Arcan poised for next leg up...
ARCAN RESOURCES LTD. ANNOUNCES SYNDICATED CREDIT FACILITIES INCREASED 43% FROM $70 MILLION TO $100 MILLION
CALGARY, Alberta, Canada, September 30, 2010 – Arcan Resources Ltd. (TSXV – "ARN") ("Arcan") is pleased to announce that it has completed amendments to its syndicated credit facilities to increase the amount available under the facilities by 43% from $70 million to $100 million.
The increased credit facilities consist of a $90 million syndicated revolving credit facility and a $10 million revolving operating facility. The credit facilities are secured by a charge on all of Arcan's assets and include customary positive and negative covenants by Arcan in favour of the lenders. This syndicated credit facility is lead by the ATB Financial and includes the National Bank of Canada.
Arcan is very pleased by the early well performance of the 12 successful horizontal wells drilled to date. Already these wells have delivered strong economic results which were recognized by Arcan’s lending syndicate in increasing the credit line. Performance to date has increased Arcan’s confidence in the repeatability of the play. Management feels that the newly increased bank lines provide Arcan with significant financial and operational flexibility creating a catalyst for continued drilling and production growth. To that end, Arcan anticipates it will commence the next phase of its development drilling program early in Q4 2010.
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. Arcan has 75,407,904 common shares, 128,500 warrants, and 7,285,167 stock options outstanding |
