Arena Resources, Inc. announced today financial and operational results for the first quarter ended March 31, 2008. Oil and gas revenues were $45.3 million compared to $16.6 million for the quarter ended March 31, 2007, a 172 percent increase and net income was $18.3 million or $0.51 per diluted share, compared to net income of $5.7 million or $0.18 per diluted share, for the same period in 2007, a 221 percent increase.
The revenue increase was due to increases in production volumes, primarily due to development activity, and increases in commodity prices.
Arena’s total production for the quarter ended March 31, 2008 was 517,042 BOE. This represents a 54 percent increase over the same three month period in 2007 and a 17 percent increase over the fourth quarter of 2007. For the three months ended March 31, 2008, oil sales volume increased to 453,056 barrels, compared to 282,538 barrels for the same period in 2007, a 60 percent increase and gas sales volume increased to 383,914 MCF, compared to 324,935 MCF for the same period in 2007, an 18 percent increase.
The average commodity prices received by Arena were $92.10 per barrel of oil and $9.34 per MCF of natural gas for the quarter ended March 31, 2008, compared to $51.71 per barrel of oil and $6.28 per MCF of natural gas for the quarter ended March 31, 2007.
Lease operating expenses, including production taxes, for the three months ended March 31, 2008 were $10.14 per BOE, a 3 percent increase from the prior year. Depreciation, depletion and amortization costs increased 51 percent to $11.88 per BOE. General and administrative costs, which included a $1,760,812 charge for stock based compensation, were $5.08 per BOE, a 38 percent increase, as compared to $3.67 per BOE in 2007, which included a $639,624 charge for stock based compensation.