Tulsa-based Arena Resources, Inc. announced today multiple property acquisitions located in Eddy County, New Mexico and Andrews County, Texas. The company also announced it has signed Letters of Intent for the acquisition of two additional properties located in Lea County, New Mexico and Andrews County, Texas, subject to the completion of due diligence and execution of definitive agreements. The purchase price for all the properties is $6.5 to be paid from existing cash balances.
The effective dates for the completed transactions are October 1, 2007 and November 1, 2007. Closing on the properties with LOIs is scheduled to occur on or before December 1, 2007.
The properties consist of approximately 8,900 acres. Arena will be the operator and have an average working interest of 96 percent and average net revenue interest of 72 percent in these properties. All of the properties are in close proximity to existing Arena-owned assets that are currently in varying stages of development. In addition to the producing wells currently on the properties, internal engineering has identified 120 new potential drilling locations, with the potential for additional locations through increased in-fill drilling and development.