & RESTATED PLEDGE AGREEMENT

     THIS AMENDED & RESTATED
PLEDGE AGREEMENT (this “Agreement”) is made and entered into as of,
but not necessarily on, the 6th day of February, 2013, by and between
Arkanova Acquisition Corporation, a Nevada corporation,
(“Pledgor”), and Aton Select Funds Limited (“Secured
Party”).

Background

     A. On even date herewith, Pledgor
and the Secured Party entered into an amended & restated note purchase
agreement (the “NPA”)”) pursuant to which Pledgor issued to the Secured
Party an amended & restated secured promissory note (the “Note”) and
Pledgor agreed to pledge interests of its wholly owned subsidiary, Provident
Energy of Montana, LLC, a Montana limited liability company
(“Provident”), to secure payment of the indebtedness evidenced by the
Note; and

     B. The parties desire to set
forth in writing their agreement as to the terms and conditions of the
administration and disposition of the pledge of the membership interests of
Provident and certain other matters as set forth herein;

Terms and Conditions

     In consideration of the mutual
benefits to be derived from the covenants and agreements herein contained and
other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto hereby agree as follows:

     1. Pledge. As collateral
security for the payment and performance of the Obligations (as defined in
Section 2 hereof) by Pledgor, Pledgor hereby pledges to the Secured Party, and
grants, transfers, assigns and hypothecates to the Secured Party a continuing
security interest in, the following property owned by Pledgor (the “Pledged
Collateral”):

     (a)
Pledged Interests. All of the issued and outstanding membership interests
in Provident (the “Pledged Interests”).

     (b)
Dividends and Proceeds. Except as provided in Section 10(b) hereof, all
dividends, cash, products, proceeds, securities, instruments and other property
from time to time received, receivable or otherwise distributed in respect of or
in exchange for any or all of the Pledged Interests, including, but not limited
to, all distributions or payments in partial or complete liquidation or
redemption of the Pledged Interests.

     (c)
Additional Interests. All additional membership interests in Provident
from time to time hereafter acquired by Pledgor arising from the Pledged
Interests as a result of any reclassification, readjustment, split, dividend, or
reorganization and the certificates representing such additional Interests, and
all dividends, cash, products, proceeds, securities, instruments and other
property from time to time received, receivable or otherwise distributed in
respect of or in exchange for any or all of such Interests.

     2. Obligations Secured.
This Agreement secures the payment and performance of (i) all obligations of
Pledgor to the Secured Party now or hereafter existing under the Note whether
for indebtedness (principal and interest), fees, damages, expenses or otherwise,
and whether evidenced by any instrument, agreement or book account, (ii) all
obligations of Pledgor to the Secured Party now or hereafter existing under the
NPA, and (iii) all obligations of Pledgor to the Secured Party now or hereafter
existing under this Agreement, regardless of whether the amounts referred to in
clause (i), (ii) or (iii) above are due or to become due, direct or indirect,
primary or secondary, joint, several, or joint and several, or fixed or
contingent obligations of Pledgor. All of such obligations are collectively
referred to herein as the “Obligations".

     3. Delivery of Pledged
Collateral. (a) Upon the execution of this Agreement, Pledgor shall deliver
and deposit with the Secured Party the certificate or certificates or other
instruments evidencing the Pledged Interests, along with such assignments,
financing statements, endorsements, and transfer powers duly executed by Pledgor
in blank as will enable the Secured Party to register the Pledged Interests in
the Secured Party's name or in the name of the Secured Party's nominee in the
appropriate record books of Provident in the Event of Default (as such term is
herein after defined).

     4. Return of Pledged
Collateral. Secured Party shall return the Pledged Collateral or the balance
thereof, if any, in its possession to Pledgor upon payment in full of the
Obligations.

     5. Further Assurances and
Documentation. Pledgor agrees that at any time and from time to time, at the
expense of Pledgor, Pledgor will promptly execute and deliver all further
instruments and documents, and take all further action that the Secured Party
may reasonably request, in order to perfect and protect any security interest
granted or purported to be granted hereby or to enable the Secured Party to
exercise and enforce the Secured Party's rights and remedies hereunder with
respect to any Pledged Collateral.

     6. Responsibility for Pledged
Collateral. Secured Party shall exercise reasonable care in the custody and
preservation of the Pledged Collateral. The Secured Party shall be deemed to
have exercised reasonable care in the custody and preservation of the Pledged
Collateral in the Secured Party's possession if the Pledged Collateral is
accorded treatment substantially equal to that which the Secured Party accords
the Secured Party's own property of similar nature. The Secured Party shall be
under no duty or responsibility to (i) fix or preserve the rights of Pledgor
with respect to the Pledged Collateral against prior parties, (ii) fix or
preserve rights against any parties to any instrument or chattel paper which
may be a part of the Pledged Collateral, (iii) sell or
otherwise realize upon the Pledged Collateral, or (iv) seek payment from any
particular source. Without limiting the generality of the foregoing, the Secured
Party shall not have any responsibility or obligation for any action in
connection with any conversion, call, exchange, maturity, redemption,
retirement, tender or any other event relating to any of the Pledged Collateral
whether or not the Secured Party has or is deemed to have knowledge of such
matters. The Secured Party shall never be liable for the Secured Party's failure
to use diligence to collect any amount payable with respect to the Pledged
Collateral, but shall be liable only to account to Pledgor for what the Secured
Party may actually collect or receive thereon. After payment of part of the
Obligations, the Secured Party may, at the Secured Party's option, retain all or
any portion of the Pledged Collateral as security for any remaining Obligations
and retain this Agreement as evidence of such security.

