Arcan Resources Ltd ARNBF

good update incr reserves and nav

[thedave2006]

Arcan Announces a 67% Increase in Reserves Volumes and a 65% Increase in Reserves Value
07 Nov 2011 09:00 ET

Marketwire Canada - NFD

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Arcan Resources Ltd. (TSX VENTURE:ARN) ("Arcan" or the "Corporation") announces the results of an independent reserves evaluation prepared by GLJ Petroleum Consultants ("GLJ"), Arcan's independent qualified reserves evaluator, for 100% of Arcan's oil and gas properties (the "GLJ Update Report"). The GLJ Update Report, effective September 30, 2011, was prepared in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101") and the COGE Handbook and is dated November 4, 2011.

In accordance with the updated information provided by the GLJ Update Report, Arcan is pleased to report a current estimated net asset value ("NAV") of $7.17 per share as at October 7, 2011 (after including the shares and debentures issued and the related proceeds from the October 7, 2011 financing), up from $5.56 per share at December 31, 2010 based on reserves of 35.2 million barrels of oil equivalent ("MMBOE") and a $773 million net present value at September 30, 2011 (total proved plus probable ("P+P") 10% discounted).

Highlights:


-- Estimated NAV of $7.17 per share up from $5.56 per share at December 31,
2010. Pursuant to the GLJ Update Report, reserves were recorded on
approximately 57 sections of land in the Swan Hills area - leaving Arcan
with approximately 114 sections of land with no reserves yet recorded on
them.


-- $773 million net present value of future net revenue of working interest
total P+P reserves before tax at 10% discount rate up 65% from $468
million posted as at December 31, 2010.


-- 35.2 MMBOE total P+P reserves, as at September 30, 2011, representing
67% growth in 2011 versus 21.1 MMBOE total P+P reserves as at December
31, 2010.


-- 19.7 MMBOE total proved reserves, as at September 30, 2011, representing
42% growth in 2011 versus 13.8 MMBOE total proved reserves as at
December 31, 2010.


-- The GLJ Update Report included 66.3 net proved producing wells in the
Swan Hills area with a total of 151.4 net total P+P well locations
booked at September 30, 2011. Future capital has increased by $211
million to $411 million in the GLJ Update Report since December 31,
2010.


-- Arcan's reserves are 94% light oil and NGLs.




Arcan's Swan Hills Beaverhill Lake Asset

Arcan is spearheading the development of the Swan Hills Beaverhill Lake reservoir. Based on waterflood recoveries of up to 40% in offsetting areas of the reef, Arcan is of the view that this has the potential to translate into recoveries over 270 MMBOE (95% light oil), with Arcan having recorded under 15% of those recoverable reserves at 35.2 MMBOE in the $7.17 per share NAV estimate. Arcan estimates that there are over 400 drilling locations through the center of its land base and anticipates that with 171 net sections of land drilled to four wells per section, the inventory of locations could continue to show substantial growth.

Net Asset Value

As detailed in the table below, Arcan's NAV of $7.17 per diluted share (on the basis of total P+P reserves discounted at 10% at September 30, 2011) has increased by 28% over the $5.56 per diluted share reported at December 31, 2010. As at the date of this release, Arcan estimates that it has invested $175 million and grown the present value of the Corporation's reserves by $305 million (total P+P PV 10) in 2011. Arcan's 2011 expenditures to date include its acquisition of Stimsol Canada Inc. ("Stimsol") on September 13, 2011. Arcan anticipates total capital expenditures for 2011 of $225 million and, as at October 7, 2011, estimates that it has $25.0 million in positive working capital, $171.3 million in outstanding debentures and $120 million of available bank lines, leaving Arcan with approximately $145.0 million of available capital capacity.

[BioBilly]

Sure makes me warm and fuzzy. Great news.

[profess]

Thanks for spreading the updated reserves news thedave2006. That should kick-start the SP run-up prior to their Q3 results, which is expected to come out later this week. Better back up the truck up to snag a few thousand more shares...beep...beep...beep. This baby's going over $6 by the end of the week. 

[tire9]

News on Yahoo, but not on RBC or S.H. I hope they transfer to a T. listing. The buyout of the FRAC outfit was a good move, IMO Update on wells drilled & fracked should be very positive when released. Crescent point investment month ago . Crescent Point Energy Corp. ("Crescent Point" or the "Company") announces that it has acquired a total of 1,748,000 common shares, at

[good40]

Quick look at their reserves... I can't possibly see the current NAV being worth $7.17 per share.  I suppose there are many here who want it to be worth that amount... but only 35 million bbls,  not all oil,  not all developed and no considerationfor tax.  Subtract the liabilities such as debt... can't see it.  This is currently very expensive.

[tire9]

Thanks good40 now Crescent Point will short the stock, hammer the price down and come back with an offer.Reserves Nov/07/2011Arcan's Swan Hills Beaverhill Lake Asset Arcan is spearheading the development of the Swan Hills Beaverhill Lake reservoir. Based on waterflood recoveries of up to 40% in offsetting areas of the reef, Arcan is of the view that this has the potential to translate

[tire9]

Not an official of Cescent Point so you can take my free advise for what it's worth= ZERO

[mombasa1]

Your point puts it all into perspective tire9. The part that says 35 MMBOE represents only 15% of the total estimated recoverable reserves of 270 MMBOE is what makes this play really exciting. Of course we have to take Arcan's word for that as it has yet to be proven.  The question is do you believe them or not? Fortunately for us their estimates are based on

[good40]

It's actually a little worse than I thought... they really only have about 27 million barrels (2P) net... the 35 million barrel figure is gross reserves... net is the only number to have value.On a per barrel basis,  they are really saying that NAV is around $28.... ridiculously high, around 3X for reserves that are mostly undeveloped and non-producing. Currently much too expensive