Arcan Resources Ltd ARNBF

RE: RE: World's Largest Shale Gas Discovery

[blue_eagle]

even more gas............

Of Paramount importance. After last week’s excellent news from Apache Energy (APA) regarding its huge Laird Basin gas
well, shares of Paramount Resources have been on a nice run. The company owns 127,000 net acres within the Laird Basin. The
company had spudded its first vertical test well in the Laird on January 7, 2012. The well, which was only 8 miles NW of the
Apache well had to be suspended due to warm weather and did not reach its target. POU plans to resume the testing in the
coming winter. A Bay Street analyst noted that while using the rough sales gas per section provided by Apache, Paramount’s
Laird Basin lands could contain up to 14 trillion cubic feet of gas. What got the market all excited last week was Apache’s news
that they flowed a Laird Basin gas well at 21 Mmcf, using only a 6 stage frac. According to Apache, the well is believed to be
the most prolific shale gas resource test well in the “world”. Apache, which has secured 430,000 acres of land in the Liard basin,
released an estimate of the entire Liard play, which it says could contain 210 trillion cubic feet of natural gas, of which 48
trillion are so called sales gas that could be produced from the earth. By comparison, all of western Canada currently produces
about five trillion cubic feet of natural gas a year. The company commented that the basin is so prolific that it could turn a profit
at $2.57 per mcf. The well was drilled in 2009 and kept secret by Apache, so that they could amass a huge land position in the
Laird