I thought to post it here too as ARN is one of the players in Beaverhill Lake formation which has BETTER results than Bakken of North Dakota.
I quote the Motley Fool author's comments from the recent article about the BHL formation:
"As I discuss Magnum Hunter (MHR) in this article, I would like to add that I am also favoring the last oil rich formation of Canada, the Beaverhill Lake formation.
The Sweet Spot of the Beaverhill Lake formation where Second Wave Petroleum (SCS.TO) sits, reminds me of the Bakken formation in the oil rich side of the Williston Basin of North Dakota where Magnum Hunter (MHR) operates.
The sweet spot of Beaverhill Lake of SCS.TO gives higher IP 24 hours than Bakken actually. MHR and SCS.TO have similar IP rates (30, 60, 90) and similar decline curves but it must be noted that MHR's well there has a cost around $10M while SCS has a cost below $5M per well according to the company.
MHR's presentation shows all the data. If you do the calculations MHR's average 24-hour IP in Williston is 900 boepd and the average IP-30 is 499 boepd.
Second Wave Petroleum has a total of 35 gross (16.4 net) Beaverhill Lake light oil wells in Judy Creek with average approximate 30-day initial production ("IP"), 60-day IP and 90-day IP light oil rates per well of 500 bbl/d, 283 bbl/d and 219 bbl/d, respectively.
SCS.TO has also IP 24 hours higher than 2,000 boepd.
Apart from Arcan (ARN.V), Second Wave Petroleum (TSX: SCS) is the second junior oil producer in the oil-rich Beaverhill and it is worth noting that Second Wave is way more undervalued than Arcan as it trades for only $65,000/boepd (75% oil and liquids) currently at $0.55/share.
After the big drilling success of H1 2012, I also expect the 2P Reserves of Second Wave Petroleum to rise from 11 MMboe (Dec 2011) to 15 MMboe (or higher) in early 2013 once the new Reserves report is released".
The links:
https://beta.fool.com/traderinvestor70/2013/01/03/enbridge-projects-will-cure-these-canadian-oil-pro/20124/
and this one too:
https://beta.fool.com/traderinvestor70/2012/12/24/three-energy-companies-significant-potential-m-aft/19466/?ticker=MHR&source=eogyholnk0000001