Financial Performance and Potential

Balancing Risk & Reward

Arcan is a high-growth junior producer with a large prospect inventory and an experienced, technically adept management team. The Company has the prospect inventory to carry out an aggressive capital program, generating significant growth over our forecast horizon.

Arcan’s capital program will continue to focus on growth through exploration and development in its three core operating areas - but mainly in Swan Hills.

Follow-up drilling at Hamburg continued to define the aerial extent of a significant new pool discovery. Several further development wells are planned and the waterflood is expected to add considerably to the life and value of our asset. Arcan has a large inventory of prospects in this area and will continue to drill impact exploration opportunities in addition to ongoing development.

At McLeod, in this natural gas weighted area and our team has a long history of exploratory drilling in this area for Cretaceous / Jurrasic aged strata as well as much deeper targets.  Arcan has not focused on this area due constrained gas prices.

At Swan Hills, Arcan is focused on its first horizontal multistage frac well in the Deer Mountain Unit #2 (“the Unit”). The first successful well increased productive capacity and recovery from the pool and set up a drilling inventory of 20+ more horizontal wells in the 10 sections of land the comprise the Unit  and potentially 200+ horizontal wells in our adjoining lands. Since 2005, Arcan has added a new oil battery, full water-injection facility and launched a water injection scheme.  Arcan owns 100% interests in over 80 sections of land to the south and immediately offsetting the unit.  Arcan has drilled one horizontal well in the new lands and expects to drill six more horizontal wells prior to the end of Q2 2010.  Based on success, Arcan is planning additional drilling, seismic and the extension of production and injection facilities to develop these lands. 

Arcan’s average daily production is expected to increase from 1,375 boe per day for the twelve months ended December 31, 2009 to over 2,500 Boe/d in 2010.  Although Arcan did not meet its targets in 2007, due to a number of issues, however Arcan did meet its production targets for 2008 and 2009 - and is on track for 2010.

Our Stock

ARN - Arcan Resources Ltd. is a publicly traded company on the TSX Venture exchange.