More Water-flood Implications OJ posted the following update on Arcan Resources. https://www.investorvillage.com/smbd.asp?mb=11630&mn=5203&pt=msg&mid=12628732
Note the reference to the impact of their water-flood projects in the Swan Lake area just south of the Pinecrest lands in the Greater Red Earth:
Field reports point to Q1 volumes at or above 4,000 boe/d.... notably above our 3,500 boe/d forecast.
Better than anticipated volumes are attributable to the water flood initiative at Deer Mountain
The fate of the Arcan equity rests on the success of the water flood. Toe-hold positions of both Crescent Point (18.9%) and PetroBakken (17.0%) are less a representation of intent than an option on waterflooding success.
As this year unfolds there will be more and more updates on the tight oil waterflood projects.
As Nuttall said last year: Several investment opportunities are glaring for the year ahead. The first is water flooding. Crescent Point Energy Corp. has been carrying the baton for industry with its Viewfield pilot, and continued success there bodes well for tight oil waterfloods elsewhere. Several junior and intermediates including Pinecrest Energy Inc., Wild Stream Exploration, Legacy Oil + Gas Inc. and Surge Energy Inc. will be testing pilots this year. The investment opportunity is significant because “The Street” is behind the curve in appreciating the low finding and developing reserve growth potential in many of these companies from water flooding recovery methods. Look for Bay Street to wake up to this in 2012, and to begin to place value on this largely hidden upside.
Well Bay Street didn't wake up, in fact they went decidedly comotose on the juniors, but this may be changing as results supplant speculation.
Terr