Arena Resources announces pipeline contract

Arena Resources announces pipeline contract to move crude oil from Texas property

• On 2:54 pm EDT, Wednesday October 21, 2009

TULSA, Okla. (AP) -- Arena Resources Inc., an oil and natural gas exploration company, said Wednesday that it has finalized a contract to transport the majority of its crude oil production from a property in Andrews County, Texas.

Tulsa, Okla.-based Arena has been trucking crude from its Fuhrman-Mascho property, which has resulted in higher transportation costs and limited marketability.

Arena said the agreement is with one of the country's largest pipeline operators with midstream assets of about 12,500 miles of pipe. Arena did not name the company.

Arena estimates the gathering system will connect approximately 70 percent of the current daily oil production by the end of 2009.

Shares of Arena gained $1.21, or 2.8 percent, to $44.04 in afternoon trading.