high-growth junior producer
Exploration, development and acquisition of Petroleum and Natural Gas - Alberta
Message: Arcan Announces a 67% Increase in Reserves Volumes
Arcan Announces a 67% Increase in Reserves Volumes and a 65% Increase in Reserves Value
CALGARY, ALBERTA--(Marketwire - Nov. 7, 2011) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Arcan Resources Ltd. (TSX VENTURE:ARN) ("Arcan" or the "Corporation") announces the results of an independent reserves evaluation prepared by GLJ Petroleum Consultants ("GLJ"), Arcan's independent qualified reserves evaluator, for 100% of Arcan's oil and gas properties (the "GLJ Update Report"). The GLJ Update Report, effective September 30, 2011, was prepared in accordance with National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities ("NI 51-101") and the COGE Handbook and is dated November 4, 2011.
In accordance with the updated information provided by the GLJ Update Report, Arcan is pleased to report a current estimated net asset value ("NAV") of $7.17 per share as at October 7, 2011 (after including the shares and debentures issued and the related proceeds from the October 7, 2011 financing), up from $5.56 per share at December 31, 2010 based on reserves of 35.2 million barrels of oil equivalent ("MMBOE") and a $773 million net present value at September 30, 2011 (total proved plus probable ("P+P") 10% discounted).
- Estimated NAV of $7.17 per share up from $5.56 per share at December 31, 2010. Pursuant to the GLJ Update Report, reserves were recorded on approximately 57 sections of land in the Swan Hills area – leaving Arcan with approximately 114 sections of land with no reserves yet recorded on them.
- $773 million net present value of future net revenue of working interest total P+P reserves before tax at 10% discount rate up 65% from $468 million posted as at December 31, 2010.
- 35.2 MMBOE total P+P reserves, as at September 30, 2011, representing 67% growth in 2011 versus 21.1 MMBOE total P+P reserves as at December 31, 2010.
- 19.7 MMBOE total proved reserves, as at September 30, 2011, representing 42% growth in 2011 versus 13.8 MMBOE total proved reserves as at December 31, 2010.
- The GLJ Update Report included 66.3 net proved producing wells in the Swan Hills area with a total of 151.4 net total P+P well locations booked at September 30, 2011. Future capital has increased by $211 million to $411 million in the GLJ Update Report since December 31, 2010.
Arcan's reserves are 94% light oil and NGLs.
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