Arena Resources, Inc. Announces 2007 Year End Reserves and Production
February 28 2008 - 9:00AM
Business Wire
Arena Resources, Inc. (NYSE: ARD) (�Company�) (�Arena�) announced
today that its estimated total proved reserves of oil and natural
gas as of December 31, 2007 increased 29% to 55.4 million barrels
of oil equivalent (BOE), from 43.1 million BOE at year end 2006,
and 32% when adjusted for 2007 oil and gas sales. The 2007 year-end
proved reserves consisted of 47.4 million barrels of crude oil
(86%) and 48.1 Bcf of natural gas (14%). Of the 55.4 million BOE of
total proved reserves, 36% are proved developed and 64% are proved
undeveloped. The proved developed reserves consist of proved
developed producing (26%), proved developed non-producing (6%) and
proved developed behind-pipe (4%). The estimated present value,
using a 10% discount rate, of the future net cash flows before
income taxes of the Company�s proved oil and natural gas reserves
as of December 31, 2007, was $1.982 billion, using year-end average
pricing of $88.89 per barrel for oil and $8.74 per Mcf for natural
gas. This compares to $848 million at year-end 2006 using prices of
$54.21 per barrel for oil and $5.94 per Mcf for gas. These
estimates are based on an independent reserve study of Arena�s oil
and gas properties prepared by Lee Keeling & Associates, Inc.,
Tulsa, Oklahoma. Total net sales production for the fourth quarter
of 2007 was 441,632 BOE, as compared to 331,200 BOE for the same
period in 2006, an increase of 33%. Net sales production for the
full year 2007 was 1,566,627 BOE, compared to 1,065,613 BOE in
2006, an increase of 47%. The Company�s average net daily sales
production in the fourth quarter of 2007 was approximately 4,800
BOE per day, as compared to 3,600 BOE in the fourth quarter 2006,
and 4,380 BOE in the third quarter 2007. Mr. Tim Rochford, CEO,
stated, �Our acquisition and development activities combined to
replace 885% of our 2007 production, with over 44% of that being
accomplished through our development activities. We announced the
completion of a series of Permian Basin property acquisitions in
November and December, all in close proximity to our existing New
Mexico and Texas assets, adding additional reserves and drilling
locations. We drilled 134 new wells, 133 of which were drilled on
our Fuhrman Mascho leases with a 100% success rate. Fourteen of
those wells were not completed until this year and have contributed
to our average daily production increasing to over 6,000 BOE per
day during the month of February. We have announced a preliminary
2008 capital expenditure budget of $218 million, with over 90% of
it allocated to our Permian Basin properties. We will focus on the
continued development of our existing core properties, while
continuing to seek additional acquisitions.� 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.
Ardagh (NYSE:ARD)
Historical Stock Chart
From Jun 2024 to Jul 2024
Ardagh (NYSE:ARD)
Historical Stock Chart
From Jul 2023 to Jul 2024