Arcan Resources Ltd

Arcan is engaged in the production, development, exploration and acquisition of light, sweet oil from the Western Canadian Sedimentary Basin. The Corporation is targeting the Devonian carbonate reef structures of the Beaverhill Lake Group, located in the Swan Hills area of north central Alberta, where it holds a large, contiguous land block. Production has steadily grown and infrastructure is now in place for successful long-term development of the asset base.

Arcan estimates that there are approximately 600 million barrels of discovered petroleum initially-in-place (DPIIP) on its land base. Arcan expects it could achieve a recovery factor of up to 40% using proven waterflood recovery techniques and horizontal multi-stage fracturing technology. As of December 31, 2014, Arcan’s independent qualified reserve auditor (GLJ Petroleum Consultants Ltd.) has booked 35.0 million barrels of oil equivalent of proved and probable reserves, which represents approximately 8% of the estimated DPIIP.

Arcan strives to maintain a high state of readiness with numerous surveyed locations and licences in hand. Altogether, the Corporation has a portfolio of 285 identified horizontal drilling locations, of which approximately 117 are recognized as low-risk prospects capable of meeting or exceeding current type curve expectations. Extensive pipeline infrastructure has been constructed in core areas for long-term sustainable production and to support future development operations.