Arcan Resources Ltd. (TSX VENTURE:ARN) ("Arcan" or the "Corporation") announces
its financial and operating results for the three and six-month periods ended
June 30, 2013. Results on key metrics are in line with earlier guidance. Given
the current economic climate and the state of the capital markets, Arcan plans
to reduce capital spending and evaluate asset sales for the second half of 2013
in order to pay down debt and retain financial flexibility.

"Our production over the past four quarters has remained stable in spite of
constrained capital spending," said Chief Executive Officer Terry McCoy. "Our
continuing efforts to improve our drilling and completion efficiencies and
reduce operating costs allowed us to deliver solid results in the second
quarter, in spite of typical second quarter weather-related challenges. We have
now funded our drilling activity from cash flows and asset dispositions over the
last twelve months and anticipate that will continue. We are reducing our
planned 2013 capital spending from $52.1 million to $40.8 million and are
looking at options such as asset sales or joint ventures as debt reduction is
now our top priority. The impact of reduced capital is the expected reduction in
production targets to an annual average of 3,800 to 4,000 BOE per day for 2013."

                                       Three Months Ended  Six Months Ended
                                         June 30, June 30, June 30, June 30,
                                            2013     2012     2013     2012
Financials ($000s except per share                                         
Petroleum and natural gas revenue         32,507   37,662   63,707   75,594
Pumping and stimulation services                                           
 revenue                                     779    1,283    1,766    4,085
Cash flow from operating activities       13,108   16,476   24,116   33,502
Funds from operations(1)                  12,781   14,565   22,481   33,010
  Per share basic and diluted(1)(3)         0.13     0.15     0.23     0.34
Net income (loss)                          1,058    8,269   (1,908)   5,683
  Per share basic and diluted(3)            0.01     0.08    (0.02)    0.06
Capital expenditures, net - cash           8,296   46,354   25,384  152,430
Total assets                             616,869  681,280  616,869  681,280
Total liabilities                        368,930  379,260  368,930  379,260
Debenture face value                     171,250  171,250  171,250  171,250
Shareholders' equity                     247,939  302,020  247,939  302,020
Bank loan                                164,471  139,604  164,471  139,604
Net debt and working capital(4)          317,953  292,817  317,953  292,817
  Crude oil and NGLs (barrels ("bbls")                                     
   per day)                                4,004    5,173    4,041    4,978
  Natural gas (thousand cubic feet                                         
   ("Mcf") per day)                          401      487      256      520
  Barrel of oil equivalent ("BOE") per                                     
   day(2)                                  4,071    5,254    4,084    5,065
Average realized price:                                                    
  Crude oil and NGLs ($ per bbl)           88.85    79.82    86.88    83.17
  Natural gas ($ per Mcf)                   3.68     1.96     3.30     2.58
  Combined price per BOE ($ per BOE)       87.76    78.77    86.18    82.01
                                       Three Months Ended  Six Months Ended
                                         June 30, June 30, June 30, June 30,
                                            2013     2012     2013     2012
Netback ($ per BOE)(1)                                                     
Petroleum and natural gas sales            87.76    78.77    86.18    82.01
Pumping and stimulation services                                           
 revenue                                    2.10     2.68     2.39     4.43
Royalties                                 (17.48)   (9.54)  (15.56)  (11.50)
Production and operating expenses         (16.56)  (21.61)  (17.04)  (18.89)
Cost of sales for pumping and                                              
 stimulation services                      (5.66)   (2.74)   (5.46)   (4.09)
Consolidated operating netback ($ per                                      
 BOE)(1)                                   50.16    47.56    50.51    51.96
Realized economic hedging gains                                            
 (losses) - cash                            0.90     0.20     1.20    (1.04)
Cash general and administrative ("G&A")                                    
 expense                                   (7.58)   (8.72)   (6.64)   (7.12)
Finance expenses - cash                   (12.22)   (7.54)  (11.97)   (7.22)
Corporate netback(1)                       31.26    31.50    33.10    36.58
Common Shares (000s)                                                       
Shares outstanding                        97,860   97,855   97,860   97,855
  Weighted average - basic                97,860   97,821   97,860   97,797
  Weighted average - diluted              97,860   98,270   97,860   98,428
(1)    The reader is referred to the section "Non-IFRS Measurements".      
(2)    The reader is referred to the section "Legal Advisories".           
(3)    Basic and diluted weighted average shares are the same. Stock       
       options and debentures were anti-dilutive.                          
(4)    Net debt and working capital is calculated by subtracting the       
       current liabilities (excluding bank debt), bank debt, and           
       convertible debentures from its current assets.                     


