Arena Resources, Inc. Announces Pipeline Transport Agreement
Tulsa, Oklahoma — October 21, 2009 — Arena Resources, Inc. (NYSE-ARD)(“Arena”)(“Company”) announced today it has finalized a contract to transport the majority of its crude oil production from its Fuhrman-Mascho (“Fuhrman-Mascho”) property in Andrews County, Texas. To date, all oil production from this property has been trucked resulting in higher transportation costs and limited marketability.
Management announced the agreement is with one of the country’s largest pipeline operators whose midstream assets are comprised of approximately 12,500 miles of pipelines including one of the largest common carrier pipelines for refined petroleum products in the United States.
Management estimates the gathering system will connect approximately 70% of the current daily oil production by year end 2009. Additional tank batteries will be added as rapidly as possible. Management estimates that 95% of the total oil production from the Fuhrman-Mascho will be transported by pipeline when completely finished. Not all existing tank batteries will be part of the new gathering system. Approximately 5% of current production will continue to be trucked.
Mr. Phil Terry, President and Chief Executive Officer stated, “We are pleased to announce that we began construction October 16, 2009 and anticipate completion before the end of the year. The gathering system tie-in with pipeline transport will provide more marketing options and possibly additional increases in revenues.”
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About Arena Resources, Inc.
Arena Resources, Inc. is an oil and gas exploration, development and production company with current operations in Texas, Oklahoma, Kansas and New Mexico. |
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This release contains forward-looking statements within the meaning of the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995 that involve a wide variety of risks and uncertainties, including, without limitations, statements with respect to the Company's strategy and prospects. Readers and investors are cautioned that the Company's actual results may differ materially from those described in the forward-looking statements due to a number of factors, including, but not limited to, the Company's ability to acquire productive oil and/or gas properties or to successfully drill and complete oil and/or gas wells on such properties, general economic conditions both domestically and abroad, and the conduct of business by the Company, and other factors that may be more fully described in additional documents set forth by the Company.
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For further information contact:
Bill Parsons • Vice President Investor Relations
480-947-1589 • bparsons@arenaresourcesinc.com |
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