Post by
hardeehar on Oct 25, 2014 7:52am
Looking Forward
At 13 cents the investment community obviously holds little hope that Arcan will be able to survive in a low oil price environment. It's embarrassing and humiliating how much $$ shareholders have lost on this play, and Mgmt's position is to remain blinded to that fact. Ignorance is bliss!
The last vestige of hope I have left is production appears to have stabilized at around 4000 bbls/d. So this fall & winter's drilling program will result in net additions to that base. If they can achieve the same well results from last winter (IP60 ~450 bbl/d) then I would reasonably expect another ~1500 - 2000 bbls/d added to the bottom line based on their 9 well drilling pgm. So Arcan would be producing at a stable rate of ~5500 - 6000 bbls/d by next spring? At least it appears they are heading in the right direction - even though it may be too late for them to recover with so much debt and low oil prices.