Arena’s Fuhrman Mascho properties comprise approximately 17,000 acres. The Company initiated a development program at the Fuhrman Mascho in April 2005 and has currently drilled 177 wells to a deeper, oil bearing formation at approximately 4,800 feet. Arena has the drilling rights to the Yates gas formation on 14,000 acres and has agreed to dedicate the Yates gas reserves to the project for the life of the reserves. Based on 40 acre spacing, the Company estimates there are 350 potential locations including approximately 100 idle or temporarily abandoned well bores which were drilled prior to Arena’s acquisition of the properties. These wells were drilled to the deeper, oil bearing formation and are excellent candidates to be re-completed at the shallower Yates formation. The agreement requires Arena to drill or recomplete 60 – 90 wells per year for a four year period and to strive on a best efforts basis to attain a volumetric goal of 31,000 – 37,000 mcf per day or more. It is estimated that construction of the pipeline will reach the properties by the 2nd quarter, 2008.

Mr. Tim Rochford, CEO stated, “Since acquiring our initial Fuhrman Mascho properties in December 2004, we have explored various options for development of the Yates gas formation. We believe that this agreement with Aspen Pipeline provides Arena with the best opportunity to fully develop and market the Yates gas production by providing a delivery system and an established purchaser. We plan to begin our drilling / recompletion program in the third quarter with an estimated capital expenditure budget of $45 million over the next four years.”

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08.07.07
Arena Resources, Inc.
Announces Second Quarter
and Six Month 2007 Financial
and Operating Results

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04.02.07
Arena Resources, Inc. Announces Financial and Operational Results
for Fourth Quarter and
Year End 2006