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     7. Representations and
Warranties. Pledgor represents and warrants to Secured Party as follows:

     (a)
Authorization. The execution, delivery and performance of this Agreement
are within Pledgor's powers and are not in contravention of any applicable
law.

     (b)
Absence of Conflicts. Pledgor is not obligated under any contract or
agreement, which materially or adversely affects Pledgor's properties or assets,
or Pledgor's financial condition, and neither the execution nor delivery of this
Agreement nor the consummation of any transaction contemplated hereby will
conflict with or result in any breach of the terms, conditions, or provisions
of, or constitute a default under any agreement or instrument relative thereto
to which Pledgor is subject.

     (c)
Authorized Interests. The Pledged Interests have been duly authorized and
validly issued by Provident and are fully paid and non-assessable.

     (d)
Unencumbered Title to Pledged Collateral. Pledgor is the legal and
beneficial owner of the Pledged Collateral owned by Pledgor, free and clear of
any lien, security interest, option or other charge or encumbrance whatsoever
except for the security interest created by this Agreement. Until such time as
the Obligations have been paid in full, Pledgor, at Pledgor's sole expense, will
keep the Pledged Collateral free from other liens, security interests,
encumbrances or claims; and Pledgor will defend the Pledged Collateral against
the claims and demands of all persons claiming the Pledged Collateral or any
part thereof or interest therein.

     (e)
Perfected Security Interest. The pledge of the Pledged Interests and the
delivery thereof to the Secured Party pursuant to this Agreement creates a valid
and perfected first priority security interest in the Pledged Collateral,
securing the payment of the Obligations.

     (f) No
Approval Required. No authorization, approval, or other action by, and no
notice to or filing with, any governmental authority or regulatory body is
required either (i) for the pledge by Pledgor of the Pledged Collateral pursuant
to this Agreement or for the execution, delivery or performance of the Agreement
by Pledgor or (ii) for the exercise by the Secured Party of the rights provided
for in this Agreement or the remedies in respect of the Pledged Collateral
pursuant to this Agreement (except as may be required in connection with such
disposition by laws affecting the offering and sale of securities
generally).

     (g)
Accurate Information. All information contained in statements furnished
or to be furnished to the Secured Party by or on behalf of Pledgor in connection
with the Pledged Collateral or the Obligations is complete and accurate in all
material respects.

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     8. Affirmative Covenants of
Pledgor. For and during such period of time as any portion of the
Obligations shall remain unpaid or Pledgor shall have any commitment or
obligation hereunder, Pledgor shall comply with each of the following provisions
of this Section, unless the Secured Party shall otherwise consent in
writing:

     (a)
Performance of Obligations. Pledgor will duly and punctually pay and
perform each of the Obligations to the extent such party is liable therefor,
including, without limitation, its obligations under this Agreement and each of
the other documents securing the Obligations, as the same may at any time be
amended or modified.

     (b)
Preservation of Existence and Franchises and Conduct of Business. Pledgor
will do , and will cause Provident to do, or cause to be done, all things
necessary to preserve and keep in full force and effect its company existence,
rights, leases (including oil and gas leases), agreements, and all other
licenses or rights necessary to comply with all laws, regulations, rules,
statutes, or other provisions applicable to the respective entity in the
operation of their respective business, noncompliance with which would
materially and adversely affect either the business or credit of Provident.

     (c)
Confidential Information. Pledgor will, and will cause its subsidiaries
to, furnish to the Secured Party any information which the Secured Party may
from time to time reasonably request concerning any covenant, provision or
condition of the Agreement or any matter in connection with the business and
operations of Pledgor and its subsidiaries. Secured Party agrees that, until the
occurrence of an Event of Default, it will take all reasonable steps to keep
confidential any proprietary information given to it by Pledgor, provided,
however, that this restriction shall not apply to information which (i) has at
the time in question entered the public domain through no default of this
provision, or (ii) is required to be disclosed by law or by any order, rule or
regulation (whether valid or invalid) of any court or governmental agency, or
authority.

     (d)
Notice of Material Events and Defense of Action. Pledgor will promptly
notify Secured Party of: (i) any material adverse change in Pledgor’s or any
subsidiary’s financial condition, (ii) the occurrence of any Event of Default,
(iii) the acceleration of the maturity of any debt owed by Pledgor or subsidiary
or of any default by Pledgor or any subsidiary under any indenture, mortgage,
agreement, contract or other instrument to which Pledgor or any subsidiary is a
party or by which any of them or any of the properties is bound; (iv) any
material adverse claim (or any claim of $25,000 or more) asserted against
Pledgor or any subsidiary or with respect to Pledgor’s or any subsidiary’s
properties, or (v) the filing of any suit or proceeding against Pledgor or any
subsidiary. Upon the occurrence of any of the foregoing, Pledgor will take, or
cause to be taken, all reasonably necessary or appropriate steps to remedy
promptly any such material adverse change or default, to protect against any
such adverse claim, to appear in and defend any such suit or proceeding, and to
resolve all controversies on account of any of the foregoing at Pledgor’s
expense.

