Arcan Resources Ltd ARNBF

update

[zenda]

CALGARY, ALBERTA--(Marketwired - Jan. 15, 2014) -
               
               

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA
               

Arcan Resources Ltd. (TSX VENTURE:ARN) ("Arcan" or the "Corporation") announces production has been fully restored following two separate third party pipeline outages during December 2013 and January 2014. Arcan has also completed drilling two of the four wells in its winter drilling program and anticipates all four wells will be drilled during its winter program and be on-stream prior to spring break-up.
               

Arcan also announces the resignation of Thanos Natras as VP Exploration, to take effect on or before January 29, 2014. Arcan thanks Mr. Natras for his work on behalf of the Corporation and wishes him the best in his future endeavors.

[smithgee]

So why the sell off? Production fully restored and sounds like the first two wells are producers?

[hardeehar]

Why the sell off you ask?  In a nutshell Arcan has a huge debt burden that is unsustainable, and after 6 months since they first announced their intention to sell their DM2 property, it has not yet yielded any results. Absent of any sale of DM2 and with no production growth Arcan's DB/CF ratio for 2014 will be going through the roof at over 8X.  If they can't find a buyer