SOURCE: Arena Resources, Inc.

January 17, 2007 09:30 ET

Arena Resources Announces 2007 Capital Expenditure Budget of $94.6 Million

TULSA, OK -- (MARKET WIRE) -- January 17, 2007 -- Arena Resources, Inc. (NYSE: ARD) ("Arena") ("Company") announced today an initial capital expenditure budget ("CAPEX") of $94.6 million for 2007, a 9% increase over the estimated $86.9 million spent on the development of Company properties in 2006. The budget targets 118 new wells to be drilled, 100 of them on its Fuhrman-Mascho lease in Andrews County, Texas, approximately 40 re-entries of existing wells, installation of water supply lines and equipment, conversion of existing wells into water injectors and general infrastructure upgrades. The Company continues to look for acquisition opportunities but has made no provision in its initial 2007 budget for any acquisition.

The 2007 CAPEX budget is subject to change based on market conditions, commodity price changes, rig availability, drilling results, possible acquisition opportunities and general operational results.

The majority of the budget will again be spent on the Company's Permian Basin properties. The Fuhrman-Mascho, Seven Rivers Queen, North Benson Queen and East Hobbs leases will receive 83% of the 2007 CAPEX budget. In 2006, these leases had 105 development wells drilled with a 100% success rate.

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. Initial 2007 CAPEX Budget*

                                         2007
                                         CAPEX
PROPERTY                               (Millions)
                                       ----------

Permian Basin:

Fuhrman-Mascho, Andrews County, TX     $     70.9 (Drill 100 wells, Re-frac
                                                   36 wells, Initiate 3
                                                   waterfloods, Upgrade
                                                   infrastructure)
North Benson Queen, Eddy County, NM           4.5 (Re-frac 5 wells,
                                                   Recondition water
                                                   injectors, Install &
                                                   upgrade equipment)
East Hobbs, Lea County, NM                    1.7 (Convert wells to water
                                                   injectors & suppliers)
Seven Rivers Queen, Lea County, NM            1.6 (Drill 2 wells, Install
                                                   and upgrade equipment)
                                       ----------
                                       $     78.7
                                       ----------
Oklahoma:

Midwell, Cimarron County, OK           $      3.0 (Drill 2 wells, Convert
                                                   existing wells to water
                                                   injectors, Install
                                                   equipment)
Ona Morrow, Texas County, OK                  2.0 (Drill 3 wells, Install
                                                   & upgrade equipment)
Hanes, Cimarron County, OK                    1.7 (Drill 1 well, Convert
                                                   existing wells to water
                                                   injectors, Install
                                                   equipment)
Eva South, Texas County, OK                   1.2 (Drill 2 wells)
                                       ----------
                                       $      7.9
                                       ----------
Texas:

Y 6, Fisher County, TX                 $      2.7 (Drill 4 wells, Convert
                                                   existing wells to water
                                                   injectors, Install
                                                   equipment)

Kansas:

Auntie Em, Gray County, KS             $      0.8 (Drill 4 wells)

Other:                                 $      4.5
                                       ----------

Total                                  $     94.6
*Initial CAPEX budget is subject to change

Contact Information

  • For further information contact:
    Bill Parsons
    K M Financial, Inc.
    (480) 947-1589