Arcan Resources Ltd ARNBF

RE: RE: Volume has been picking up...

[nlr2]

Good40 what companies in the junior energy sector do you like? I find personally that any that have good prospects and aren't gas weighted trade at a surplus to their proved resources and cash flow. Even some of the gas companies TOU and CLT come to mind as trading at outrageous valuations. Arcan is by no means an oddity in the sector. Also, and this is just an honest question, is the NAV of $7ish dollars meaningless? Or just not a figure you care to use? I've never really put to much stock in it as far as finding value, I prefer to look at the assets and potential production growth. To me NAV only matters for getting your credit lines increased and potentially for takeover valuation. generally a flowing barrel of oil is valued at $100,000 so I would say currently ARN would be 360,000,000ish and exit the year at 600,000,000. An acquirer would be able to book reserves on the 1/3rd of the land base that ARN has assigned reserves then over the next few years book reserves over the remainder. I would say that is a fairly impressive speculative upside, even from these levels. Especially for an intermediate or senior who could fund development strictly from cash flow. I hate the use of convertible debentures because I feel like people use them to set up arbitrage situations and put pressure on the common shares. I can't say how exactly because I'm not sure, haha, but it happens for many companies that issue them.