Arena Resources, Inc. said that it would spend $195 million in capital expenditures in 2010 to explore and develop its oil and gas properties. This was an 82% increase from the $107 million the company spent in 2009.
Arena Resources, Inc. said that $185 million would be allocated toward the company’s Fuhrman-Mascho prospect located in Andrews County, Texas. The company has four drilling rigs currently operating here and plans on drilling 300 wells in 2010 targeting the San Andres formation.
Arena Resources, Inc. will also use some of the capital to recomplete forty wells in the Fuhrman-Mascho prospect, hoping to stimulate more production as the wells decline over time.
The balance of the capital expenditures in 2010 will be used to drill five new wells on other acreage that Arena Resources, Inc. leases in Texas, as well as infrastructure improvements to process and transport the natural gas.
Arena Resources, Inc. is an oil and gas exploration and production company with properties in Texas, Kansas, Oklahoma and New Mexico. The company’s main asset is the 38,000 net acres under lease in the Fuhrman-Mascho prospect, which is located in the Permian Basin in Texas.