|
|
|
|---|
 |
 |
 |
 |
|---|
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
|---|
 |
 |
 |
 |
|
|---|---|---|---|---|
 |
||||
 |
 |
 |
|---|
|
|
 |
||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Arena Resources Announces 2010 Initial Capital Expenditure Budget of $195 Million $185 Million Allocated to Fuhrman-Mascho Projects Tulsa, Oklahoma — February 24, 2010 — Arena Resources, Inc. (NYSE-ARD)(“Arena”)(“Company”) announced today that the Board of Directors of Arena has approved an initial 2010 capital expenditure budget (“CAPEX”) of $195 million, representing an 82% increase over the estimated $107 million spent in 2009. The CAPEX figures do not reflect any costs of acquisitions made in 2009 or projected acquisitions in 2010. Management stated that it will use approximately $185 million at its Fuhrman-Mascho (“FM”) property in Andrews County, Texas. Currently, the Company has four drilling rigs operating at the FM and based on the current drilling schedule should drill a minimum of 300 new San Andres oil wells. In addition, management plans on re-fracing 40 existing San Andres wells, assessing alternatives to the current method of gathering and processing its San Andres gas production, infrastructure improvements and on-going preparation for secondary recovery activity the latter part of 2010. The remaining $10 million will be used to perform a number of deeper tests with an additional contract rig on existing acreage in the Clearfork, Devonian and Glorietta horizons in Texas, continued infrastructure improvements, well conversions and the drilling of five new wells, three proved undeveloped locations (“puds”) in New Mexico and one pud and a water supply well in Oklahoma. The Company currently has three costless collars in place to December 31, 2010: 1)1,000 barrels of oil per day with a $70.00 floor and $92.85 ceiling, 2) 2,000 barrels of oil per day with a $65.00 floor and $93.00 ceiling, and 3) 5,000 MMBtu of natural gas per day with a $4.00 floor and $7.87 ceiling. The natural gas collar is based on the El Paso Permian Index. Mr. Phil Terry, President and Chief Executive Officer stated, “Our 2010 capital expenditure budget of $195 million represents an 82% increase in expenditure over last year. The capital will be employed to increase production, reserves, and shareholder value by drilling increased numbers of wells, implementing waterfloods, improving our operating infrastructure, and testing the potential of deeper producing horizons in our Fuhrman Mascho core area. We anticipate funding the capital expenditure budget from cash flow. We now have approximately 38,000 acres of leasehold at our Permian Basin Fuhrman Mascho area in Andrews County, Texas, which provides us with an inventory of drilling opportunities for several years. We will also continue to seek acquisition opportunities in the Permian Basin or other areas of interest. We are well positioned to grow as we have cash reserves, no debt and an available credit facility.”
|
|||||||||||||
| © COPYRIGHT 2001-2010 ARENA RESOURCES, INC. ALL RIGHTS RESERVED. |
| COMPANY PROFILE :: MANAGEMENT TEAM :: INVESTOR RELATIONS RESEARCH :: PRESS RELEASES/CONFERENCE CALLS :: CORPORATE GOVERNANCE ARENA PRESENTATIONS :: SEC FILING :: CONTACT US |
