Arena Ups Capex Budget by 9%
Arena Resources, Inc. on Wednesday announced 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.
Arena Resources, Inc. is an oil and gas exploration, development and production company with current operations in Texas, Oklahoma, Kansas and New Mexico.
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