     (e)
Reporting Requirements. Within ten (10) days of the end of each calendar
quarter, Pledgor shall furnish Secured Party with a sworn statement of Pledgor,
stating that Pledgor has no knowledge that an Event of Default has occurred, or
such event has occurred and is continuing as of the date of such statement and a
statement as to the nature thereof and the action which Pledgor proposes to take
with respect thereto.

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     9. Expenses. Pledgor will
upon demand pay to Secured Party the amount of any and all reasonable expenses,
including the reasonable fees and expenses of the Secured Party's counsel and of
any experts and agents, which the Secured Party may incur after the occurrence
of an Event of Default (as hereinafter defined) in connection with (i) the
custody or preservation of, or the sale of, collection from, or other
realization upon, any of the Pledged Collateral, or (ii) the exercise or
enforcement of any of the rights of the Secured Party hereunder.

     10. Voting Rights and
Dividends. So long as no Event of Default or event that, with the giving of
notice or the lapse of time, or both, would become an Event of Default shall
have occurred and be continuing:

     (a)
Pledgor shall be entitled to exercise any and all voting and other consensual
rights pertaining to the Pledged Collateral or any part thereof for any purpose
not inconsistent with the terms of this Agreement; provided, however, Pledgor
may not exercise such voting rights so as to impair the value of the Pledged
Collateral or to dilute the Secured Party's ownership percentage represented by
the Pledged Collateral and Secured Party shall not be required to exercise
preemptive rights.

     (b)
Pledgor shall be entitled to receive and retain any and all dividends and
interest paid in respect of the Pledged Collateral; provided, however, that any
and all (A) dividends and interest paid or payable other than cash in respect
of, and instruments and other property received, receivable or otherwise
distributed in respect of, or in exchange for, any Pledged Collateral; (B)
dividends and other distributions paid or payable in cash in respect of any
Pledged Collateral in connection with a partial or total liquidation or
dissolution or in connection with a reduction of capital, capital surplus or
paid-in-surplus, and (C) cash paid, payable or otherwise distributed in
redemption of, or in exchange for, any Pledged Collateral, shall be, and shall
be forthwith delivered to the Secured Party to hold as, Pledged Collateral and
shall, if received by Pledgor, be received in trust for the benefit of the
Secured Party, be segregated from the other property or funds of Pledgor, and be
forthwith delivered to Secured Party as Pledged Collateral in the same form as
so received (with any necessary endorsements); and provided further, that
Pledgor shall promptly notify the Secured Party of the occurrence of any of the
above matters upon the occurrence thereof.

     (c)
Secured Party shall execute and deliver (or cause to be executed and delivered)
to Pledgor all such proxies and other instruments as Pledgor may reasonably
request for the purpose of enabling Pledgor to exercise the voting and other
rights which Pledgor is entitled to exercise pursuant to paragraph (i) above and
to receive the dividends or interest payments which Pledgor is authorized to
receive and retain pursuant to Subsection (b) above.

     11. Events of Default. The
occurrence of any one or more of the following events shall constitute an Event
of Default hereunder:

     (a)
Default Under Obligations. Pledgor shall be in default under the terms of
the Obligations, including the Note, the NPA and this Agreement.

     (b)
Defaults Under Other Instruments. Pledgor shall be in default under the
terms of any other documents and instruments relating to the Aggregate Offering,
as such term is defined in the NPA.

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     (c)
Insolvency. Pledgor or any subsidiary shall admit in writing Pledgor's or
subsidiary’s inability to pay its debts, or shall make a general assignment of
Pledgor's or any subsidiary’s assets or property rights for the benefit of
Pledgor's or any subsidiary’s creditors; or any proceeding shall be instituted
by or against Pledgor or any subsidiary seeking to adjudicate Pledgor or any
subsidiary as a bankrupt or insolvent, or seeking reorganization, arrangement,
adjustment or composition of Pledgor or any subsidiary or Pledgor's or any
subsidiary’s debts under any law relating to bankruptcy, insolvency or
reorganization or release of debtors, or seeking appointment of a receiver,
custodian, trustee, or other similar official for Pledgor or any subsidiary or
for any substantial part of the property of Pledgor or any subsidiary and in the
case of any such proceeding instituted against Pledgor or any subsidiary shall
remain undismissed for a period of ninety (90) days.

     (d)
Failure to Perform Obligations. Pledgor shall fail to perform any of
Pledgor’s covenants or obligations set forth in this Agreement.

     (e)
Falsity of Representation. Any warranty, representation or statement made
or furnished to Secured Party by Pledgor pursuant to this Agreement shall prove
to have been false in any material respect when made or furnished.

     (f)
Levy Against Collateral. The levy against the Pledged Collateral, or any
part thereof, of any execution, attachment, sequestration or other writ.

