Exploration & Production | Operational Updates

Arcan Expects to be on Target for Production

Share Print Bookmark    |    Wednesday,November 20,2013

Arcan Resources Ltd. has reported that production and reserves remained stable.

The third quarter financial metrics illustrate Arcan’s progress towards bringing capital spending within cash flow while delivering consistent results.

Arcan expects to achieve its 2013 production target of 3,800 to 4,000 barrels of oil equivalent per day and capital spending of $40.8 million, which is in line with its guidance.

Chief Executive Officer Terry McCoy, said “We’re successfully demonstrating cost controls, while optimizing our development and production.

This is evident in our latest production and reserves figures, which have remained stable over the last year despite a dramatic reduction in our capital spending. We also continue to focus on reducing expenses and capital while realizing production efficiencies towards an end goal of strengthening our balance sheet. To that end we continue to review alternatives, such as monetizing assets, further joint ventures, farm-outs or other arrangements, that would enhance its valuation and financial flexibility while accelerating development of its multi-year inventory of low-risk drilling opportunities.”

Arcan has received an updated mid-year independent reserves evaluation showing that its reserves are largely unchanged from the 2012 year-end reserves report. This updated reserves report was prepared with an effective date of July 1, 2013 and was supplied to Arcan’s banking syndicate, which reviewed the information and confirmed the Corporation’s existing borrowing base at $190 million.