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Arena Resources, Inc. Announces Increase
and Extension of Credit Facility
Tulsa, Oklahoma — March 31, 2006 —
Arena Resources, Inc. (AMEX: ARD, ARD.WS) ("Arena")
("Company") announced today its existing credit facility
with MidFirst Bank has been increased to a maximum of
$150,000,000, with an immediate initial borrowing base
of $65,000,000. Prior to the increase the credit facility
had a $50,000,000 maximum with a $35,000,000 borrowing
base. The agreement was extended for three years from
the date of closing.
The
existing agreement was modified and restated to incorporate
a syndicated credit agreement with MidFirst Bank remaining
as agent for the syndicate which includes Compass Bank
and Bank of Scotland.
The interest rate on the credit facility is a floating
rate equal to the 30, 60 or 90 day LIBOR rate plus 2%.
Mr. Tim Rochford, President & CEO, stated, "This
increase in our credit facility not only provides us
additional coverage for our 2006 CAPEX budget of $65,000,000,
but also provides us the flexibility for possible increases
to our CAPEX budget while aggressively seeking additional
acquisitions."
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.
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.
For further information contact:
K M Financial, Inc.
Bill Parsons
480-947-1589
k-m-financial@msn.com
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