Arcan Resources Ltd ARNBF

RE: RE: RE: Eric Nutball

[good40]

Nlr2,  if an Ethel area individual well could average 160 bopd for the first year and 80 bopd for the next 6.5 years, cumulative production would be 250k barrels,  or the limit at which waterflood is utilized,  according to your post.  I don't see any reference for over 24 months,  but I seriouly doubt the 80 bopd could be maintained for 6.5 years.  These numbers come from Arcan's website,  but in real life,  not estimations,  the numbers should be supported production numbers as shown in quarterly statements.  From what I've seen so far,  $186 million spent on drilling and well costs,  average production increase of only 12-1300 bopd.  If you use the difference of exit rates,  the difference is a potential 3000 bopd... if they added 30 wells,  the additions accounted for 100 bopd,  first year.  That excludes the decline factor of previous wells.  I can't see this as good enough to support the huge capital expense required.