OTCPK:ARNBF - Post by User
Comment by
hardeeharon Jan 14, 2013 6:39pm
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Post# 20836990
RE: $30000 per flowing barrel????
RE: $30000 per flowing barrel???? Yes but at least everything appears to be going in the right direction now - increasing production - paying down bank debt - improving waterflood response - cutting costs - farm-out drilling costs.
I'll bet they will easily be over 5000 bbls/d by the time their YE report comes out in April.
Increased production means increased cash flow to pay down even more debt making the D/CF ratio improve significantly in a relatively short period of time. And remember $150 million of Arcan's debt is debentures that are not due for another 3-4 years. So they are using all monies from proceeds of sales & cash flow etc. to pay down their bank debt, which I'm guessing would be around ~$120 million now give or take a few mil. So Arcan's debt may not be much of an issue as some would think.
Everyone likes a turnaround story and this definitely looks like one.
Hold onto your shares and even buy more at this bargain basement price.