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.

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 Deer Mountain, Arcan is focused on its first horizontal multistage frac well in the Deer Mountain Unit #2 (“the Unit”). A successful well would increase production 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 100+ 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 interests (30% - 100%) in over 60 sections of land to the south and immediately offsetting the unit.  Arcan has drilled two vertical wells in the new lands and expects to drill two to three more vertical wells prior to April 2010.  Based on success, Arcan is planning additional drilling, seismic and the extension of production and injection facilities to develop these lands. 

Arcan has formed a Devonian team to target higher impact exploration targets. Arcan’s average daily production is expected to increase from 581 boe per day for the twelve months ended December 31, 2006 to 1,178 Boe/d in 2007 and 1,498 boe per day in 2008.  For 2009 Arcan is estimating to average 1,300 – 1,500 boe per day.

Our Stock

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