TULSA, Okla. - (Business Wire) Arena Resources, Inc. (NYSE: ARD) (“Arena”)(“Company”) announced today that it has added a fourth drilling rig, a contract rig, to accelerate the development of its Fuhrman-Mascho (“Fuhrman-Mascho”) assets in Andrews County, Texas. The additional rig is currently drilling its first well. The Fuhrman-Mascho drilling fleet now consists of two Arena owned drilling rigs and two contract rigs. The Company estimates that the fourth rig will drill 10 wells by year-end, which would result in a total of 175 Fuhrman-Mascho wells drilled in 2009. The current drilling well count for 2009 is 124 wells. Management now estimates that the current 2009 capital expenditure budget of $107 million is adequate and that current commodity prices will generate sufficient cash flow to fully fund the four rig development drilling program.
In addition, the Company implemented a new hedge, a costless collar, on 1,000 barrels of oil per day with a $70.00 floor and $92.85 ceiling for the period January 1, 2010 to December 31, 2010.
Mr. Phil Terry, President and Chief Executive Officer, stated, “We are pleased to announce the addition of the fourth drilling rig at our Fuhrman-Mascho asset area. The Company has consistently stated its intent to accelerate the exploitation of our Fuhrman-Mascho assets as allowed by commodity prices and associated cash flow from operations. The recent increase in crude oil prices, in combination with decreased drilling and operating costs, provide attractive economics to support the increased activity. We have cash reserves, no debt, and a fully available credit facility, all of which position Arena to develop its current assets and take advantage of other potential growth opportunities.”
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.
Arena Resources, Inc.
Bill Parsons, 480-947-1589
VP Investor Relations
