Arcan Resources Ltd.
TSX VENTURE : ARN

Arcan Resources Ltd.

March 31, 2010 13:21 ET

Arcan Resources Announces Closing of Asset Acquisition

CALGARY, ALBERTA--(Marketwire - March 31, 2010) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.

Arcan Resources Ltd. ("Arcan") (TSX VENTURE:ARN) is pleased to announce that it has successfully completed its previously announced acquisition of interests in 102 gross (81 net) sections of land in the Swan Hills area of Alberta with approximately 500 boe per day of existing production, for a cash purchase price of $53.25 million (the "Acquisition"). The purchase price of the Acquisition was funded from the net proceeds of the private placement offering of 26,000,000 subscription receipts ("Subscription Receipts") of Arcan that closed on March 24, 2010.

In connection with the closing of the Acquisition, each Subscription Receipt was deemed to be exercised and the holder received, without payment of additional consideration, one common share of Arcan. Arcan filed a preliminary short form prospectus and a final short form prospectus on March 5, 2010 and March 25, 2010, respectively, in each of the provinces of Canada other than Quebec to qualify the distribution of the 26,000,000 common shares of Arcan issuable upon the deemed exercise of the 26,000,000 Subscription Receipts.

These securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state, and may not be offered or sold in the United States unless an exemption from registration is available. This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities in the United States.

BOE Presentation Production and reserve information is commonly reported in units of barrel of oil equivalent ("boe"). For purposes of computing such units, natural gas is converted to equivalent barrels of oil using a conversion factor of six thousand cubic feet to one barrel of oil. Boe's may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet of natural gas to one barrel of oil (i.e., 6 Mcf: 1 bbl) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Readers should be aware that historical results are not necessarily indicative of future performance.

Advisory Regarding Forward-Looking Information and Statements

This press release contains certain forward-looking information and forward-looking statements within the meaning of applicable securities laws (collectively, "forward-looking information"). The use of any of the words "expect", "anticipate", "continue", "estimate", "guidance", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information.

The forward-looking information contained in this press release reflects several material factors and expectations and assumptions of Arcan including, without limitation: the timing of receipt of regulatory approvals, including the TSX Venture Exchange, and assumptions as to the continued business operations of Arcan. Arcan believes the material factors, expectations and assumptions reflected in the forward-looking information are reasonable at this time but no assurance can be given that these factors, expectations and assumptions will prove to be correct. The forward-looking information included in this press release is not a guarantee of future performance and should not be unduly relied upon. Such information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information including, without limitation: unforeseen changes in the business or operations of Arcan, unforeseen delays in preparing materials for filing and inability to obtain necessary regulatory approvals in the time assumed.

The forward-looking information contained in this press release is made as of the date hereof, and Arcan undertakes no obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required pursuant to applicable securities laws.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Arcan Resources Ltd.
    Ed Gilmet
    President and Chief Executive Officer
    (403) 262-0321
    or
    Arcan Resources Ltd.
    Douglas Penner
    Vice President, Finance and Chief Financial Officer
    (403) 262-0321
    or
    Arcan Resources Ltd.
    Suite 3200, 450 - 1st Street SW
    Calgary, Alberta T2P 5H1
    info@arcanres.com
    www.arcanres.com