(Source: Datamonitor)
US-based oil and gas exploration and production company Arena Resources has finalized a contract to transport the majority of its crude oil production from its Fuhrman-Mascho property in Andrews County, Texas. To date, all oil production from the property has been trucked resulting in higher transportation costs and limited marketability.
Arena Resources has announced the agreement is with one of pipeline operators whose midstream assets are comprised of approximately 12,500 miles of pipelines in the US.
The company 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.
Arena Resources 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.
Phil Terry, president and CEO of Arena Resources, said: "We are pleased to announce that we began construction October 16, 2009 and anticipate completion before the end of 2009. The gathering system tie-in with pipeline transport will provide more marketing options and possibly additional increases in revenues."
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