RE: RE: RE: RE: Home from the AGM-FishArcan mentions they drilled and abandoned a well in the McLeod area which was spudded on Aug 1st but they also spudded a well in the Hamburg GG on Aug 5th. Is AOS involved in that?
In the second quarter of 2009, Arcan expended $200,000 in capitalwhile bringing in $2.7-million in funds from operations. As a result,Arcan exited the second quarter with $40.4-million in debt and workingcapital -- well within its $50-million of secured bank lines. With oilnear $70 per barrel, Arcan has elected to commence drilling itsdevelopment program in the Hamburg GG light oil pool, with the firstwell spudded on Aug. 5, 2009.
The journey to development of theGG light oil pool began with the discovery wells in January, 2006, andculminated with the full approval of the waterflood and all-weatheraccess in the first quarter of this year. Since receiving thelong-awaited approvals, Arcan has been injecting approximately 2,000barrels of water per day in an effort to catch up to some of thehistoric voidage. Arcan has budgeted two to three (one to two net)wells to be drilled by the end of 2009 as part of a program that mayinclude up to eight wells (five net), as well as one water-source welland the conversion of one well to an injector. Estimated currentfacility capacity and production from this pool, under fulldevelopment, is estimated to be over 3,000 (1,500 net) barrels per dayof low-decline, 41-API light sweet oil, with an estimatedeight-to-12-year reserve life index. With current royalty incentivesand commodity prices, Arcan estimates payout for these wells inapproximately 100 days.
Arcan and its partner drilled andabandoned an exploration test in the McLeod area. The well was spuddedon Aug. 1, 2009, at an estimated net cost of $200,000 to Arcan.