Arcan Resources Ltd ARNBF

RE: RE: RE: RE: Eric Nutball

[nlr2]

I think the figure would  be stretched out further then 7.5 years. The tail would be very long but lower then 80 bpd. The most important thing is the triangle created in the first lets say six months of production, thats what makes the well economic. I totally agree with you that their results so far have not really been were they should be for that huge cash layout. I'm hoping though that when they finally release their exit figures and well results things will make a bit more sense because right now I'm also struggling with what I see when I look at the figures. 

 

The biggest thing I see when I look at this play is the total activity in the area. This play overall must be working because it isnt just Arcan pouring money into it. I see sawed about buying Arcan because as a company they lack some of the things I look for ie top flight management, conservative spending and really steady results. The area though is so exciting that I felt I should have exposure so I bought ARN and SCS. If they can't make it work someone will take them over and make it work. 

 

The difficulty in resource plays though is achieving steady production growth. The declines are a real killer, especially when all your wells are within two years old. Personally I love companies like SGY or LEG that have legacy assets with no declines. We shall see though how Arcan has been doing when they finally release results. Then at least we will both be able to use real figures instead of imaginary. Haha.