OTCPK:ARNBF - Post by User
Post by
mombasa1on Nov 23, 2012 12:53pm
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Post# 20636843
Waterflood effect must be kicking in
Waterflood effect must be kicking in Why else would the SP jump up 5 cents for? Here's to it jumping a lot more in the weeks ahead as the waterflood response continues to strengthen.
I don't think anyone really knows just how effective Arcan's waterflood program will be. They stated that they are seeing tangible evidence with varying level of responses. I think Arcan's strategy is to stabilize production at 4000 bbls/d with waterflooding and be able to grow with a modest drilling program.
I suspect Arcan will continue to farm out wells to other parties. They have already drilled one farmed out well and plan another 4-5 more farmed out wells plus two or three 100% wells in Q1. They also should be finished completing the four wells drilled earlier in 2012. These on-going activities will boost Arcan's production profile for next year IMO.
The only thing Arcan needs to do now is get costs down. That will be the ultimate proof that they have really turned the corner.