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Arena Resources Completes New Mexico
Lease Acquisition
Acquisition
Increases The Company's Net Daily Production To 700
Barrels of Oil Equivalent
Tulsa, Oklahoma — May 10, 2004 — Arena Resources,
Inc. (AMEX: ARD) ("Arena") Tulsa, announced today it
has finalized the acquisition of an 82% working interest,
67.5% net revenue interest in the East Hobbs San Andres
Unit ("lease") located in Lea County, New Mexico for
a cash purchase price of $10,000,000. Funding was provided
through the Company's bank credit facility.
The lease consists of approximately 920 acres with existing
oil and gas production from 19 wells, positive cash
flow and additional developmental opportunities. Preliminary
engineering reports estimate Arena's interest of the
total proven reserves as of March 1, 2004 to be in excess
of 6.4 million barrels of oil equivalent (BOE's) with
present value of reserves, discounted 10% (PV-10) of
approximately $73 million and net daily production of
approximately 225 BOE's.
This acquisition increases the Company's net daily production
to approximately 700 BOE's, proven reserves to an estimated
15.9 million BOE's and a PV-10 reserve value of over
$165 million.
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
Jim Drewitz, Investor Relations
Jdrewitz@comcast.net
972-355-6070
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