Arena Resources Inc. Q1 2008 Earnings Call Transcript

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2008-05-21 09:19:08.0

Tags: Arena Resources Inc.

Question-and-Answer Session

Operator

Thank you. We will now be conducting a question and answer session. In the interest of time you will be limited to one question. (Operator Instructions) And remember that in the interest of time you will be limited to one question. Our first question comes from the line of Neal Dingmann with Dahlman Rose. Please proceed with your question.

Neal Dingmann

Hey guys great quarter.

Tim Rochford

Thanks, Neal.

Neal Dingmann

I wanted to ask three part question for you, Tim. I was wondering on concerning on the Fuhrman Mascho, couple things for you or Phil as far as -- One, how far does that thick or is there way to know how far the thick goes, and then will that impact your decision as to how far when or how soon you will go after some fives in that area?

Tim Rochford

Well, I'm going to defer to Phil. But I think what we have seen is as we had, we are getting in to the curve, on that Grayburg, we're learning more about it. It's becoming more promising for us in terms of the vastness. Phil maybe you could address that more specifically.

Phil Terry

Yes. Neal, as best we can determine right now, that thick section of the Grayburg, will basically fall in in to about 5,000 acres as best we can see now, there is are on going studies we are doing to completely delineate that. But we are encouraged by the fact we feel like we have a nice corridor to pursue. The 10 acre locations that we have drills have been productive and good in terms of initial production and IPs, and it appears they are going to produce very similarly to the 20s. But if I had to put a number on the number of acres it would be somewhere around 5,000 of the total.

Neal Dingmann

And what about the five acre space, Tim, could you go after some of those?

Tim Rochford

Yeah, I think that that again falls in line with the San Andres in terms of how that's developed, we have had so much on our plate for some time, Neal, that although I think that we all believe including the listeners on this call have been following the story on Fuhrman Mascho and are so familiar with what our neighbors are doing, that there is no question that five acres will enter in to this. But I think we're some time out before we're seeing that. Phil, would you have any thoughts on that?

 

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