Press release from Marketwire
Arcan's Ethel Pipeline Fully Operational
Thursday, June 07, 2012
Arcan's Ethel Pipeline Fully Operational06:00 EDT Thursday, June 07, 2012CALGARY, ALBERTA--(Marketwire - June 7, 2012) - Arcan Resources Ltd. (TSX VENTURE:ARN) ("Arcan" or the "Corporation") has completed the start-up of its recently constructed oil gathering pipeline in the Ethel area. This new pipeline will pump Arcan's production from 30 horizontal wells in the Ethel field for processing at the Deer Mountain Unit #2 facility. In addition, Pembina Pipeline Corporation ("Pembina") has completed construction on the new Moosehorn pipeline, replacing an older line that had been operating at reduced capacity since it was impacted by severe weather in late 2011. This new infrastructure will enable Arcan to deliver its entire production volume to the Pembina sales terminal via pipeline. "The start-up of our Ethel pipeline is a significant milestone for Arcan's field operations," said Arcan's President, Doug Penner. "Together with Pembina's Moosehorn project, these two pipeline systems will contribute to lower operating costs and reduced downtime across both the Deer Mountain Unit and Ethel. The new infrastructure provides the foundation for full field development of this long-life, light oil asset." Arcan remains on track to meet its operational objectives for 2012. The Corporation expects second quarter production to be approximately 5,600 barrels of oil equivalent per day and third and fourth quarter production to average over 6,000 barrels of oil equivalent per day. Arcan has recently finished drilling the last well on a four-well pad in the northwest portion of its Ethel development, which will be completed and tied in by the end of the third quarter of 2012. Arcan plans to target higher impact wells using a single drilling rig for the remainder of the year, which is consistent with its strategic direction of bringing capital spending into better balance with cash flow for the second half of 2012. Upcoming Conference Presentation Arcan is scheduled to present at the Stifel Nicolaus Energy Conference taking place in Montreal at the Hotel Omni Mont-Royal on June 7, 2012. Investors are invited to listen to the live webcast at 9:05 a.m. ET via http://www.veracast.com/webcasts/stifel/energy2012/41102112.cfm. An archive of the webcast will be available for a 30 day period following the conference. Annual and Special Meeting Arcan has set its annual and special meeting to be held at 3:00 p.m. MT on Thursday, June 21, 2012. The event will take place in the McMurray Room of the Calgary Petroleum Club at 319 - 5th Avenue SW, Calgary, Alberta. About Arcan Resources Ltd. 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.Legal AdvisoriesBarrels of oil equivalent ("BOE") may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet ("Mcf") of natural gas to one barrel ("bbl") of oil is based on an energy equivalency conversion primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. In addition, given that the value ratio based on the current price of oil as compared to natural gas is significantly different from the energy equivalent of six to one, utilizing a BOE conversion ratio of 6 Mcf: 1 bbl would be misleading as an indication of value. Forward-Looking Information and StatementsThis press release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "will", "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 pertaining to, among other things, the following: 2012 anticipated production; anticipated timing of the completion and tie-in of Arcan's last well on its four-well pad in the northwest portion of the Ethel Unit; Arcan's expectations respecting its newly completed oil gathering pipeline in the Ethel area and the Moosehorn pipeline; expectations respecting the impact of pipeline infrastructure on operating costs, downtime and Arcan's future development; Arcan's expectations respecting its growth and activities throughout the remainder of 2012; Arcan's ability to execute on the remainder of its 2012 business plans and strategic direction; future growth including development, exploration, acquisition, construction and operational activities and related expenditures. 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 accuracy of current horizontal production data, historical well production and waterflood results; the general continuance of current or, where applicable, assumed industry conditions; continuity of reservoir conditions across Arcan's Swan Hills land base and its Ethel oil pool; availability of debt and/or equity sources to fund Arcan's capital and operating requirements as needed; the continuance of existing and, in certain circumstances, proposed tax and royalty regimes; the accuracy of the estimates of Arcan's reserve volumes; and certain commodity price and other cost assumptions and estimates. 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: for reasons currently unanticipated, Arcan's production rates may not reach the levels currently expected; the application and modification of horizontal, multi-stage fracture technologies may not have the impact currently anticipated by Arcan; the future drilling locations identified by Arcan may prove to be unsuitable or unavailable and drilling on the locations identified may not occur; water injection at additional sites in the Deer Mountain Unit #2 or in the Ethel field may not have the impact on production currently anticipated by Arcan, the operation of Arcan's oil gathering pipeline and the Moosehorn pipeline may not have the impact on operating costs, downtime and future development currently anticipated by Arcan and there may be interruptions of service in the future; Arcan's capital spending and operational plans for 2012 may not be completed in the timelines anticipated, in the manner anticipated or at all and the execution of such plans may not have the results currently anticipated by Arcan; changes in tax or environmental laws or royalty rates; increased debt levels or debt service requirements; inaccurate estimation of Arcan's oil and gas reserves volumes; limited, unfavourable or no access to debt or equity capital markets; increased costs and expenses; the impact of competitors; changes in commodity prices; 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, 2011, copies of which are 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.FOR FURTHER INFORMATION PLEASE CONTACT: Ed GilmetArcan Resources Ltd.Chief Executive Officeregilmet@arcanres.comORDouglas PennerArcan Resources Ltd.Presidentdpenner@arcanres.comORSuite 2500, 308 - 4th Avenue S.W.Arcan Resources Ltd.Calgary, AB T2P 0H7(403) 262-0321Neither 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.