     12. Remedies Upon Default.

     (a)
Remedies. Upon the occurrence of an Event of Default, and in addition to
any and all other rights and remedies which Secured Party may then have
hereunder, or under the Texas Business and Commerce Code or any comparable
uniform commercial code applicable to Pledgor (the “Code”), or otherwise,
Secured Party may at Secured Party's option (i) declare the entire unpaid
balance of principal of, and all accrued interest on, the Obligations
immediately due and payable without demand, presentment, notice of default,
notice of intent to accelerate or notice of acceleration of maturity, all of
which are hereby expressly waived; (ii) notify any person obligated on any of
the Pledged Collateral of the security interest of Secured Party therein and
request such person to make payment directly to the Secured Party, (iii) demand,
sue for, collect or otherwise reduce Secured Party's claims to judgment,
foreclose or otherwise enforce the Secured Party's security interest through
judicial procedure or make any settlement or compromise Secured Party deems
desirable with respect to any of the Pledged Collateral; (iv) after
notification, expressly provided for herein, if any, sell or otherwise dispose
of, at the office of Secured Party, or elsewhere, as chosen by Secured Party,
all or any part of the Pledged Collateral, and any such sale or other
disposition may be as a unit or in parcels, by public or private proceedings,
and by way of one or more contracts (it being agreed that the sale of any part
of the Pledged Collateral shall not exhaust the power of sale granted hereunder,
but sales may be made from time to time until all of the Pledged Collateral has
been sold or until the Obligations have been paid in full) and at such sale it
shall not be necessary to exhibit the Pledged Collateral; (v) at Secured Party's
discretion, retain the Pledged Collateral in satisfaction of the Obligations
whenever the circumstances are such that Secured Party is entitled to do so
under the Code; (vi) apply by appropriate judicial proceedings for appointment
of a receiver for the Pledged Collateral, or any part thereof; (vii) purchase
the Pledged Collateral at any public sale; (viii) purchase the Pledged
Collateral at any private sale; and/or (ix) exercise the rights set forth in
Section 12(b) hereof. The foregoing remedies shall be cumulative and except for
the provisions of Section 12(a)(v) above without
prejudice to the Secured Party's right to recover any deficiency including
reasonable attorneys' fees and costs permitted by this Agreement.

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     (b) Sale of Pledged Collateral. Secured Party is authorized, at any sale of
the Pledged Collateral, if Secured Party deems it advisable, to restrict the
prospective bidders or purchasers to those persons who will represent and agree
that they are purchasing for their own account, for investment, and not with a
view to distribution or sale of any of the Pledged Collateral. Upon any such
sale, Secured Party shall have the right to deliver, assign, and transfer to the
purchaser thereof the Pledged Collateral so sold. Each purchaser at any such
sale shall hold the property sold absolutely, free from any claim or right of
whatsoever kind. Secured Party shall give Pledgor ten (10) days’ written notice
of Secured Party’s intention to make any such public or private sales or sale at
broker’s board or on a securities exchange. Such notice, in case of sale at
broker’s board or a securities exchange, shall state the board or exchange at
which such sale is to be made and the day on which the Pledged Collateral, or
that portion thereof so being sold, will first be offered to sale at such board
or exchange. At any such sale, the Pledged Collateral may be sold in one lot as
an entirety or in separate parcels, as the Secured Party may determine. Secured
Party shall not be obligated to make any such sale pursuant to any such notice.
Secured Party may, without notice or publication, adjourn any public or private
sale or cause the same to be adjourned from time to time by announcement at the
time and place fixed for the sale, and such sale may be made at any time or
place to which the same may be so adjourned. In case of any sale of all or any
part of the Pledged Collateral on credit or for future delivery, the Pledged
Collateral so sold may be retained by the Secured Party until the selling price
is paid by the purchaser thereof, but the Secured Party shall not incur any
liability in case of the failure of such purchaser to take up and pay such
selling price, and such Pledged Collateral may again be sold upon like notice.
Secured Party may also, at Secured Party's discretion, proceed by a suit or
suits at law, or in equity to foreclose the pledge and sell the Pledged
Collateral, or any portion thereof, under a judgment or decree of a court or
courts of competent jurisdiction. If any consent, approval or authorization of
any state, municipal or other governmental department, agency or authority
should be necessary to effectuate any sale or other disposition of the Pledged
Collateral, or any part thereof, Pledgor will execute all such applications and
other instruments as may be required in connection with securing any such
consent, approval or authorization, and will otherwise use its best efforts to
secure the same.

     (c)
Notification. Reasonable notification of the time and place of any public
sale of the Pledged Collateral, or any reasonable notification of the time after
which any private sale or other intended disposition of the Pledged Collateral
is to be made, shall be sent to Pledgor and to any other person entitled under
the Code to notice; provided, however, that if the Pledged Collateral threatens
to decline quickly in value, Secured Party may sell or otherwise dispose of the
Pledged Collateral without notification, advertisement or other notice of any
kind. It is agreed that notice sent or given not less than ten (10) calendar
days prior to the taking of the action to which the notice relates is reasonable
notification and notice for the purpose of this Agreement. Notice shall be
deemed to be sent when it is deposited in the United States Mail, return receipt
requested, bearing the proper postage and addressed to Pledgor and any other
person entitled to receive notice, at their last known address according to the
records of the Secured Party.

     (d)
Application of Proceeds. Upon the occurrence of an Event of Default or
maturity of any instrument evidencing the Obligations or any part thereof,
whether such maturity be by such terms of such instruments or through the
exercise of any power of acceleration, Secured Party is authorized and empowered
to apply any and all funds realized from the sale of the Pledged Collateral not
previously credited against the Obligations first toward the payment of the costs, charges and expenses, if any,
incurred in the collection of such funds hereunder, and then toward the payment
of the Obligations, and shall pay any balance remaining to Pledgor in accordance
with the written instructions executed by Pledgor or as prescribed by the
Code.

