RE: RE: Arcan Provides Credit Facility, Reserves a Even though I agree that manageemnt hasn't made the best decisions the past year... The huge drop in NAV is 65% explained by lower oil prices which is out of management's control.
The increased debt that explains the other 35% of the drop should help them reduce future costs of production (via piepline versus trucking the oil) and the waterflood has 'apparantly' been showing positive results and it won't be known how positive until the end of the year and maybe into 2013.
If waterflood shows similar showings at PRY recently had, their reserve bookings will increase and production should stabailize which, int turn, will increase NAV in the new year.
I dont' entirely trust management as they have been overpromissing and underdelivering for a full year now, but now we have a new guy in charge and I did not read this release to be overly optimistic. Maybe they have indeed turned a new leaf, but I believe the market is in "show me" mode for now...