(Source: Business Wire)
Arena Resources, Inc. (NYSE: ARD) ("Arena" or the "Company") today announced it had extended its current credit facility for up to 90 days effective April 15, 2009. The Company chose to decrease the borrowing base of the extended facility to $75 million while finalizing a new facility which is expected to be in place within 30 days.
The new facility is expected to have an immediate borrowing base of $75 million with an accordion feature which would allow for expansion of the borrowing base to $150 million in the future. Mr. Tim Rochford, Chairman of the Board, stated, "Based on our increased proven reserve base for 2008, the Company received term sheets from several lending institutions to expand our current credit facility from $150 million to $200 million. After further examination and analysis, management chose not to accept any of the proposals due to the financial and cash impact of associated fees and expenses. Historically, Arena has not had to use its credit facility for ongoing operations and development activity. We felt that in this current economic environment it would be prudent to choose a more flexible structure which would provide us with adequate credit availability and allow us to maintain the ability to be proactive in seeking acquisition opportunities while at the same time being sensitive to the overall financial costs and our cash position, which currently exceeds $50 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.
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