CALGARY, ALBERTA--(Marketwire -09/05/12)- Arcan Resources Ltd. (ARN.V) ("Arcan" or the "Corporation") announces that it has sold its assets located in the Hamburg area of Northern Alberta (the "Assets") for cash consideration of $12.1 million, subject to normal closing adjustments.
Production from the Assets in the second quarter of 2012 was approximately 237 barrels of oil equivalent ("boe") per day, comprised of 89 percent oil. The proceeds from the disposition of the Assets will be used to reduce debt under Arcan's credit facility.
About Arcan Resources Ltd.
Arcan Resources Ltd. is an Alberta, Canada corporation that is engaged in the production, development, exploration and acquisition of petroleum and natural gas located in Canada's Western Sedimentary Basin.
Barrels 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 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 "estimates", ''expects'', ''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 use of proceeds from the sale of the Assets.
The forward-looking information and statements contained in this press release, including but not limited to the estimates of 2012 annual production, reflect several material factors and expectations and assumptions of Arcan including, without limitation, that the sale of the Assets will close in accordance with Arcan's expectations and that the funds received in relation thereto can be applied against Arcan's credit facility.
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: inaccurate assumptions relating to the closing of the sale of the Assets and the ability to use the funds received to reduce debt under Arcan's credit facility; 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.
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.