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     (e)
Deficiency. In the event that the proceeds of any sale, collection or
realization upon the Pledged Collateral by Secured Party are insufficient to pay
all amounts to which Secured Party is legally entitled, Pledgor shall be liable
for the deficiency, together with interest thereon at such rate as shall be
fixed by applicable law, together with the costs of collection and the
reasonable fees of any attorneys employed by Secured Party to collect such
deficiency.

     13. Secured Party Appointed
Attorney-in-Fact. Pledgor hereby irrevocably appoints Secured Party as
Pledgor's attorney-in-fact, with full authority in the place and stead of
Pledgor and in the name of Pledgor or otherwise, from time to time in the
Secured Party's discretion after the occurrence of an Event of Default to take
any action and to execute any instrument which the Secured Party may deem
necessary or advisable to accomplish the purpose of this Agreement, including,
without limitation, (i) the right and power to execute and deliver any and all
powers and other instruments, documents, certificates and agreements necessary
or appropriate to transfer ownership of the Pledged Collateral, and (ii) the
right and power to receive, endorse and collect all checks and other instruments
made payable to Pledgor representing any dividend, interest payment or other
distribution in respect of the Pledged Collateral or any part thereof and to
give full acquittance for the same. The foregoing appointment of the Secured
Party as Pledgor's attorney-in-fact is irrevocable and is coupled with an
interest.

     14. Certain Rights Before and After
a Default.

     (a)
Secured Party May Perform. If Pledgor fails to perform any agreement
contained herein, the Secured Party may perform, or cause performance of, such
agreement, and the expenses of the Secured Party incurred in connection
therewith shall be payable by Pledgor pursuant to the provisions of Section 9
hereof.

     (b)
Notification of Issuer. Secured Party shall have the right to notify the
issuer of the Pledged Collateral that the Pledged Collateral has been
pledged.

     15. Cumulative Rights and
Remedies. All rights and remedies of Secured Party hereunder are cumulative
of each other and of every other right or remedy which Secured Party may
otherwise have at law or in equity or under any other contract or other writing
for the enforcement of the security interest herein or the collection of the
Obligations, and the exercise by Secured Party of one or more rights or remedies
shall not prejudice or impair the concurrent or subsequent exercise of other
rights or remedies. Secured Party shall not be required to first endeavor to
collect from Pledgor or any other party obligated for the Obligations or to
proceed against or exhaust other collateral or security for the Obligations
hereby secured before pursuing any of Secured Party’s rights pursuant to this
Agreement against Pledgor. Should Pledgor have theretofore executed or hereafter
execute any other security agreement in favor of Secured Party in which a
security interest is created as security for the debts of Pledgor or another or
others, in respect of which Pledgor may not be personally liable, the security
interest therein created and all other rights, powers and privileges vested in
Secured Party by the terms thereof shall exist concurrently with the security
interest created herein, and, in addition, all property in which Secured Party
holds a security interest under any such other security agreement shall also be
part of the Pledged Collateral hereunder, and all or any part of the proceeds of
the sale or other disposition of such property may, in the discretion of Secured
Party, be applied by it in accordance with the terms hereof, and of such other
security agreement, or agreements, or any of them.

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     16. Surrender of
Collateral. Secured Party may surrender, release, exchange or alter any
collateral or security for the Obligations without affecting the liability of
Pledgor under this Agreement, and this Agreement shall continue effective
notwithstanding any legal disability of Pledgor to incur any indebtedness or
obligation incurred to Secured Party.

     17. Effect of Other
Agreements. This Agreement shall in no way be construed as a limitation or
extinguishment of any guaranty, security agreement, pledge agreement,
assignment, or any other instrument, document or agreement granting an interest
in collateral for or guaranteeing the payment or performance of the Obligations
executed by any person prior to, or contemporaneously with, the execution of
this Agreement, but all prior or contemporaneous guaranties, security
agreements, pledge agreements, assignments, or any other instruments, documents,
or agreement granting an interest in collateral for or guaranteeing the payment
or performance of the Obligations shall remain in full force and effect in
accordance with their terms.

    18. General Provisions.

     (a)
Amendment. This Agreement may not be modified, altered, amended, or
terminated except by the written agreement of the Secured Party and Pledgor.

     (b)
Severability. If a court of competent jurisdiction determines that any
provision contained in this Agreement is void, illegal or unenforceable, the
other provisions shall remain in full force and effect and the provision held to
be void, illegal or unenforceable shall be limited so that it shall remain in
effect to the extent permissible by law.

     (c)
Choice of Law and Venue. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS. ANY LITIGATION,
SPECIAL PROCEEDING OR OTHER PROCEEDING AS BETWEEN THE PARTIES THAT MAY BE
BROUGHT, OR ARISE OUT OF, IN CONNECTION WITH OR BY REASON OF THIS AGREEMENT
SHALL BE BROUGHT IN THE APPLICABLE FEDERAL OR STATE COURT IN AND FOR TRAVIS
COUNTY, TEXAS, WHICH COURTS SHALL BE THE EXCLUSIVE COURTS OF JURISDICTION AND
VENUE.

