OTCPK:ARNBF - Post by User
Post by
mathwhizon Aug 20, 2013 3:08pm
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Post# 21684241
Food for thought...
Food for thought...
Food for thought, and if you aren't concerned by the latest release you should be. Arcan's ownership in the Deer Mounain Unit #2 gives them more than production. Arcan's production (including production from Ethel and Ethel South) flow north to the 10-19 Battery/Plant for processing and shipping to sales. If Arcan sells their interest in DM Unit #2, they no longer have processing capacity for their product and become vulnerable to 3rd party processing fees. What does this mean to me ... another kick in my portfolio. Instead of paying just operating costs for their production thru put, Arcan will have to pay a capital recovery feel to the new Owner/Operator. Reading between the lines ... they will get a small amount of cash to pay down debt from the Purchaser. Then in turn they will pay the Purchaser a capital recovery fee for every single m3 of oil which is processed at
Deer Mountain and flows down the Pembina Sales Line. Brilliant ...
just F*&^ing brilliant decision.