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Arena
Resources, Inc. Increases 2006
Capital Expenditure Budget to $76.5 Million
Tulsa, Oklahoma — July 25, 2006 —
Arena Resources, Inc. (AMEX: ARD) ("Arena" or the "Company")
today announced today it has increased its capital expenditure
budget by $11.5 million for 2006 to $76.5 million with
an estimated total of 130 wells to be drilled. The increase
is a result of escalated development work on the Company’s
Fuhrman – Mascho lease in Andrews County, Texas,
Seven Rivers Queen lease in Lea County, New Mexico and
three Kansas properties in the second quarter. Due to
rig availability, the Company was able to accelerate
drilling in New Mexico and Kansas, originally scheduled
for the second half of 2006.
The
Company has continued to improve and accelerate development
on a number of its properties. Over the remainder of
the year Arena plans to drill approximately 50 additional
development wells and re-stimulate 26 more existing
wells on its Fuhrman – Mascho lease. Based on
the results of the seven wells drilled and five re-stimulations
in the second quarter on its Seven Rivers Queen lease,
the Company will drill six additional wells in the third
quarter and re-stimulate seven more existing wells by
year-end. Originally, the Company had planned to drill
four development wells on its Auntie Em Prospect in
Gray County, Kansas, in the fourth quarter. Due to early
rig availability, the Company drilled the four wells
at Auntie Em in the second quarter in addition to four
other Kansas wells, two on its Rocky Prospect and two
on its Syracuse Prospect. Based on the results of those
wells, management has continued to add to its Kansas
lease acreage and has now budgeted to drill four more
wells on the Auntie Em, two more on the Rocky Prospect
and three more on its Syracuse Prospect in the fourth
quarter. In addition to these key properties, the Company
is currently drilling five new development wells on
its East Hobbs lease in Eddy County, New Mexico and
converting eight more existing wells to water injectors
as part of a secondary recovery program. The Company
has budgeted to drill a total of nine new development
wells on four different leases in Oklahoma and two on
its Y-6 lease in Fisher County, Texas, by year-end.
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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