Arcan Resources Ltd. Announces First Quarter 2009 Results

Arcan Resources Ltd. (TSX VENTURE:ARN) ("Arcan" or the "Company") announces
today the filing of its first quarter 2009 financial statements and management's
discussion and analysis. These documents can be retrieved electronically from
the SEDAR system under Arcan's profile at www.sedar.com.


FIRST QUARTER 2009 HIGHLIGHTS

- Drilled and tied in one (0.5 net) successful exploration gas well in the first
quarter of 2009;


- Received Good Production Practices ("GPP") approval on the GG pool in Hamburg,
converted one well to an injector, installed two pump jacks and constructed
light vehicle all season access;


- Production decreased to 1,350 boe per day for the three months ended March 31,
2009 down 9% from the 1,477 boe per day for the three months ended March 31,
2008 and down 8% from the fourth quarter of 2008, although oil production was up
over those periods;


- April 2009 production averaged over 1,700 boe per day, new exploration well on
production;


- Operating netbacks of $25.53 per boe (revenue of $47.16 per boe and operating
cost of $11.12 per boe) were down 52% from $53.47 in the first quarter of 2008
and down 9% from $28.15 in the fourth quarter of 2008;


- Funds from operations decreased 68% to $2.0 million (0.05 per diluted share)
in the first quarter of 2009 from $6.2 million (0.16 per diluted share) in the
first quarter of 2008 and consistent with the $2.0 million (0.05 diluted per
share) in the fourth quarter of 2008; and


- Arcan extended its $50 million bank line to April 2010.



Financial and                                                              
 Operating Summary                       Quarter Ended                     
                        ----------------------------------------------------
                         March 31,  March 31,  % Change period  December 31,
                             2009       2008       over period         2008
----------------------------------------------------------------------------
Financials ($000s except
 per share amounts)
 Oil and NGL sales          4,929      9,199               (46)       6,442
 Natural gas sales            802      1,876               (57)       1,657
Total petroleum and
 natural gas revenue        5,731     11,075               (48)       8,099
Funds from operations(1)    1,966      6,203               (68)       1,987
 Per share basic(1)          0.05       0.17               (71)        0.05
 Per share diluted(1)        0.05       0.16               (69)        0.05
Net Income (loss)          (1,290)     1,645              (178)        (772)
 Per share basic and
  diluted                   (0.03)      0.04              (175)       (0.02)
Capital expenditures
 - cash                     3,177      9,556               (67)       9,980
Total Assets              150,398    133,213                13      149,724
Total Liabilities          63,264     51,126                24       61,493
Shareholders' equity       87,133     82,087                 6       88,231
Bank Loan                  41,194     22,574                82       29,633
Net debt and working
 capital                   42,073     33,495                26       40,405
----------------------------------------------------------------------------
Operating, General and
 Administrative (G&A)
Production:
 Crude oil (bbls per day)   1,110      1,083                 2        1,102
 Natural gas (mcf per day)  1,444      2,366               (39)       2,199
 Total (boe per day)(6:1)   1,350      1,477                (9)       1,468
Average realized price:
 Crude oil ($ per bbl)      49.36      93.32               (47)       63.55
 Natural gas ($ per mcf)     6.17       8.72               (29)        8.19
 Combined average (incl.
  processing revenue)
  ($ per boe)               47.16      82.37               (43)       59.95
Netback ($ per boe)
Petroleum and natural
 gas sales                  47.16      82.37               (43)       59.95
Royalties                  (10.51)    (17.70)              (41)      (13.93)
Operating and
 transportation
 expenses                  (11.12)    (11.20)               (1)      (17.88)
Operating netback(2)        25.53      53.47               (52)       28.15
G&A expenses - cash         (7.11)     (5.07)               40        (9.67)
Interest expense - net      (2.23)     (2.01)               11        (2.15)
Corporate netback(3)        16.19      46.39               (65)       16.32
----------------------------------------------------------------------------
Common Shares (000s)
Shares outstanding,
 end of period             37,869     37,827                 0       37,869
Weighted average
 shares - basic            37,829     36,716                 3       37,869
Weighted average
 shares - diluted(4)       37,829     37,664                 0       37,869

(1) The reader is referred to the section - "Special Note Regarding
    Non-GAAP Measures" in this press release.
(2) Operating netback is calculated as revenue less royalties and
    operating expenses.
(3) Corporate netback is calculated as Operating netback less G&A and
    interest.
(4) In computing the net loss per diluted share in the respective periods,
    nil shares were added to the weighted average number of shares
    outstanding because they were anti-dilutive.



