Arcan Resources Ltd ARNBF

What's up with drilling?

[opg210]

Through late winter up until the end of July, Arcan had used 2 rigs continuously (Savanna 603 and 604) plus picked up a third rig for a while. I see now they've dropped rig 604 (off to a Delphi well) and 603 has not done anything since finishing drilling on the 2-17 surf 6-9 well. So, for the first time since January or so, Arcan is not drilling anything. Any ideas as to why the halt?
Could be they're just focusing on getting everything on and will keep 603 going on the next well. Or perhaps there are weather issues around Swan Hills? If they let the 603 rig go as well, that would mean they likely have quit drilling for a spell, which I wouldn't think would be very good news. Luckily their Q2 results are out very soon so all should be explained. It is a bit concerning though to see drilling activity grind completely to a halt.
There could be good reasons of course - such as they have burned through a lot of cash to do all these 12 wells but cash flow has not quite caught up yet. Their last NR said current prod'n was 2,300 b/d I think, which is good, but that by itself probably can't finance continual activity of 1-2 wells per mo ($50/bbl netback would give about $3.5 mm/mo of cash flow, so not quite enough to finance one well per mo).
More patience required I guess. Q2 results should give us a good update on well performance, and the remaining big news for the year would be the reserve report out in probably Nov. I guess I could hope for a takeover announcement somewhere in there as well, that would be nice...
OPG210