Arcan Resources Ltd ARNBF

RE: Exit rates

[good40]

That wouldn't be even close to what they need tire9... capex required for 2011 was $225 million and average production only increased 500 bopd from their 3000 bopd 2010 exit rate.  They've shown that funds from operations are about $10 million per quarter,  or $40 million per year. If you double that,  it's only $80 million.  The biggest problem however,  is that the current share price already includes the assumption of a profitable business plan,  to the tune of $500 million or so. The mismatch here is the single digit production level and the $200 million capex.