Arena Resources Acquires 30 Wells in New Mexico and Texas

Arena Resources has finalized the acquisition of 100% working interests in mineral leases located in Eddy County, N.M., and Yoakum County, Texas. The leases have net revenue interests of approximately 78% and 80%, respectively, consist of approximately 2,700 acres with existing oil and gas production from 30 wells, positive cash flow and additional developmental opportunities. Preliminary engineering reports show combined proven reserves in excess of 2.5 million BOEs (Barrel of Oil Equivalents), and more than $20 million PV-10 (Present Value of Reserves, discounted 10%).

The acquisitions are effective as of Oct. 1, 2003.

Tim Rochford, Arena's chief executive officer, stated, "The acquisition of these properties adheres to the company's business plan of acquiring producing properties with existing cash flow and, equally important, production development opportunities for future years. These acquisitions also represent an immediate increase in our estimated discounted value of reserves to over $83 million, most of which has been acquired in the past two years."
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