Haywood Securities Updates Buy Recommendation for Arcan Resources (TSXV:ARN) - Video Summary Posted on www.InvestmentPitch.com
(Thomson Reuters ONE) -
Vancouver, British Columbia, September 21, 2011 - Haywood Securities analyst
Geoff Ready has issued an updated research report for Arcan Resources
(TSXV:ARN), maintaining his sector outperform rating and 12 month target price
of $9.25 per share.
InvestmentPitch.com has produced a "video news alert", highlighting the Haywood
Securities research report. If this link is not enabled, please visit
www.InvestmentPitch.com and enter "Arcan" in the search box.
The report follows the September 19th announcement by Arcan Resources of a $135
million bought deal. The syndicate for the offering of 9.2 million common shares
priced at $5.45 is being led by RBC Capital Markets as sole bookrunner and co-
led by Haywood Securities. The syndicate for the offering of $85 million of
convertible debentures is also being led by RBC Capital Markets and co-led by
Scotia Capital. The conversion price on the debentures is $8.75 per share.
Closing of the offer is expected to occur on or about October 7, 2011.
Proceeds of this offering will be used to accelerate the company's exploitation
of its light oil resource play in Swan Hills, Alberta. Arcan has recently
increased its drilling program to 3 rigs and has plans to add a 4(th) rig
beginning in December. These rigs will have the ability to drill approximately
6 Beaverhill Lake horizontal wells per month.
Geoff Ready believes this is a strong step to proving up value on its land base
of 150+ net sections where management has identified over 400 net horizontal
well locations. He has revised his 2011 and 2012 estimates based on the
financing and projected increase in 2012 capital spending.
Average production in 2012 has now been modeled to increase by 13% to 8,403
barrel of oil equivalent per day (92% oil weighted), based on a $305 million
capital program. Cash flow per share projection will remain constant at $1.34
per share as the increase in actual cash flow is offset by the dilution of the
equity issue.
For a more information on Arcan Resources please visit their website at
www.arcanresources.com , phone 403-262-0321 or email egilmet(at)arcanres.com.
For a copy of the research report, please contact your nearest Haywood
Securities office. Their website is www.haywood.com.
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Datum: 21.09.2011 - 19:57 Uhr
Sprache: Deutsch
News-ID 68451
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