Arcan Resources Ltd ARNBF

RE: RE: RE: RE: Profess

[profess]

If DM2 performs as well as they expect it to - and I see no reason to doubt that based on decades-long history of Waterflooding in the greater Swan Hills trend - well that changes everything.  The message I got from the AGM is Waterflood response is just starting to kick in, and improved results are expected to continue over the next several months.  I'm prepared to wait it out to see where DM2 peaks out at.  Holding a long-life asset thats producing over 2000+ bbl/d of LSC with infrastructure in place is worth a lot of money and will handily take care of Arcan's debt problems.  I get the feeling that is how its going to play out over the next year or two.  

Ethel is now the area where they are focusing on which has a lot more oil recovery potential than DM2.

Whatever happens, Arcan in my mind has reached a stabilized production rate at 4000+ bbls/d.  And with significant hedges in place that gives them more than enough breathing room to survive, or based on their track record and investor skepticism - more than enough rope to hang themselves with...