Arena acquires New Mexico play

Ray Tyson

Petroleum News Houston Correspondent

Tulsa exploration and production independent Arena Resources has agreed to acquire an 82 percent working interest, 67.5 percent net revenue interest, in a mineral lease in Lea County, N.M., for a cash purchase price of $10.1 million, the company said April 23.

The East Hobbs San Andres unit consists of about 920 acres with existing oil and gas production from 19 wells, positive cash flow and additional developmental opportunities, Arena said, estimating total proven reserves to be in excess of 6.4 million barrels of oil equivalent with net production of about 225 barrels of equivalent per day.

“In addition to a drilling program to be commenced on this property this year, management feels that daily production can be increased immediately through existing well behind-the-pipe opportunities,” said Tim Rochford, Arena’s chief executive officer.