Arcan's Q2 Production isn't a secret. It is available on public data. Accumap, Geoscout and PRA will all have the production listed. Once the Q2 financials are out, there is a good chance their 5250 BOE's will once again be proven wrong. The VH's well is a strong producer but not enough to make up for the decline in prod.
$7 million VH asset sale barely pays the interest on what Arcan owes the bank, so probably a good thing that it is earmarked specifically for that.
Q2 2012 is a 83% increase over Q2 2011, too bad they only had to bring on 40+ wells in order to do so. I would hope after a $200 million dollar year, they would post significantly increased production. That being said, at the AGM in May/June 2011, they claimed they were at 4000 BOE for Q2 2011, did they not?
A company they purchased exactly a year ago for $24 million has now posted an $8 million dollar loss on acid inventory. Now, they purchased Stimsol to supply acid... But, they signed a 1 year deal last summer with Sanjel to purchase acid at double the market value, remember the article on that? How much acid has been purchased from Sanjel? How much from Stimsol? How much did they pay out to Sanjel to break the contract, if anything?
Did anyone read the Forward-Looking Information and Statements?
' that Arcan will continue to conduct its operations in a manner consistent with past operations' Yikes! That is more of a threat than a promise of things to come!
' the accuracy of current horizontal production data, historical well production and waterflood results' You are concerned about the accuracy of your current production data? The majority of your current wells are HZ...
'Arcan's production rates may not reach the levels currently expected; the application and modification of horizontal, multi-stage fracture technologies may not have the impact currently anticipated by Arcan; the future drilling locations identified by Arcan may prove to be unsuitable or unavailable and drilling on the locations identified may not occur; water injection at additional sites in the Deer Mountain Unit #2 or in the Ethel field may not have the impact on production currently anticipated by Arcan' That is quite the disclaimer.
'the operation of Arcan's oil gathering pipeline and the Pembina pipeline may not have the impact on operating costs currently anticipated by Arcan and there may be interruptions of service in the future' They have had issues with their new, shiny, expensive oil gathering PL. Something about the PL being built on an uphill slope and nobody thinking that additional pressure was requred to push the fluid through? It was fixed, but at what cost?
They need a significant management change. Given who is on their Board however, that will never happen. Their Board memebers are rewarded for agreeing with management not looking after the best interests of the stockholders, from what I can see.