Arena Resources Tie-in Saves on Crude Transportation Charges
Arena Resources Inc. will build a tie-in pipeline to transport the majority of its crude oil production from its Fuhrman-Mascho property in Andrews County, Texas. To date, all oil production from this property has been trucked, resulting in higher transportation costs and
limited marketability.
Arena Resources announced it has finalized a contract with an unnamed pipeline operator, whose midstream assets are comprised of approximately 12,500 miles of pipelines.
Arena’s management estimates the gathering system will connect approximately 70 percent of the company’s current daily oil production by year end 2009. Additional tank batteries will be added as rapidly as possible. Management estimates that 95 percent of the total oil production from the Fuhrman-Mascho will be transported by pipeline when completely finished. Not all existing tank batteries will be part of the new gathering system. Approximately 5 percent of current production will continue to be trucked.
“We are pleased to announce that we began construction Oct. 16, and anticipate completion before the end of the year,” says Phil Terry, president and CEO. “The gathering system tie-in with pipeline transport will provide more marketing options and possibly additional increases in revenues.”
Arena Resources is an oil and gas exploration, development and production company with current operations in Texas, Oklahoma, Kansas and New Mexico. |
