Arcan Resources Ltd ARNBF

$30000 per flowing barrel????

[poise]

Just loaded up heavily. The value of their oil is currently $30,000 per flowing barrel. Obviously a huge correction to the upside is imminent.    This company will soon be sold for $100,000 per barrel this year.

[skeksis]

You forgot to account for debt.  Enterprise value is 431 million and production is ~4500 bopd.  So $96k per flowing barrel current valuation.  But the NAV is over $4 per share and that is using conservative assumptions about waterflood recoveries.  Reccommend checking out new presentation on their website.

[hardeehar]

Yes but at least everything appears to be going in the right direction now - increasing production - paying down bank debt - improving waterflood response - cutting costs - farm-out drilling costs. I'll bet they will easily be over 5000 bbls/d by the time their YE report comes out in April. Increased production means increased cash flow to pay down even more debt making the D/CF ratio improve

[bakken13]

You will have to excuse poise, as he is a very senile old oilman. Makes far too many investing mistakes. But as far as ARN goes, it would appear that we have risen from the grave, and should survive quite nicely. We could indeed see $2 again one day, maybe sooner of CPG ever decided to put us out of our misery. The debentures are an especially good buy, as they are trading at a discount, and

[nlr2]

Glad to see Arcan finally open up and reveal exactly what has been and will be going on. Economics on primary recovery isn't fantastic unless I'm missing something. Seems like they have a much better grasp on the geology now then they did in the past. Farm out info looks very encouraging and Petrobakken is an excellent partner. PBN has many flaws as a company but technically I have always

[poise]

Just completed my 100,000 share purchase.  Welcome back LV.

[JohnMarzolf]

The chart on this is dismal the worst I have ever seen.  90% decrease in less than a year.  They are now giving away the store to stay alive.  This thing was beyond overvalued when I bought it and clearly it was best to sell it a long time ago.  I can't see any future for this company in the next 2 years.  Most of my contacts in Calgary think this goose is cooked. When

[rockman998]

I agree John and obviously so does the market. ARN's next qtr results will indicate whether ARN can survive. They have to substantially improve their FFO over last qtr. If they don't the stock is headed below 90 cents. The farm-in doesn't provide much in the near term, however PBN did provide the capital they needed to retain the property. Their only near term hope is a rise in the

[needtomakeabuck]

I disagree....PBN and CPG did not get into ARN because it is such a lousy investment.  I KNOW that the PBN senior mgt. think that ARN's land has tremendous upside thus the farm in's.  Two majors buy over 36% of this company and start working with them is huge!  NOT TO MENTION the water flood program. $0.90 is not coming back anytime soon.  Get in while you can