--  Funds from operations increased by 32 percent to $12.8 million during
    the second quarter of 2013 from $9.7 million in the first quarter of the
    year. Year-over-year, second quarter funds from operations declined by
    12 percent from the second quarter of 2012 in spite of an 82 percent
    drop in capital spending in the same period. 

--  Reduced capital expenditures by 51 percent in the second quarter of 2013
    to $8.3 million from $17.1 million in the first quarter of 2013 due to
    decreased drilling, completions and work-over spending. Capital
    expenditures during the second quarter of 2013 were significantly lower
    than the second quarter of 2012 when Arcan invested $46.4 million on
    drilling and completions and infrastructure improvements. 

--  Cash G&A expenses increased to $2.8 million in the second quarter of
    2013, from $2.1 million in the first quarter of 2013 due to bank renewal
    fees and one-time costs associated with closing down StimSol Canada
    Inc.'s pumping and stimulation division. However, cash G&A expenses have
    fallen significantly from $4.2 million in the second quarter of 2012 as
    Arcan has focused on various cost cutting measures throughout the
    organization over the past year. 

--  Arcan had drawn $164.5 million on its credit facility of $190.0 million
    as at the end of the second quarter of 2013. Arcan intends to fund
    future expenditures from cash flow and focus on debt reduction through
    the remainder of 2013. 

--  Arcan continued to build on its hedging program in the quarter and has
    secured approximately 60 percent of its expected cash flow for the next
    three years. 


--  Production averaged 4,071 BOE per day during the second quarter of 2013,
    down one percent from the previous quarter due to expected seasonal
    factors such as spring break-up and wet weather hindering access to well

--  Reduced production and operating expenses by five percent to $16.56 per
    BOE in the second quarter of 2013 from $17.52 per BOE in the first
    quarter of 2013. This was also a continued improvement from $21.61 per
    BOE in the second quarter of 2012 due to the ongoing implementation of
    operating efficiencies in the field. 

--  Continued waterflood response in Deer Mountain Unit #2 observed through
    a flat production profile from August 2012 through the second quarter of
    2013 with no drilling activity. The waterflood in Ethel was expanded to
    include two new patterns with results expected in the fourth quarter of

--  Arcan has updated its Deer Mountain and Ethel simulation model to assist
    in further monitoring, optimizing and predicting waterflood performance.

--  Drilling costs continue to decline following the careful and disciplined
    review of drilling and completions operations earlier in 2013. Arcan
    continues to implement improvements to various aspects of its field
    operations with the goal of drilling and completing wells at costs
    between $4.5 million to $5.0 million. 

--  Advanced the Ethel pipeline corridor (consisting of natural gas, oil and
    effluent lines) with the natural gas sales pipeline commencing
    operations during the quarter. As a result, natural gas produced from
    the tied in oil wells in Ethel is now conserved. The oil pipeline is
    currently waiting to be connected into a third-party sales point. 


Arcan holds a multi-year inventory of low-risk drilling opportunities targeting
light sweet oil in the Swan Hills area. The Corporation recently received
approvals for waterflood expansion of the Ethel waterflood scheme. Ongoing
waterflood operations in the Deer Mountain Unit #2 and Ethel areas continued to
demonstrate expected waterflood response during the second quarter of 2013.

In order to pay down debt, Arcan has reduced its planned 2013 capital budget
from $52.1 million to $40.8 million. The Corporation plans to drill two wells in
the third quarter (1.2 net wells, one well is 100 percent Arcan and the other
well is a joint venture in which Arcan pays 20 percent of the costs for 48
percent of the production). With the lower capital spending Arcan also expects
lower production for the year, now anticipating full-year production to average
3,800 to 4,000 BOE per day.

Arcan is considering further joint ventures, farm-outs and similar arrangements
in order to support the Corporation's strategy of operating within cash flow
while creating shareholder value. Due to the significant hydrocarbon potential
of our land base, sharing development costs with third parties enables Arcan to
advance project development while reducing the required level of capital

Arcan is also considering asset divestitures, including a potential sale of the
Deer Mountain Unit #2 asset as it is a mature asset with a waterflood already
implemented, as compared to the range of development stages of the other areas
in Arcan's asset base.

