Arcan Shows some Good Results at Ethel
In other news last night, Arcan came out with an operational update that showed some excellent IP30 results. The news release detailed the following:
- Two wells drilled at Ethel (1-04 and 5-35) showed IP30 of 732 and 681 boe/d. Ethel was thought by some to have thinning net pay, and so there was some concern that results would be poorer then the Deer Mountain unit wells. So far those folks have been wrong.
- Arcan provided a comparison of the two new Ethel wells with another older Ethel well drilled last year (10-27). The two new wells highlighted in this NR had about double the cumulative production that the 10-27 had in the first 30 days. The wells are quite close to one another, so this could presumably be attributed to the new frac design that Arcan is using. It is good news that the new fracs are making such a difference.
- The implementation of waterflood is now scheduled for Q4. This had previously always been somewhat vaguely scheduled in 2012. Great news that they can bring on waterflood sooner.
- Current production is 4,400boe/d. This is up 500 boe/d from their last news release in early June.
In all it was an all good news report. Good for Arcan, and good for Second Wave by association. I am glad that Arcan is my largest position (by far) and that I have been adding to Second Wave. I may add more to Second Wave this morning if it opens flat on the news.