OTCPK:ARNBF - Post by User
Comment by
hardeeharon May 25, 2014 6:28pm
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Post# 22596719
RE:Arcan slowly gaining traction
RE:Arcan slowly gaining tractionJust checking their presentation. Still a ton of potential here.
Arcan is only being credited for 20% of the OOIP in PDP reserves and only 29% in PP at Deer Mtn.
Ethel is valued even worse at 6.9% of PDP OOIP and 17% of PP OOIP. Adjacent, more mature fields under Waterflood are well over 30% recovered and still producing profitably. So Arcan has a lot of upside in recoverable reserves in DM2 & Ethel. Recoveries to date amount to a measly 10% (of the 20% PDP OOIP) for DM2, and 2.3% (of the 6.9% PDP OOIP) for Ethel. Please correct me if Im wrong, but that's how I interpret it.
How much of a boost it would be to these poor value numbers should Arcan prove they are capable of replicating the results of their last 4 wells. That remains to be seen.