Arcan Resources Ltd ARNBF

brendelly

[coorsman]

ARN's lands are worth multiples of what MEL's BHL land package would bring.

[good40]

No reason ?  We're supposed to take it for granted ?  According to coorsman,  this one is worth more than any stock on any exchange in any country. 

[brendelly]

Tie the books all the way back to Q1 2011 for Midway and you will see a total expenditure of $~20 million land acquisition and the amount of land picked up was around 23 sections ($3400/ha.) this does not include the other 13 sections they already had. The production from MEL lands is not great so neglecting production the total land value is $3900/ha. Total land package average 36 sections

[coorsman]

Agree on the "base case" idea. Then add in all of the derisking ARN has done through drilling all over their land base, massive amounts of infrastructure including roads, pipelines and oil batteries, and last but not least, their own acid production company. Yes, ARN is worth multiples of anything MEL could have gotten.

[good40]

I'd have to question Midways'  interpretation of value when they say $36 million.  Only $20 million was cash,  the rest being a 100% carried interest in three wells.  That saves them 50% of the costs,  not 100%.