"Reducing debt is paramount to Arcan," said President Doug Penner. "Although
lower capital spending will impact production in the near term, our longer term
vision is to ensure the Corporation has the stable financial position to be able
to realize over time the full value of our long-life, high-quality light oil
potential over our entire land base. We continue to review alternatives,
including monetizing assets, that would strengthen the valuation of Arcan and
provide access to the capital required to continue to develop our Swan Hills


Arcan has filed its unaudited condensed interim consolidated financial
statements and the accompanying management's discussion and analysis for the
three and six-month periods ended June 30, 2013, with the Canadian securities
regulatory authorities. These filings are available for review at

About Arcan Resources Ltd.

Arcan Resources Ltd. is an Alberta, Canada corporation that is principally
engaged in the exploration and development of light oil resources located in the
Western Canadian Sedimentary Basin.

Legal Advisories

BOEs may be misleading, particularly if used in isolation. The calculation of
BOEs is based on a conversion ratio of six Mcf of natural gas to one bbl of oil
based on an energy equivalency conversion primarily applicable at the burner tip
and does not represent a value equivalency at the wellhead. In addition, given
that the value ratio based on the current price of oil as compared to natural
gas is significantly different from six to one, utilizing a BOE conversion ratio
of six Mcf to one bbl would be misleading as an indication of value.

Additional information about the Corporation, including the Corporation's AIF
for the year ended December 31, 2012, is available under Arcan's profile on

Non-IFRS Measurements

Arcan's financial statements have been prepared in accordance with IFRS.

Readers are cautioned that this news release contains the term "funds from
operations", which should not be considered an alternative to, or more
meaningful than, "cash provided by operating activities" or "net earnings" as
determined in accordance with IFRS as an indicator of Arcan's performance. Arcan
also presents "funds from operations per share", whereby funds from operations
are divided by the basic and diluted weighted average number of common shares of
Arcan (each, a "share") outstanding to determine per share amounts. Arcan also
presents "net debt and working capital" which should not be considered an
alternative to, or more meaningful than, "current liabilities" or "working
capital". Net debt and working capital is calculated by subtracting the current
liabilities (excluding bank debt), bank debt, and convertible debentures from
its current assets.

Operating netbacks are presented on an operating segment and consolidated basis.
"Operating netbacks" for the exploration and production segment, or "exploration
and production netbacks", represent Arcan's petroleum and natural gas revenue,
less royalties and production and operating expenses. "Operating netbacks" for
the pumping and stimulation segment, or "pumping and stimulation operating
netbacks", represent pumping and stimulation services revenue, less cost of
sales for pumping and stimulation services. "Consolidated operating netbacks"
represent the sum of the operating netbacks for the exploration and production
and pumping and stimulation segments. "Corporate netbacks" represent Arcan's
consolidated operating netback, plus other revenue, plus or minus realized
economic hedging gains or losses, less cash general and administrative expenses
("Cash G&A") and cash interest expenses in order to determine the amount of
funds generated by production. Operating and corporate netbacks have been
presented on a per barrel of oil equivalent ("BOE") basis, as well.

The measures referenced above do not have any standardized meaning prescribed by
IFRS and therefore may not be comparable to similar measures presented by other
companies. Management believes that funds from operations, net debt and working
capital and both operating and corporate netbacks are useful supplemental
measures as they indicate Arcan's ability to fund future growth through capital
investment and/or to repay debt. These measures have been described and
presented in this news release in order to provide shareholders and potential
investors with additional information regarding Arcan's liquidity and its
ability to generate funds to finance its operations. Please see the section
"Results of Operations - Netbacks" for reconciliations between both operating
netbacks and corporate netbacks to revenue.

Arcan determines funds from operations as cash flow from operating activities
before changes in non-cash working capital as follows:

Funds from Operations                                                      
                                       Three Months Ended  Six Months Ended
                                         June 30, June 30, June 30, June 30,
($000s)                                     2013     2012     2013     2012
Cash flow from operating activities                                        
 (per IFRS)                               13,108   16,476   24,116   33,502
Change in non-cash working capital and                                     
 RSU's                                      (327)  (1,911)  (1,635)    (492)
Funds from operations                     12,781   14,565   22,481   33,010

Arcan determines net debt and working capital as follows:

Net debt and working capital                                               
                                                                As At      
                                                           June 30, June 30,
($000s)                                                       2013     2012
Current assets                                              20,136   45,331
Current liabilities (excluding bank debt and convertible                   
 debentures)                                               (26,721) (57,157)
Bank loan                                                 (164,471)(139,604)
Debentures                                                (146,897)(141,387)
Net debt and working capital                              (317,953)(292,817)

