Arena Resources: Economy right for growth

TULSA, Okla., Nov. 4 (UPI) -- Oklahoma-based Arena Resources Inc. announced the rise in crude oil prices and declining costs created an opportunity to expand oil development in Texas.

Arena Resources, an oil and gas exploration company active in the U.S. south, announced it added a fourth drilling rig to boost development of the Fuhrman-Mascho reserve in Andrews County, Texas.

The company said gross production from the Texas property increased from 240 barrels per day to roughly 7,000 barrels per day due to recent expansions.

The fourth rig will drill 10 wells by the end of the year, bringing to total number of wells at Fuhrman-Mascho to 175 in 2009.

Phil Terry, president and chief executive officer at Arena Resources, said the expenditure budget of $107 million and current market conditions created a climate for expansion.

"The recent increase in crude oil prices, in combination with decreased drilling and operating costs, provide attractive economics to support the increased activity," he said.