Prior to becoming a publicly traded entity, Arcan was incorporated in October 2003, and initiated operations in April 2004. From a standing start, the Company has grown production through drilling.

On January 1, 2007, Arcan amalgamated with Desco Energy Ltd., resulting in a publicly traded company retaining the Arcan name.

Arcan has 3 core areas: Hamburg, McLeod and Deer Mountain. All of these areas are high impact long life multi-zone in the west five and west six areas of Central and Northern Alberta. Arcan is approximately 75 percent oil weighted and all of our oil production is greater than 40º API sweet crude.

For the year ended December 31, 2007 Arcan achieved a top quartile 17.5 year reserve life, proved plus probable finding of a development and acquisition (FD&A) cost of $24.11 per Boe (after significant facility investments in two waterfloods), and a recycle ratio of 1.5 (defined as Revenue less royalties and operating costs divided by FD&A costs), which means that for every barrel Arcan produced it found 1.53 more. Arcan's target to achieve better than a 2.0 recycle ratio. For 2008 Arcan is targeting average daily production of 1,500 - 2,200 Boe/d.

Arcan has a large exploration and development inventory in each of its three areas. Arcan and its 18 dedicated employees are focused on one key goal of adding net asset value per share. Arcan is a full cycle exploration company through the drill bit and will add acquisitions that consolidate our holdings or accelerate our growth, but our ongoing success does not depend on acquisitions, rather it is enhanced by such strategic acquisitions.