Overview

The world remains cautious however it appears that pessimism is slowly being
reduced. Arcan's management believes recent market activity has been translated
as a possible completion of the bottom in the markets and might be a reversal of
the downward trend. For Arcan, the first quarter of 2009 marked significant
reductions in commodity prices, the implementation of the new royalty rates in
Alberta, global financial liquidity crises and massive sell-offs in equity
markets as well as significant new lows in Arcan's share trading price. The
market for junior energy stocks has rebounded sharply off the lows, moving Arcan
into the $1.00 per share trading range, still at a deep discount to year end and
strip pricing net asset value.


Arcan's light oil provides solid netbacks as oil prices have moved in an upward
direction from US $40 to $60 WTI while natural gas pricing continues to be far
more challenging and may face price fluctuations for a period of time to come.
Through this turbulent period Arcan continues to focus on building long-term
value for the future. Arcan expects to operate through 2009 on cash flow from
operations and its bank line which has been reviewed and is secured until April
2010. To support its cash flow, Arcan entered into a fixed price oil swap
contract to receive $64.40 per barrel in exchange for Canadian dollar WTI on oil
production of 500 barrels per day for the period from April 1 to December 31,
2009.


Arcan expended $3.2 million on its properties and infrastructure during the
quarter ended March 31, 2009. During the first quarter of 2009, Arcan focused on
its core light oil properties. In February 2009 Arcan received GPP in its
Hamburg GG pool. Arcan pipelined and converted one well to a water injector
well, installed pump jacks on two other producing wells and built an all season
light vehicle access road. After final injection approvals were received in
early May in Hamburg injection levels have climbed to over 2,000 bbls per day.
When gas/oil ratios have stabilized in Hamburg, Arcan expects to increase its
production from existing producing wells. Also, Arcan is reviewing drilling
plans in light of the recent Alberta royalty reduction incentives, with the
possibility of drilling its first well as early as August 2009 within the
Hamburg GG pool. Arcan exited the quarter with $42.1 million in debt and working
capital and plans to prudently invest in capital items within its cash flow and
its $50 million secure bank lines for the balance of the year.


Production was 1,350 boe per day in the first qurter of 2009, down approximately
118 boe per day from the fourth quarter of 2008, due mainly to the sale of a gas
well at the end of 2008 which produced approximately 70 boe per day, as well as
shut in production in Hamburg as wells were re-worked and pump jacks were being
installed. Production was elevated to over 1,700 boe per day in April as the new
Hamburg 50% working interest natural gas well commenced production on April 1,
2009 to take advantage of the new royalty incentives. This well was on
production for approximately two weeks before being shut-in for a build up test,
and is now back on production. Arcan is estimating average production of 1,300
to 1,700 boe per day for 2009.


Hamburg, McLeod and Deer Mountain are accessible for drilling in late July and
Arcan is currently reviewing its development plans for that timeframe. If
commodity prices warrant, Arcan will take advantage of its infill drilling
locations in the Hamburg GG pool as early as August as well productivity,
current oil pricing and royalty incentives provide those wells with
approximately a 100 day payout. As well, Arcan is working with its drilling
partner to set drilling plans that would commence as early as the end of July
2009 on a number of exploration prospects. Finally, Arcan continues to explore
for ways to continue development of the Deer Mountain assets, where ultimately
cash flow from Hamburg may be the most prudent avenue for development.


Arcan expects to maintain its production base in 2009 through a prudent level of
investment based on anticipated cash flow. Arcan's earlier investments provide
the Company with a long-life, highly concentrated, Company-controlled asset
base. Paramount to Arcan and to its management team, is adding value for the
Company's shareholders. For 2009, Arcan is are implementing plans to hold down
costs and turn drilling success and water injection into solid reserve bookings,
allowing Arcan to continue to solidify its value.


Outlook

Enhanced recovery schemes require up-front capital investments, with returns
being generated over a period of years. Successful water injection operations at
Hamburg and Deer Mountain were major milestones and are expected to generate
increased recoveries over the longer term, creating significantly enhanced
reserves and net asset value. With significant investments in infrastructure in
place, Arcan now looks to continue to take advantage of its deep development
inventory to continue to increase net asset value per share. Arcan's anticipated
plans for 2009 and beyond include:


- Infill development drilling in the Hamburg GG pool in conjunction with our
waterflood is aimed at increasing production and significantly extending the
life and value of the asset. Arcan has had exploration successes over the past
year and it is expanding its exploration base for next winter as Arcan moves
into B.C. to take advantage of the more favourable royalty regime.


