Arcan Resources Ltd ARNBF

LTS Results

[nlr2]

In Lightstreams new presentation they say that they have added 1700 BOE/D from 11 wells drilled throughout 2013 and with IP 30's of 370 boe/d. This is pretty interesting as it seems quite a bit better then Arcan was ever able to manage in its heyday of spending a fortune with very little in the way of results. I'm wondering if LTS has been able to fine tune drilling and completetion to improve results. If they have that bodes well for Arcan as we are partners in a number of the wells and should have access to that information.

Production seems to be fairly steady now quarter over over with very little new drilling and some waterflooding providing support. If LTS results are not a function of having better rock and are in fact due to improvements in technique then ARN could have a bit better 2014. If they could scrap together enough money to do 10 wells they could actually add to production for a change. With the share price being a small portion of EV and the play and company held in such disregard any positive news could help change perceptions.

I strongly hesitate to get excited at all about this company as they have never met a target they couldn't miss. Haha. However they have till 2016 to try and turn things around before the first debenture is due. If they are able to divest the asset package they have for sale and can replicate LTS results then potentially there could be a light at the end of the tunnel. Even if they can't divest the package they should be able to limp production higher. I wouldn't rush out and buy but this is the most encouraging data point i've seen for this area, and company in quite some time.