ARCAN’s Prospective Future Performance

After averaging 1,178 Boe/d in 2007, Arcan is estimating 2008 average production of 1,500 Boe/d. Directional allocation of capital outlay for 2008 is 20% toward McLeod, and 40% each at Deer Mountain and Hamburg.

The quality of Arcan’s asset base ranks favourably within the context of its peers in our small cap universe. Management has put together a balanced portfolio of opportunities, ranging from low risk development/optimization of the Deer Mountain Unit #2 to the high impact nature of the Slave Point play in the Hamburg region. Arcan has a large portflio of development drilling supported by infrastructure we already built and own. Our cash flow base has been firmly established to patiently fuel what is ultimately expected to be an active exploration program.