- At McLeod, Arcan has not focused on natural gas drilling since 2007 but
continue to accumulate deeper, higher-impact targets for future drilling when
natural gas prices improve. Arcan, if the farm-out is elected by its industry
partner, may drill one play in this area whereby Arcan will earn 50% of a well,
if successful. Drilling is anticipated to start in the third quarter of 2009.


- Expand Deer Mountain through the combination of Arcan's new battery, full
water handling facility, expanded water injection scheme, drilling of new
injection/production patterns in the unit and drilling of new patterns located
off the unit on our 56 sections of undeveloped lands along the reef.


Arcan's 2009 capital program is expected to remain within cash flow and debt
capacities and will continue to focus on growth through exploration and
development in its three core areas of Deer Mountain, McLeod and Hamburg. The
Company's strengths include $110 million of tax pools, a strong slate of
directors, experienced staff, excess productive capacity for tie-in, recently
initiated and growing waterfloods, new drilling plans and growth potential.
Arcan is building for the future!


At March 31, 2009 Arcan had 13 full time office employees and 9 full time field
employees.


Additional information regarding Arcan's results, the management's discussion
and analysis for the three months ended March 31, 2009 as compared to the three
months ended March 31, 2008 and December 31, 2008, the unaudited interim
financial statements for the three months ended March 31, 2009 and 2008 together
with the notes thereto as well as the audited financial statements for the year
ended December 31, 2008 and 2007, together with the notes related thereto and
other documents filed on SEDAR, including historical financial statements, the
information circular dated April 9, 2009 relating to the Company's annual
general and special meeting to be held on May 20, 2009 and the Company's Annual
Information Form dated April 3, 2009 for the year ended December 31, 2008.,
together with the notes related thereto, are available under Arcan's SEDAR
profile at www.sedar.com.


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. Arcan has 37,868,560 common
shares, 586,631 Warrants, 750,000 performance warrants, and 3,638,500 stock
options outstanding.


BOE Presentation - Production and reserve information is commonly reported in
units of barrel of oil equivalent ("boe"). For purposes of computing such units,
natural gas is converted to equivalent barrels of oil using a conversion factor
of six thousand cubic feet to one barrel of oil. Boe's may be misleading,
particularly if used in isolation. A boe conversion ratio of six thousand cubic
feet of natural gas to one barrel of oil (i.e., 6 Mcf: 1 bbl) is based on an
energy equivalency conversion method primarily applicable at the burner tip and
does not represent a value equivalency at the wellhead. Readers should be aware
that historical results are not necessarily indicative of future performance.


Special Note Regarding Non-GAAP Measures - This press release contains financial
terms that are not considered measures under Canadian generally accepted
accounting principles ("GAAP"), such as "funds from (used in) operations". This
measures is commonly utilized in the oil and gas industry and is considered
informative for management and shareholders. Specifically, "funds from (used in)
operations" represents net loss for the period adjusted for non-cash items in
the statement of operations. This term should not be considered an alternative
to, or more meaningful than cash flow from operating activities as determined
under GAAP as an indicator of the Corporation's performance. Management
considers this term to be important as it helps evaluate performance and
demonstrates the Corporation's ability to generate sufficient cash to fund
future growth opportunities.


Advisory Regarding Forward-Looking Information and Statements

This press 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", "estimate", "guidance", "objective",
"ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and
similar expressions are intended to identify forward-looking information or
statements. In particular, but without limiting the foregoing, this press
release contains forward-looking information and statements pertaining to the
following: Arcan's income taxes, tax liabilities and tax pools; the volume and
product mix of Arcan's oil and gas production; oil and natural gas prices and
Arcan's risk management programs; the amount of asset retirement obligations;
future liquidity and financial capacity and resources; cost and expense
estimates; results from operations and financial ratios; cash flow
sensitivities; royalty rates and their impact on Arcan's operations and results;
future growth including development, exploration, and acquisition and
development activities and related expenditures.


The forward-looking information and statements contained in this press 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; the general continuance
of current or, where applicable, assumed industry conditions; availability of
debt and/or equity sources to fund Arcan's capital and operating requirements as
needed; the continuance of existing and, in certain circumstances, proposed tax
and royalty regimes; the accuracy of the estimates of Arcan's reserve volumes;
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 press 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; changes in tax or environmental laws
or royalty rates; increased debt levels or debt service requirements; 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; and certain other risks
detailed from time to time in Arcan's public disclosure documents including,
without limitation, those risks identified in this press release, and in Arcan's
Annual Information Form for the year ended December 31, 2008, copies of which
are available on Arcan's SEDAR profile at www.sedar.com.


The forward-looking information and statements contained in this press release
speak only as of the date of this press 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.