Overview

Arcan Resources Ltd. ("Arcan") is engaged in the exploration for, and the development and production of, petroleum and natural gas in Western Canada. Arcan was incorporated on October 9, 2003 and conducted operations as a private corporation until January 1, 2007. On January 1, 2007 Arcan amalgamated with Desco Energy Ltd. The amalgamation resulted in Arcan becoming a public corporation and a reporting issuer, with its common shares commencing trading on the TSX Venture Exchange under the symbol 'ARN' on January 9, 2007.

Arcan operates in three core operating areas, (Swan Hills, Hamburg, and McLeod) however, the focus for the past few years has shifted to light oil development and almost exclusively to the Beaverhill Lake play at Swan Hills. Arcan has built a land position of approximately 171 net sections at Swan Hills, and as of December 2009 began applying horizontal multi-frac technology to the play. Arcan has drilled 55 horizontal wells in the Swan Hills trend to date and anticipates drilling up to another 40 wells in 2012 with a total well inventory of over 400 locations.

The quality of Arcan's asset base ranks favorably within the context of its peers in our small cap universe.Arcan is a high growth junior producer with a large prospected inventory and an experienced, technically adept management team. The company has the prospect inventory to carry out an aggressive capital program, generating significant growth.

Our Goals

Primary to Arcan is the best long term rate of return for our investors. We strive to exceed our investment guideline 'one dollar put into the ground should yield at least two dollars out'. We measure this with a targeted recycle ratio of over 2.0. We are confident that our existing assets and well balanced prospect inventory puts the Company in position to continue to be one of the best names in the small cap coverage universe for 2012 and beyond.

Corporate Strategy

Solidify our identity as the leading junior oil weighted resource player on the Swan Hills trend.

Operations Strategy

Arcan's strategy is to drill wells, increase production, and prove-up reserves on our land base. We intend to utilize our infrastructure, balance drilling locations to capture reserves and maximize land continuations, production and waterflood patterns for enhanced recovery.

Financial Strategy

Maintain a solid balance sheet and financial stability.

Our goal, in its simplest form, is to add net asset value per share. Arcan has patiently accumulated the largest and best undeveloped acreage holdings in the Swan Hills platform trend area and is actively executing its development plan with precision.