Arcan's Waterflood response showing strong results.
Check out pages 17 & 18 in their presentation.
How can you not get excited when wells show a positive waterflood response of over 100% in production gains! According to their graphs one HZ well went from 150 to well over 300 bbls/d! Even old vertical wells in waterflooded areas are being revived to produce from what was a trickle to what is now over 100 bbls/d!
WOW!
Just think of the production gains to be had from waterflood alone nevermind from the drilling of new wells!
I will just throw some numbers out there for an example.
Say for instance, that the pressure-depleted wells in Ethel & DM2 responds to H2O flooding on average by 30% to be conservative - or say by 20 bbls/d on a 50-70 bbl/d Hz that has been on production for about 2 years. So 20 bbls/d production gain on a per-well basis amounts to 1000 bbls/d for 50 wells! That may not sound like much but remember that the wells at this point in their cycle have been paid for and what is being tapped from them now is pure profit!
But whats really exciting is the fact that my numbers could be way off when you consider the positive responses from specific wells that they show in the presentation. These wells are showing anywhere from 40 - 150 bbl/d increases after already being 2 years on production!
WOW AGAIN!
This may be a stretch but based on whats being reported, I suspect waterflooding will have a significant impact that will in effect double Arcan's production profile than if there was no waterflood.
In the unlikely scenario that they don't get bought out, Arcan is on the cusp of achieving what most junior oil companies can only dream of - reaching the 10,000 bbl/d plateau and well on their way to mid-tier status.
I hate chasing a stock, but with the way Arcan is looking I can make an exception.
I still may be able to pick up more shares under $6.