Arena Resources, Inc. today announced its operations update for the first quarter of 2007.
During the first quarter, Arena drilled 28 new development wells, and re-stimulated 12 existing wells, all on its Fuhrman-Mascho lease in Andrews County, Texas. The Company continues to have a 100 percent success rate on wells drilled and completed on this lease.
Sales as a result of production for the quarter ended March 31, 2007 were approximately 337,000 barrels of oil equivalent, as compared to production of 192,000 BOE for the same quarter in 2006, a 76 percent increase, and a two percent increase over the 331,200 BOE produced in the fourth quarter of 2006.
Average net daily production increased from 3,600 barrels of oil equivalent per day in the fourth quarter of 2006 to 3,744 BOEPD.
Arena announced it has also increased its capital expenditure budget for 2007 to $104 million. The increase is primarily due to 20 additional development wells to be drilled on the Company’s Fuhrman-Mascho lease in Andrews County, Texas, bringing the estimated total number of new development wells to be drilled on the lease in 2007 to 120. Additional infrastructure improvements and upgrades are also planned.