(Source: Business Wire)
Arena Resources, Inc. (NYSE: ARD) ("Arena" or the "Company") announced
today it has finalized a contract to transport the majority of its crude
oil production from its Fuhrman-Mascho ("Fuhrman-Mascho") property in
Andrews County, Texas. To date, all oil production from this property
has been trucked resulting in higher transportation costs and limited
marketability.
Management announced the agreement is with one of the country's largest
pipeline operators whose midstream assets are comprised of approximately
12,500 miles of pipelines including one of the largest common carrier
pipelines for refined petroleum products in the United States.
Management estimates the gathering system will connect approximately 70%
of the current daily oil production by year end 2009. Additional tank
batteries will be added as rapidly as possible. Management estimates
that 95% of the total oil production from the Fuhrman-Mascho will be
transported by pipeline when completely finished. Not all existing tank
batteries will be part of the new gathering system. Approximately 5% of
current production will continue to be trucked.
Mr. Phil Terry, President and Chief Executive Officer, stated, "We are
pleased to announce that we began construction October 16, 2009 and
anticipate completion before the end of the year. The gathering system
tie-in with pipeline transport will provide more marketing options and
possibly additional increases in revenues."
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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