OTCPK:ARNBF - Post by User
Post by
mombasa1on May 20, 2014 11:53pm
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Post# 22580712
Wonder what caused the 15% drop today?
Wonder what caused the 15% drop today?The chart was looking real good too.
Hopefully this is just a head-fake before it continues on the strong uptrend.
The thing that would really unleash the stock would be the sale of DM2 & DM West.
Production from DM2 has been pretty stable for many months now. They did drill 1 well there over the winter drilling program just to top things up again, but the Waterflood continues to shore up production as each day passes. As time passes the properties are becoming more & more valuable, and less costly to operate too. Arcan should be able to get close to what they want and I'm surprised it hasn't been scooped up by now. Can you imagine if they were able to pay down half their bank debt and redeem the 1st series of debentures from the sale - and still be left with 2500 bbls/d of production that could easily be ramped back up to over 3000 bbls/d with a few more wells?
The sale of DM2 is going to be the game-changer for Arcan IMHO.