Financial Performance and Potential

Balancing Risk & Reward

Arcan is a high-growth junior producer with a large prospect inventory and an experienced, technically adept management team. The Company has the prospect inventory to carry out an aggressive capital program, generating significant growth over our forecast horizon.

Arcan’s capital program will continue to focus on growth through exploration and development in its three core operating areas.

Follow-up drilling at Hamburg continued to define the aerial extent of a significant new pool discovery. Several further development wells are planned and the waterflood is expected to add considerably to the life and value of our asset. Arcan has a large inventory of prospects in this area and will continue to drill impact exploration opportunities in addition to ongoing development.

At McLeod, in this natural gas weighted area and our team has a long history of exploratory drilling in this area for Cretaceous / Jurrasic aged strata as well as much deeper targets.

At Deer Mountain, Arcan is focused on drilling patterns in the unit and maximizing the value of the proprietary 3D seismic. Since 2005, Arcan has added a new oil battery, full water-injection facility and launched a water injection scheme.  In 2008, Arcan acquired interests (30% - 100%) in over 50 sections of land to the south and immidiately offsetting the unit.  In October, 2008 Arcan drilled its first well on these lands and is planning additional drilling, seismic and the extention of production and injection facilities to develop these lands.

Arcan has formed a Devonian team to target higher impact exploration targets. Arcan’s average daily production is expected to increase from 581 boe per day for the twelve months ended December 31, 2006 to 1,178 Boe/d in 2007 and approximately 1,500 boe per day in 2008.  Arcan continues to await approval on its Hamburg pool to allow production rates to lift from the resticted 100 boe per day per well.

Our Stock

ARN - Arcan Resources Ltd. is a publicly traded company on the TSX Venture exchange.