     (d)
Notices. Unless otherwise provided, any notice required or permitted
under this Agreement shall be given in writing and shall be deemed effectively
given as hereinafter described (i) if given by personal delivery, then such
notice shall be deemed given upon such delivery, (ii) if given by telex or
telecopier, then such notice shall be deemed given upon receipt of confirmation
of complete transmittal, (iii) if given by mail, then such notice shall be
deemed given upon the earlier of (A) receipt of such notice by the recipient or
(B) three days after such notice is deposited in first class mail, postage
prepaid, and (iv) if given by an internationally recognized overnight air
courier, then such notice shall be deemed given one business day after delivery
to such carrier. All notices shall be addressed to the party to be notified at
the address as follows, or at such other address as such party may designate by
ten days’ advance written notice to the other party:

9

If to Pledgor:

	 	Arkanova Acquisition Corporation 
	 	305 Camp Craft Rd., Suite 525 
	 	Austin, TX 78746 
	 	Fax: 888-329-7716 
	 	Attention: Pierre Mulacek, President
  

If to the Investor: 

	 	To the Address for Notice as provided on the
  
	 	signature page of the NPA. 

     (e)
Continuing Security Interest. This Agreement shall create a continuing
security interest in the Pledged Collateral and shall remain in full force and
effect until payment in full of the Obligations.

     (f)
Preparation of Agreement. Each party to this Agreement acknowledges that:
(i) the party had the advice of, or sufficient opportunity to obtain the advice
of, legal counsel separate and independent of legal counsel for any other party
hereto; (ii) the terms of the transactions contemplated by this Agreement are
fair and reasonable to such party; and (iii) such party has voluntarily entered
into the transactions contemplated by this Agreement without duress or coercion.
Each party further acknowledges that such party was not represented by the legal
counsel of any other party hereto in connection with the transactions
contemplated by this Agreement, nor was he or it under any belief or
understanding that such legal counsel was representing his or its interests.
Each party agrees that no conflict, omission or ambiguity in this Agreement, or
the interpretation thereof, shall be presumed, implied or otherwise construed
against any other party to this Agreement on the basis that such party was
responsible for drafting this Agreement.

     (g)
Nonwaiver. Unless otherwise expressly provided herein, no waiver by the
Secured Party of any provision hereof shall be deemed to have been made unless
expressed in writing and signed by the Secured Party. No delay or omission in
the exercise of any right or remedy accruing to the Secured Party upon any
breach under this Agreement shall impair such right or remedy or be construed as
a waiver of any such breach theretofore or thereafter occurring. The waiver by
the Secured Party of any breach of any term, covenant or condition herein stated
shall not be deemed to be a waiver of any other breach, or of a subsequent
breach of the same or any other term, covenant or condition herein
contained.

     (h)
Entire Agreement. This Agreement sets forth the entire understanding of
the parties with respect to the Pledged Collateral and supersedes all prior or
contemporaneous representations, understandings and agreements, oral or written,
made between the parties effecting the subject matter hereof, and all such prior
or contemporaneous representations, understandings and agreements are hereby
terminated.

     (i)
Parties Bound. This Agreement shall be binding upon and inure to the
benefit of the parties and their respective successors, assigns, heirs and
personal representatives.

10

     (j)
Counterpart Execution. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute but one and the same instrument.

     (k)
Effect on Prior Pledge Agreement. This Agreement replaces that certain
amended and restated Pledge Agreement by and between Guarantor to Investor dated
July 1, 2012 relating to the Pledged Collateral, which prior Pledge Agreement
the parties hereby agree is cancelled and of no further force or effect.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

11

Signatures

     To evidence the binding effect of
the foregoing terms and condition, the parties have executed and delivered this
Agreement as of, but not necessarily on, the date first above written.

ARKANOVA ACQUISITION CORPORATION

	By: 	“Pierre Mulacek” 	 
	 	Pierre Mulacek, President 	 

ATON SELECT FUNDS LIMITED

	By: 	“David Dawes” 	 
	 	David Dawes, Director 	 

ADDRESS FOR NOTICE 

	C/o: 	 	 
	Street: 	 	 
	City/State/Zip: 	 	 
	Attention: 	 	 
	Tel: 	 	 
	Fax: 	 	 

12Arkanova Energy Corporation: Exhibit 10.42 - Filed by newsfilecorp.com

THIS AGREEMENT RELATES TO AN OFFERING OF SECURITIES IN AN
OFFSHORE TRANSACTION TO PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED IN
REGULATION S UNDER THE 1933 ACT) PURSUANT TO REGULATION S UNDER THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”). NONE OF THE
SECURITIES TO WHICH THIS AGREEMENT RELATES HAVE BEEN REGISTERED UNDER THE 1933
ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, NONE MAY BE
OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OR TO U.S. PERSONS
(AS DEFINED HEREIN EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S
UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY
IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS. IN ADDITION, HEDGING
TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN ACCORDANCE
WITH THE 1933 ACT.

