Arcan Resources Ltd ARNBF

RE:RE:RE:Presentation

[skeksis]

I have an etrade international account and it lists the debentures but if you try to buy them the trade will never go through.  After about a dozen emails and three phone calls with their customer service I was told you can't buy them after all; only stock trading is allowed.  Interactive brokers is the same and the Canadian brokerages that let you buy exchange traded debentures seem to require you to be a Canadian citizen to open an account.

I agree with your comments about running in place although this is really a general problem with small E&P companies, with the major difference being that Arcan can't issue stock on favorable terms.  Last year Arcan added reserves from cash flow only but did not increase PDP reserves, which is really the point.  I do think that because the drilling rate has slowed, more of their wells are older, meaning they are on the more gentle slope of the decline curve.  Also the waterflood is stabilizing the declines.  So the maintenance capex has declined a bit to the point where they should be able to very slowly grow production from cash flow.  Although I wonder if it would increase free cash flow faster to buy back the debs.