Arcan Resources Ltd ARNBF

Take over

[rockman998]

There was an analyst on BNN tonite discussing CPG and how they are leveraging their low cost of capital for acquisitions. Their production is valued by the market capitalization at $140k per flowing barrel and they are presently  buying companies in the $ 70,000 / flowing barrel range. I thought they were paying a little more than that. However, at $ 70,000 / flowing barrel they wouldn't cover the $ 350m debt of ARN.

Petrobaken recently increased their capex for the 4th quarter and their original cash flow projections for the year are going fall short of their original guidance by $200m. If they were to consider a take over of ARN at  the present price of ARN plus debt, they would need approx. $ 475m. I think they will need to arrange for additional credit lines. The additional credit line I think is possible but I doubt they would want to be stretched to buy the over priced ARN infrastructure assets.

[wordless]

Wwhat about a combination of ARN, PBN and CPG. CPG could have effectively purchased another 17% of ARN today and got around the poison pill.

[rockman998]

Interesting combination, however, as I previously stated ARN debt eliminates them from the profile CPG is looking for. However, PBN and CPG merger? When CPG had production of 60,000 barrels per day a couple of years ago their cap was 225M shares. Since then they have issued 125m shares to raise approx. $5B for acquisitions which have netted them 50,000 barrels per day of production. I think this

[onad77]

Rockman Stop wasting your breath. Everyone knows your game. You've shorted Arcan and you're trying to put out every negative spin possible to negatively influence the board. Considering you're going against a very large wave (CPG & PBN) and a successful water flooding program, I would strongly suggest that you cover your short positions before getting completely wiped out.

[rockman998]

Actually I was just responding to comments from Wordless. It's obvious I don't like the way ARN is run but I'm not alone. The market has dropped the stock from $6 to under a buck. It too bad you take such offense to some one who disagrees with you. I'm not short and only an idiot would short this stock, its too pronge to unknown events. I was long until yesterday. My

[wordless]

There is some good discussion and good analysis about the combination of the 3 companies over on Investor Village