Arcan Resources Ltd ARNBF

RE: Latest release

[tire9]

All the numbers are positive in the press release. After the well has payed all costs (8 months or so ) there is 20 years of production.
Add %25 to %35 yearly to the NAV of $7.25 DEC/2010. Drilling 25 wells per year on the 150 sections (4 wells/section).

Swan Hills: In addition to its wells already drilled, Arcan has
    estimated approximately 400 additional drilling locations in Swan Hills.
    To date, Arcan's reserves bookings from GLJ cover approximately 29 net
    sections. 11 of these 20 sections reflect only primary and no waterflood
    recovery. At the end of 2010, 18.7 MMBOE of recoverable reserves were
    recognized by GLJ. Based on extensive mapping, Arcan's Discovered
    Petroleum Initially in Place ("DPIIP") over this land is estimated by
    Arcan to be over 600 MMBOE with possible recoveries up to 40 percent on
    the Swan Hills play; and
--  Reserves with a 20 year reserve life index weighted 94 percent to light
    oil created a 1.5 times recycle ratio on operating netbacks of $36.36
    per BOE and a $25.05 per BOE finding, development and acquisition
    ("FD&A") costs (proved plus probable ("P+P") discounted at ten percent
    ("PV 10")). Arcan's reserve report recognizes future FD&A costs to be
    $15 in the Swan Hills area, combined with new well netbacks of over $75
    thereby driving high recycle ratios.