Glad to see Arcan finally open up and reveal exactly what has been and will be going on. Economics on primary recovery isn't fantastic unless I'm missing something. Seems like they have a much better grasp on the geology now then they did in the past. Farm out info looks very encouraging and Petrobakken is an excellent partner. PBN has many flaws as a company but technically I have always felt they were extremely competent. The addition of what seems to be a successful and expanding waterflood program should increase the primary economics considerably. I hope they drill or convert more injectors during 2013 then the three I noticed in the presentation. I'm also intrigued by the prospect of refracing the cluster of low type curve wells in Ethel. Between that and gains from expanding the flood they should be able to expand production cheaply and efficiently.
If debt is now around 120 million they could potentially through further divestments or selling Stimsol get it down to 100 million which would be great. My confidence in Arcan has not been rewarded to this point, at all, and has made me feel quite foolish at times but it looks like they may have turned the corner.
Now all we need is someone who is willing to spend 344 million to fully flood Ethel and we are off to the races. Haha.