AMENDED & RESTATED GUARANTY AGREEMENT

     THIS AMENDED & RESTATED
GUARANTY AGREEMENT (this “Guaranty”) is made and entered into as of,
but not necessarily on, the 6th day of February, 2013, and between Arkanova
Energy Corporation. a Nevada corporation (“Guarantor”) and Aton
Select Funds Limited (the “Investor”)

Background

     A. On even date herewith Arkanova
Acquisition Corporation, a Nevada corporation and a wholly-owned subsidiary of
Guarantor, Arkanova Acquisition Corp. (“Maker”), and the Investor
(“Payee”), consummated the sale by Maker and the purchase by Payee of
certain secured indebtedness of Maker (the “Indebtedness”), and to
evidence the obligation of Maker to pay the Indebtedness Maker executed and
delivered to Payee that certain amended & restated secured promissory note
(the “Note”) evidencing Maker’s obligation to pay to Payee the principal
and interest set forth therein; and

     B. As a material inducement to
Payee purchase the Indebtedness and accept the Note as evidence of Maker’s
obligation to pay for same, Guarantor, being the sole shareholder of Maker, has
agreed to guarantee the payment of the indebtedness evidenced by the Note and
the performance of the obligations of Maker under the Note pursuant to the terms
and conditions set forth herein;

Terms and Conditions

     In consideration of the mutual
benefits to be derived from the covenants and agreements herein contained and
other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, hereby agree as follows:

     1. Guarantee of Maker’s
Obligations. Guarantor, as primary obligor and not merely as surety and
intending to be legally bound hereby, hereby absolutely, irrevocably,
unequivocally and unconditionally, guarantees to Payee the due, prompt and
faithful performance of, compliance with and execution of all of the terms,
provisions, conditions, covenants, warranties, obligations and agreements of
Maker contained in, described in or pursuant to the Note and this Guaranty,
including the prompt and full payment of all indebtedness of Maker to Payee
arising pursuant to the Note and all renewals and extensions thereof, now
existing or hereafter arising pursuant to the Note (the “Guaranteed
Obligations”). In the event of default by Maker in payment or performance of
the indebtedness evidenced by the Note, or any part thereof, when such
indebtedness or other obligations become due, whether by maturity, prepayment or
by acceleration, Guarantor shall, on demand and without further notice of
dishonor, pay the amount due thereon to Payee. In the event of such payment is
made by Guarantor, then Guarantor shall be subrogated to the rights then held by
Payee with respect to the Guaranteed Obligations to the extent to which the
Guaranteed Obligations were discharged by Guarantor. Upon payment by Guarantor
of any sums to Payee hereunder, all rights of Guarantor against Maker arising as
a result therefrom by way of right of subrogation or otherwise, shall in all
respects be subordinate and junior in right of payment to the prior indefeasible
payment in full of all the obligations of Maker to Payee under the Note. This
Guaranty shall be irrevocable by Guarantor until all of the Guaranteed
Obligations have been finally, completely and indefeasibly paid in full and
completely performed.

     2. Nondischargeability of
Guaranty. Guarantor hereby agrees that Guarantor’s obligations under the
terms of this Guaranty shall not be released, diminished, impaired, modified,
affected or limited in any manner whatsoever by the occurrence of any reason or
event, including without limitation, one or more of the following events: (a)
the taking or accepting of any other security for any or all of the Guaranteed
Obligations; (b) any indulgence, compromise, settlement or release which may be
extended by Payee to Maker, Guarantor or any one or more other parties liable in
whole or in part for the Guaranteed Obligations for such consideration as Payee
may deem proper; (c) the lack of corporate power of Maker, the insolvency or
bankruptcy of Maker, or any party at any time liable for the payment of any or
all of the Guaranteed Obligations, whether now existing or hereafter occurring;
(d) any renewal, extension, and/or rearrangement of the payment of any or all of
the Guaranteed Obligations with or without notice to or consent of Guarantor;
(e) any neglect, delay, omissions, failure, or refusal of Payee to take or
prosecute any action for the collection of any of the Guaranteed Obligations or
to foreclose or take or prosecute any action in connection with any instrument
or agreement evidencing or securing all or any part of the Guaranteed
Obligations; (f) the enforceability of all or any part of the Guaranteed
Obligations against Maker by reason of the fact that the Guaranteed Obligations
exceed the amount permitted by law, the act of creating the Guaranteed
Obligations, or any part thereof, is ultra vires, or the officers creating same
acted in excess of their authority; (g) any payment by Maker to Payee is held to
constitute a preference under the bankruptcy laws or if for any other reason
Payee is required to refund such payment or pay the amount thereof to someone
else; or (h) any impairment, modification, change, release or limitation of the
liability of Maker or Guarantor, or of any remedy for the enforcement thereof,
resulting from the operation of any present or future provision of the Federal
Bankruptcy Code or any similar law or statute of the United States or the State
of Texas.

     3. No Setoff. The
obligations, guaranties, covenants, agreements and duties of Guarantor under
this Guaranty are primary obligations of Guarantor and shall not be subject to
any counterclaim, setoff, deduction, diminution, abatement, recoupment,
suspension, deferment, reduction or defense based upon any claim that Maker,
Guarantor or any other person or entity may have against Payee. The obligations
of Guarantor set forth herein constitute recourse obligations of Guarantor
enforceable against Guarantor to the full extent of Guarantor’s assets and
properties.

     4. Continuation of
Guaranty. Guarantor covenants that this Guaranty will not be discharged
except by complete performance of the Guaranteed Obligations contained in this
Guaranty. This Guaranty shall not be affected by, and shall remain in full force
and effect notwithstanding, any bankruptcy, insolvency, liquidation, or
reorganization of Maker or Guarantor.

2

     5. Reliance on Guaranty.
Guarantor recognizes that Payee is relying upon this Guaranty and the
undertakings of Guarantor hereunder in purchasing the Indebtedness and accepting
the Note in connection therewith, and Guarantor further recognizes that the
execution and delivery of this Guaranty is a material inducement to Payee in
purchasing the Indebtedness and accepting the Note as evidence of Maker’s
obligation to pay for same in accordance with the terms of the Note.

