Arcan Resources Ltd.
TSX VENTURE : ARN

Arcan Resources Ltd.

February 14, 2011 09:19 ET

Arcan Announces First Dual Leg Horizontal Multi-Stage Fractured Well Tests Over 1,100 Boe Per Day

CALGARY, ALBERTA--(Marketwire - Feb. 14, 2011) -

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Arcan Resources Ltd. (TSX VENTURE:ARN) ("Arcan") is pleased to report initial production testing results of approximately 1,100 barrels of oil equivalent ("BOE") per day at Arcan's first dual leg horizontal multi-stage fractured well in its Beaverhill Lake Swan Hills reef development program.

Arcan's sixteenth horizontal multi-stage fractured well ("Well 16") at 13- 30 -68-8W5 (surface location) 16- 30 -68-8W5 and 07- 30 -68-8W5 (bottom hole locations) was drilled in the Beaverhill Lake Swan Hills carbonate reservoir to a vertical depth of 2,450 meters with two horizontal legs of approximately 1,000 meters each. Well 16 is Arcan's first dual leg horizontal multi-stage fractured well and qualifies for a 5% crown royalty on the first 100,000 barrels of oil produced. Arcan has an 81% working interest in Well 16 which was fractured using a total of 18 separate hydrochloric acid fracture stimulation treatments. Well 16 was production tested over a continuous nine day period and following production testing Well 16 averaged in excess of 1,100 BOE per day of 40˚ API light sweet oil and associated sweet natural gas. Well 16 will be equipped with a pump jack and tied into Arcan-operated pipeline infrastructure and production facilities in due course. 

Arcan's seventeenth well, the Ethel (4-15) 16-10-67-08W5 well, was fractured on January 22, 2011 and Arcan anticipates that an electric submersible pump will be installed shortly to test the well. Arcan currently has two wells in Ethel and one well in the Deer Mountain Unit Number 2 awaiting completion and has three drilling rigs currently drilling on its Beaverhill Lake Swan Hills land base.

About Arcan

Arcan Resources Ltd. is an Alberta, Canada corporation that is principally engaged in the exploration, development and acquisition of petroleum and natural gas located in Canada's Western Sedimentary Basin. Arcan has 88,090,446 common shares and 8,470,500 stock options outstanding.

Readers should be aware that historical results are not necessarily indicative of future performance.

BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 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.

Advisory Regarding Forward-Looking Information and Statements

This press release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "estimate", "will", "should", "believe", "plans" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this press release contains forward-looking information and statements in respect of Arcan's intentions to equip and tie in Well 16.

The forward-looking information and statements contained in this press release reflect several material factors and expectations and assumptions of Arcan including, without limitation: that Arcan will continue to conduct its operations in a manner consistent with past operations; the general continuance of current or, where applicable, assumed industry conditions; availability of funds to meet Arcan's capital and operating requirements as needed and on terms acceptable to Arcan; the continuance of existing and, in certain circumstances, proposed tax and royalty regimes; the accuracy of the estimates of Arcan's reserve volumes and production testing results; and certain commodity price and other cost assumptions. Arcan believes the material factors, expectations and assumptions reflected in the forward-looking information and statements 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 and statements included in this press release are not guarantees of future performance and should not be unduly relied upon. Such information and statements involve 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 or statements including, without limitation: changes in commodity prices; unanticipated operating results or production declines; unanticipated problems or delays in Arcan's ability to equip and tie in Well 16; changes in tax or environmental laws or royalty rates; increased debt levels or debt services requirements; inaccuracies in the estimation of Arcan's oil and gas reserves volumes; inaccuracies in the production testing process or results; increased costs and expenses; the impact of competitors; reliance on industry partners; and certain other risks detailed from time to time in Arcan's public disclosure documents including, without limitation, those risks identified in this press release, and in Arcan's Annual Information Form for the year ended December 31, 2009, a copy of which is available on Arcan's SEDAR profile at www.sedar.com.

The forward-looking information and statements contained in this press release speak only as of the date of this press release, and Arcan does not assume any obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable laws.

Neither 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
    Chief Executive Officer and President
    (403) 262-0321
    egilmet@arcanres.com
    or
    Arcan Resources Ltd.
    Douglas Penner
    Chief Financial Officer and Vice President, Finance
    (403) 262-0321
    dpenner@arcanres.com
    or
    Arcan Resources Ltd.
    Suite 3200, 450 - 1st Street S.W.
    Calgary, AB T2P 5H1