ARCAN’s Prospective Future Performance

After averaging 1,498 Boe/d in 2008, Arcan is estimating 2009 average production of 1,300 - 1,500 Boe/d. Directional allocation of capital outlay for 2010 is 10% toward McLeod, 85% at Deer Mountain and 15% at Hamburg.

The quality of Arcan’s asset base ranks favorably within the context of its peers in our small cap universe. Management has put together a balanced portfolio of opportunities, ranging from low risk vertical and horizontal multi stage frac development/optimization of the Deer Mountain Unit #2 to the high impact nature of the Slave Point play in the Hamburg region. Arcan has a large portfolio of development drilling supported by infrastructure we already built and own. Our cash flow base has been firmly established to patiently fuel what is ultimately expected to be an active exploration program.