some info from stockmarketopedia
Actively Buying Stocks? – Arcan Resources Ltd. is a Must Buy Oil Stock
If you feel the stock markets are approaching bottom and you are actively buying stocks we do not want to tell our readers how to buy stocks but strongly suggest you take a look at Arcan Resources Ltd. as we feel it is a must buy oil stock.
This oil stock is a $250 million dollar market cap stock with a 90% light oil weighting. This oil stock has over 400 net horizontal locations in the Swan Hills area of Alberta with over 170 net sections of land. Arcan believes waterfloods can increase oil recovery factor to 40% or 400,000 bbls/well. The stock provides great exposure to light oil and tremendous upside, so if you are currently stock trading the North American stock markets, we strongly suggest you take a look at this stock.
Haywood Securities Inc. has a target price of $8.25 for this hot oil stock which would equate to a return of over 200%. National Bank has a target has a target price of $6.50 which equates to a return of over 100% which makes this one of the top oil stocks available on the North American stock markets. Arcan has the potential to provide much better returns than it’s large cap peers which income BP, IMO, COP and CHK.
This oil stock recently increased it’s borrowing limit on existing credit facility to $200MM from $120MM. As we expected, Arcan has increased its credit facility to $200MM on the back of stronger 2011 PDP reserve values. Management has stated that going forward, the Company will continue to live within cash flow and that the new line exceeds the Company’s financial requirements..
This oil stock provided reconfirmed production guidance for 2012 of 6,000 – 6,500 boe/d which constitutes a 91% increase over 2011 production at the midpoint of guidance. Additionally, as the company continues to add infrastructure, Management of this oil stock expects operating costs to continue to decline. Arcan continue to have drilling success which can be seen in our monthly review of drilling results for oil and gas stocks.
In stock trading the stock markets a lot of our advisors and users feel the stock market is approaching bottom and although we do not want to tell our users how to buy stocks, we feel that this oil stock is definitely worth a consideration as a stock to hold in your portfolio.
For the Canadian investors this is stock is both RRSP and TFSA eligible.