Forward-Looking Information and Statements

This news release contains certain forward-looking information and statements
within the meaning of applicable securities laws. The use of any of the words
''expect'', ''anticipate'', ''continue'', "considering", "would", ''estimate'',
''guidance'', ''objective'', ''ongoing'', ''may'', ''will'', ''project'',
''should'', ''believe'', ''plans'', ''intends'', "possible" and similar
expressions are intended to identify forward-looking information or statements.
In particular, but without limiting the foregoing, this news release contains
forward-looking information and statements pertaining to, among other things,
the following: anticipated commodity prices for both oil and natural gas; the
potential of significant asset divestitures, including a sale of the core Deer
Mountain Unit #2 asset; the ability of Arcan to pay down debt and retain
financial flexibility; the timing, method and results of drilling and waterflood
operations; anticipated production volumes; impact of and estimated waterflood
recoveries; ability of Arcan to spend capital below operating cash flow during
the balance of 2013 and on a going-forward basis; future revenues; future
liquidity and financial capacity and resources including the availability of
such resources; Arcan's expected cash flows; results of operations and financial
ratios; the volume and product mix of Arcan's oil and gas production; matters
relating to the joint venture agreement.; Arcan's risk management programs;
Arcan's 2013 capital program including the costs associated therewith; Arcan's
pursuit and examination of joint ventures, farm-outs and other similar
arrangements, as well as sales of non-core assets; expectations respecting the
financing and completion of Arcan's capital program; the expected benefits of
continued infrastructure development; and the expected benefits of Arcan's
hedging program.

The forward-looking information and statements contained in this news release
reflect several material factors and expectations and assumptions of Arcan
including, without limitation: that Arcan will continue to conduct its
operations in a manner consistent with past operations; new well completions;
the accuracy of current horizontal production data, historical well production
and waterflood results; the general continuance of current or, where applicable,
assumed industry conditions; continuity of reservoir conditions across Arcan's
land base; availability of sources to fund Arcan's capital and operating
requirements as needed; the continuance of existing and, in certain
circumstances, proposed tax and royalty regimes; expectations respecting Arcan's
reserves generally; the continuance of laws and regulations relating to
environmental matters; ability to retain key employees and executives;
assumptions relating to the cost of future wells; the ability of Arcan to
operate a capital expenditure program that is less than funds from operations;
and certain commodity price and other cost assumptions.

Arcan believes the material factors, expectations and assumptions reflected in
the forward-looking information and statements are reasonable at this time but
no assurance can be given that these factors, expectations and assumptions will
prove to be correct. The forward-looking information and statements included in
this news release are not guarantees of future performance and should not be
unduly relied upon. Such information and statements involve known and unknown
risks, uncertainties and other factors that may cause actual results or events
to differ materially from those anticipated in such forward-looking information
or statements including, without limitation: changes in commodity prices;
unanticipated operating results or production declines; for reasons currently
unforeseen, the current drilling locations identified by Arcan may prove to be
unsuitable or unavailable and drilling on the locations identified may not
occur; third party pipeline issues may adversely impact Arcan in a manner or
magnitude which is currently unanticipated; changes in tax or environmental laws
or royalty rates; increased debt levels or debt service requirements; reductions
to the amounts available under the Credit Facility as well as amendments thereto
that are unfavourable to Arcan; inaccurate estimation of Arcan's oil and gas
reserves volumes; limited, unfavourable or no access to debt or equity capital
markets; increased costs and expenses; the impact of competitors; reliance on
industry partners; circumstances may arise, including changes in accounting
policies, regulations or economic conditions, which could change the
assumptions, estimates or expectations or the information provided; shareholder
value may not be maximized in the manner suggested by Arcan or at all; there may
be circumstances where, for unforeseen reasons, a reallocation of funds may be
necessary as may be determined at the discretion of Arcan and there can be no
assurance as at the date of this news release as to how those funds may be
reallocated; should any one of a number of issues arise, Arcan may find it
necessary to alter its current business strategy and/or capital expenditure
program; and certain other risks detailed from time to time in Arcan's public
disclosure documents including, without limitation, those risks identified in
this news release, and in the AIF, copies of which are available on Arcan's
SEDAR profile at

The forward-looking information and statements contained in this news release
speak only as of the date of this news release, and Arcan does not assume any
obligation to publicly update or revise them to reflect new events or
circumstances, except as may be required pursuant to applicable laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release.

Arcan Resources Ltd.
Terry McCoy
Chief Executive Officer
(403) 262-0321

Arcan Resources Ltd.
Douglas Penner
(403) 262-0321

Arcan Resources Ltd.
Suite 2200, 500 - 4th Avenue S.W.
Calgary, AB T2P 2V6

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