RE: Value of Arcan $25 per barrel seems high based on recent transactions.
However, with the waterflood underway and all the drilling they did this year, booked reserves whould have a nice increase in the new year.
Tjhe market discounts all the infrastruture they built. But those pipelines etc have real valeu to an acquiror and it was needed in that field no matter who developed the land. They debt ballooned because fo this but there is value there.
Don't also forget about the tax pools. Anacquiror will be able to shield $130m+ of income from taxes in acquiroring those tax pools. Noone would give them full value for them, but even at a 50% dicount, that's $65mil or $0.65 per share worth alone.
Add those tax pools and infrstruture into the equation and I believe this Company getting taken out anywhere south of $3 looks incredebly cheap.