Arcan Resources Ltd ARNBF

Don't know what to believe anymore

[hardeehar]

One thing for sure is you can't trust Arcan management anymore!

They sugar-coat everything, brazenly suggesting that they are committed to adding long-term value to shareholders.  Yeah Right!  What a bunch of BS!

Not looking forward to the next downward revision in production guidance, and subsequent cut in credit lines ultimately leading to their demise.

I see they pulled the corporate presentation from their web site.  My guess is they finally realized it was filled with just too many false claims, and they could be sued for slander if they left it up there.

Not looking good & not at all impressed.

[hardeehar]

What I meant to say is by leaving the Corp. Presentation on their web site they could be sued for false claims, not slander.

[pol3390]

The Corporate Presentation is still there on the main page and under Investors.https://www.arcanres.com/PDF/Corporate_Presentations/Arcan_AGM_Presentation_June_2012.pdf

[hardeehar]

That's not the Corp. Presentstion I'm referring to.  The one there now is the presentation DP gave at the AGM. There used to be a more detailed, comprehensive presentation at least 3 times as.long as that with graphs and charts showing well type curves, waterflood response, etc.  It appears they pulled it when Ed Gilmet's was let go.  Pretty obvious he was the one

[bakken13]

Not everything was management's fault, but they are responsible for getting the company in a debt squeeze. Now, with the share price devastated, they cannot issue shares, nor borrow money, to grow production. The best we can hope for is to survive until oil hits $140/bbl again, or CPG comes in with a stink bid that most would accept. It has been an ugly end for such a promising company.

[dropzone]

No doubt debt was increased but it appears the debt was used to enhance the value of the asset.  It also appears almost all Jrs. share price has tanked and many have increased debt but ARN has fared worse than most. The purchase and disposal of the stimulation business was a disaster.  The lawsuit with a former employee and the subesequent resignation of Ed Gilmet didn't help either.

[bakken13]

We will have a much clearer picture after the next quarterly report. ARN isn't the only junior to get caught with too much debt, as the huge oil price discounts we saw this summer hit the cash flow of all producers. A lot of ARN's problems came about simply from lousy timing. Those discounts have mostly disappeared lately, so hopefully their numbers are much improved.

[mombasa1]

Agreed bakken.  Now that Arcan's Q3 is finally over I think the worst is behind us (touch wood). Now we just have to wait for news on the Co's bank credit line review and any operations updates that they would like to share with us before the Q3 report comes out which we can expect around mid-November. PS. Thanks for the PI Financial update post hardeehar.  It suggests things are

[Feruk]

Wait, what other smiliar juniors ran themselves into anywhere near this much debt trouble? I track about 12 of them, and if we're gonna compare apples to apples (similar production, high oil weighting), NONE of the ones I watch got themselves into anywhere near as much trouble. If I'm doing my math right, I get a debt/FFO ratio of ~5.5 or higher on my 2013 assumption. Seems

[avonbob]

I would agree they should have levergaged their overvalued paper from a year ago into acquistions knowing the debt level they were carrying was unsustainable at their current size....so what do they do make the CFO who is the financial gatekeeper the new president and take a board member who okayed that promotion and make them the new CEO....its the blind leading the blind and shareholders