Attached files
| file | filename |
|---|---|
| 10-K - 10-K - ARENA RESOURCES INC | arena_10k123109.htm |
| EX-31.1 - EXHIBIT 31.1 - ARENA RESOURCES INC | arena_10k123109ex311.htm |
| EX-23.1 - EXHIBIT 23.1 - ARENA RESOURCES INC | arena_10k123109ex231.htm |
| EX-31.2 - EXHIBIT 31.2 - ARENA RESOURCES INC | arena_10k123109ex312.htm |
| EX-32.1 - EXHIBIT 32.1 - ARENA RESOURCES INC | arena_10k123109ex321.htm |
| EX-23.2 - EXHIBIT 23.2 - ARENA RESOURCES INC | arena_10k123109ex232.htm |
| EX-32.2 - EXHIBIT 32.2 - ARENA RESOURCES INC | arena_10k123109ex322.htm |
Exhibit 99
WILLIAMSON
PETROLEUM CONSULTANTS, INC.
TEXAS REGISTERED ENGINEERING FIRM
F-81
303
VETERANS AIRPARK LANE, SUITE 1100
MIDLAND, TEXAS 79705
PHONE:
432-685-6100
FAX:
432-685-3909
E-MAIL: WPC@WPC-INC.COM
February
26, 2010
Arena
Resources, Inc.
6555
South Lewis Avenue
Tulsa,
Oklahoma 74136
Attention
Mr. Sherman Hyatt
Gentlemen:
| Subject: |
Review of
Estimates Prepared by
Arena
Resources, Inc.
of
Oil and Gas Reserves and Associated Net Revenue
in
Certain Properties
Located
in Kansas, New Mexico, Oklahoma and Texas
To
the Interests of Arena Resources, Inc.
Effective
December 31, 2009
For
Disclosure to the
Securities
and Exchange Commission
Williamson
Project 0.9394
|
Williamson
Petroleum Consultants, Inc. (Williamson) has reviewed the subject reserves and
economics projections prepared by Arena Resources, Inc. (Arena). Only proved
reserves were reviewed. The probable and possible reserves were not reviewed.
This review was authorized by Mr. Sherman Hyatt of Arena. The reviewed proved
properties represent a future net revenue discounted at 10.00 percent per annum
(DFNR) of $715,744.581 or 63.8 percent of the total proved DFNR. In preparing
these estimates, Arena used economic parameters and operating conditions
considered applicable as of December 31, 2009. Listings of all of the properties
Arena prepared oil and gas reserves estimates for are attached.
The
summaries of reserves and economics provided by Arena for this review are
attached. Following is a summary of the reserves and economics projections
prepared by Arena effective December 31, 2009 for the proved
properties:
| PROVED
DEVELOPED
PRODUCING
|
PROVED
DEVELOPED
NONPRODUCING
|
PROVED
UNDEVELOPED
|
TOTAL
PROVED
|
|
| Net Reserves to the Evaluated Interests: | ||||
| Oil/Condensate, MBBL | 18,445.488 | 2,699.418 | 38,570.609 | 59,715.512 |
| Gas, MMCF | 24,439.027 | 3,863.442 | 28,912.215 | 57,214.688 |
| Future Net Revenue, M$: | ||||
| Undiscounted | 737,258.625 | 133,203.500 | 1,405,425.125 | 2,275,886.750 |
| Discounted Per Annum at 10.00 Percent0 | 393,977.688 | 69,448.109 | 657,931.750 | 1,121,357.500 |
Note: Due
to rounding, Total Proved may not equal PDP + PDNP + PU
Arena
Resources, Inc.
Mr.
Sherman Hyatt
February
26, 2010
Page
2
Following
is a summary of reserves and economics prepared by Arena effective December 31,
2009 for the probable and possible properties:
|
PROBABLE
|
POSSIBLE
|
|
|
Net
Reserves to the Evaluated
Interests:
|
||
|
Oil/Condensate,
MBBL
|
8,231.901
|
17,007.777
|
|
Gas,
MMCF
|
3,920.921
|
23,319.984
|
|
Future
Net Revenue, M$:
|
||
|
Undiscounted
|
235,608.781
|
635,147.812
|
|
Discounted
Per Annum at 10.00 Percent
|
86,521.109
|
230,900.750
|
The
attached Definitions describe all categories of reserves.
In
performing this review, Williamson conducted an evaluation of the methods,
procedures, and data utilized by Arena in the preparation of the estimates of
reserves and associated future net revenue and performed tests and procedures
considered necessary to render the opinions set forth herein. Williamson
accepted without independent verification the accuracy and completeness of
information, data, and assumptions provided by Arena including and relating to,
but not limited to, oil and gas production, interests, oil and gas prices,
capital costs and lease operating expense. The data were presented in the
company's ARIES database and other prepared documents and were reviewed for
reasonableness. The source documents such as run statements, joint interest
billings, Form PRs, et cetera were not reviewed.
Williamson
reviewed production decline curves, maps, analogs, engineering and geologic
studies, and various other engineering data utilized by Arena in its forecast of
oil and gas reserves. No inspection of the properties was made as this was not
considered within the scope of this review. No investigation was made of any
environmental liabilities that might apply to the evaluated properties, and no
costs are included for any possible related expenses.
If, in
the course of the Williamson examination, something came to our attention that
brought into question the validity or sufficiency of any reviewed data provided
by Arena, Williamson did not rely on that data until any questions relating
thereto were resolved.
Approximately
72.4 percent of the total proved DFNR is concentrated in the FuhrmanMascho
Field, Andrews County, Texas.
Based on
our review, it is the opinion of Williamson that the estimates of the reviewed
oil and gas reserves and associated future net revenues prepared by Arena
effective December 31, 2009 are reasonable in the aggregate within established
audit tolerances of +10 percent and were prepared in accordance with generally
accepted petroleum engineering and evaluation principles as set forth in the
updated version of "Standards Pertaining to the Estimating and Auditing of Oil
and Gas Reserves Information" promulgated by the Society of Petroleum Engineers
and approved March 2007.
Arena
Resources, Inc.
Mr.
Sherman Hyatt
February
26, 2010
Page
3
It is
important to note that the estimation of oil and gas reserves is an inherently
uncertain process due to the limitations in the data accumulated, the technical
processes used, and the experience level of the engineering, geological, and
technical personnel. These reserves should be considered to be the judgments of
knowledgeable and qualified professionals and technicians but could change
significantly as the result of regulations and or market
conditions.
Williamson
is an independent consulting firm and does not own any interests in the oil and
gas properties covered by this review. No employee, officer, or director of
Williamson is an employee, officer, or director of Arena. Neither the employment
of nor the compensation received by Williamson is contingent upon the values
assigned to the properties covered by this review.
Mr. John
D. Savage is a registered professional engineer in the state of Texas and meets
the requirements regarding the qualifications, independence, objectivity, and
confidentiality as set forth in the "Standards Pertaining to the Estimating and
Auditing of Oil and Gas Reserves Information" promulgated by the Society of
Petroleum Engineers and approved March 2007.
It has
been a pleasure to serve you by preparing this engineering review. All related
data will be retained in our files and are available for your
review.
Yours
very truly,
|
WILLIAMSON
PETROLEUM CONSULTANTS, INC.
/s/
John D. Savage
John
D. Savage, P.E.
Executive
Vice President
JDS/chk
Attachments
|
 Williamson
Petroleum Consultants, Inc.
F-81
|