Arcan Resources Ltd. is a long life, light, sweet oil producer developing a focused resource play

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. Since its inception, Arcan has focused on production while building infrastructure for long term sustainability. Arcan has implemented and continues to expand water flood enhanced oil recovery throughout its asset base. Arcan currently holds an extensive multi-year inventory of low risk drilling opportunities targeting 40 API sweet crude.

Arcan’s Proposed Transaction to Recapitalize Its Covertible Debentures

On December 19th, 2014 Arcan announced a restructuring arrangement in which an exchange of Arcan’s $86.25 million 6.25% convertible unsecured subordinated debentures due February 28, 2016 and $85.0 million 6.50% convertible unsecured subordinated debentures due October 31, 2018 into equity at an exchange price of $0.15 per share, representing approximately 87.5% of the post-Exchange common shares in the capital of Arcan.  For a summary of the proposed restructuring transaction, see here:

Letter from CEO

Press Release

The transactions as proposed carries numerous advantages for Arcan and its stakeholders, including:

  • Simplifies Arcan’s capital structure to only common shares and bank debt by retiring approximately $171.25 million of net debt;
  • Reduces Arcan’s annual cash interest and financing expenses by approximately $10.9 million;
  • Provides increased certainty to the capital markets and Arcan’s banking syndicate with respect to Arcan’s capital structure

For a more detailed discussion on the advantages of the recapitalization transaction as proposed, see here:

Reasons for the Transaction

For all pertinent documentation regarding the recapitalization transaction, see here:

Information Circular
Notice of Meeting
NI54-101 Certification
Letter of Transmittal 2016 Debentures
Letter of Transmittal 2018 Debentures
Form of Proxy 2016 Debentures
Form of Proxy 2018 Debentures