Arena Resources Signs Pipeline Agreement

Arena Resources finalizes a contract to transport the majority of its crude oil production from its Fuhrman-Mascho property in Andrews County, Texas.
Until now, oil has been trucked, which has raised costs whlle limiting marketability.
Management announced the agreement is with one of the country’s largest pipeline operators whose midstream assets are comprised of approximately 12,500 miles of pipelines including one of the largest common carrier pipelines for refined petroleum products in the United States.
Management estimates the gathering system will connect about 70 percent of the daily oil production by year end.
Additional tank batteries will be added as rapidly as possible, the company said. Management estimates that 95 percent of the total oil production from the Fuhrman-Mascho will be transported by pipeline when finished. Not all existing tank batteries will be part of the new gathering system. About 5 percent of current production will continue to be trucked.

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