     6. Payments under
Guaranty. All amounts to be payable under this Guaranty shall be payable at
the address of Payee set forth in the Note or at such other address as Payee may
from time to time designate in writing.

     7. Representations of
Guarantor. Guarantor hereby represents, warrants and covenants to Payee as
follows:

     (a)
Authorization. Guarantor has all requisite corporate power and authority
to execute, deliver and perform this Guaranty. The Guaranty constitutes the
valid and binding obligation of Guarantor, enforceable against Guarantor in
accordance with its terms, except as enforcement may be limited by bankruptcy,
insolvency, moratorium, reorganization or other laws or equitable principles
relating to or affecting creditors' rights generally.

     (b)
Benefit to Guarantor. Guarantor has derived, or expects to derive,
financial and other advantage and benefit, directly or indirectly, from the
consummation of the transactions contemplated by the Note and the making of this
Guaranty.

     8. Waiver. Guarantor
hereby waives notice to Guarantor of the acceptance of this Guaranty, and of any
default on the part of Maker of Maker’s obligations under the Note to Payee, and
all other notices in connection herewith or in connection with the liabilities,
obligations and duties guaranteed hereby. Guarantor further waives diligence,
presentment and suit on part of Payee in the enforcement of any liability,
obligation or duty guaranteed by Guarantor hereunder.

     9. Enforcement of
Guaranty. Guarantor agrees that Payee shall not be first required to enforce
against Maker or any other person any liability, obligation or duty guaranteed
hereby before seeking enforcement thereof against Guarantor. Suit may be brought
and maintained against Guarantor by Payee to enforce any liability, obligation
or duty guaranteed hereby without joinder of Maker or any other party or without
Payee first exhausting Payee’s remedies against Maker or without Payee first
exhausting Payee’s rights against any security which shall ever have been given
to Payee to secure the payment or performance of the Guaranteed Obligations.

     10. Payment of Expenses and
Attorneys’ Fees. Guarantor agrees to pay, on demand, and to save Payee
harmless against liability for, any and all costs and expenses (including
reasonable fees and disbursements of counsel) incurred or expended by Payee in
connection with the enforcement of or preservation of any rights under this
Guaranty. 

     11. Governing Law. THIS
GUARANTY IS MADE, ENTERED INTO AND PERFORMABLE IN HARRIS COUNTY, TEXAS, AND ALL
PAYMENTS ARE DUE AND PAYABLE IN TRAVIS COUNTY, TEXAS. CONSEQUENTLY, THIS
GUARANTY SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE
STATE OF TEXAS WITHOUT REGARD TO ITS CONFLICTS OF LAW RULES AND ANY LITIGATION
OR OTHER PROCEEDING AS BETWEEN GUARANTOR AND PAYEE THAT MAY BE BROUGHT, OR ARISE
OUT OF, IN CONNECTION WITH OR BY REASON OF THIS GUARANTY SHALL BE BROUGHT IN THE
APPLICABLE FEDERAL OR STATE COURT IN AND FOR HARRIS COUNTY, TEXAS WHICH COURTS SHALL BE THE EXCLUSIVE COURTS OF
JURISDICTION AND VENUE.

3

     12. Termination of
Guaranty. This Guaranty shall terminate and be of no further force or effect
upon the payment of the Guaranteed Obligations in full.

     13. Reformation and
Severability. If any provision of this Guaranty is held to be illegal,
invalid or unenforceable under present or future laws effective during the term
hereof (i) in lieu of such illegal, invalid or unenforceable provision, there
shall be added automatically as a part of this Guaranty a provision as similar
in terms to such illegal, invalid or unenforceable provision as may be possible
and be legal, valid and enforceable, and (ii) the legality, validity and
enforceability of the remaining provisions hereof shall not in any way be
affected or impaired thereby.

     14. Successors and
Assigns. This Guaranty shall be binding upon Guarantor and its heirs,
personal representatives, successors and permitted assigns. Guarantor may not
assign or transfer any of Guarantor’s rights or obligations hereunder without
the prior written consent of Payee. In the event of an assignment by Payee of
its rights or interest in the Guaranteed Obligations including the Note, or any
part thereof, the rights and benefits hereunder, to the extent applicable to the
indebtedness so assigned shall automatically pass with a transfer or assignment
of the Note or any interest therein to any holder thereof.

     15. Entire Agreement. This
Guaranty embodies the final, entire agreement of Guarantor with respect to the
subject matter hereof and supersedes any and all prior or contemporaneous
agreements, representations and understandings, whether written or oral,
relating to this Guaranty.

     16. Effect on Prior
Guaranty. This Guaranty replaces that certain amended and restated Guaranty
issued by Guarantor to Investor entered into as of July 1, 2012, which the
parties hereby agree is cancelled and of no further force or effect.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

4

Guarantor Signature

     To evidence the binding effect of
the foregoing terms, Guarantor has executed and delivered this Guaranty as of,
but not necessarily on, the date first above written.

ARKANOVA ENERGY CORPORATION

	By: 	“Pierre Mulacek” 	 
	 	Pierre Mulacek, President 	 

ACCEPTED:

ATON SELECT FUNDS LIMITED

	By: 	“David Dawes” 	 
	 	David Dawes 	 
	 	Director 	 

5

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