Arena Resources Inc. Restates Financial Statements to Reflect Accounting Change Associated with Employee Options.TULSA, Okla. -- Arena Resources Inc. (AMEX AMEX See: American Stock Exchange : ARD Ard (ärd), in the Bible. 1 Son of Benjamin. 2 Benjamite, perhaps the same as (1.) An alternate form is Addar. ) ("Arena") ("company") announced today that it is restating its financial statements and amending its filings on Form 10-KSB for the years ended Dec. 31, 2003 and 2004, and on Form 10-Q Form 10-Q See 10-Q. for the three quarters ended Sept. 30, 2005, to reflect a change in how it accounts for non-cash compensation expenses associated with options granted to employees. The change essentially results in the company recognizing compensation expense related to any discount of the exercise price of the option from the market price of the stock at the date of the grant, over the period in which the option vests. The discount on all options granted through Dec. 31, 2004, has been 15%, and the vesting period has been five years. The effect of this change is to reduce net income after taxes by $139,355 (from $809,498 to $670,143) for the year ended Dec. 31, 2003, by $128,365 (from $2,580,017 to $2,451,652) for the year ended Dec. 31, 2004, and by $59,635 (from $6,505,433 to $6,445,798) for the nine months ended Sept. 30, 2005. The adjustment in diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of is $0.02 for each of the years ended Dec. 31, 2003 and 2004, and $0.01 for the nine months ended Sept. 30, 2005. About Arena Resources Inc. Arena Resources Inc. is an oil and gas exploration, development and production company with current operations in Texas, Oklahoma, Kansas and New Mexico New Mexico, state in the SW United States. At its northwestern corner are the so-called Four Corners, where Colorado, New Mexico, Arizona, and Utah meet at right angles; New Mexico is also bordered by Oklahoma (NE), Texas (E, S), and Mexico (S). . This release contains forward-looking statements within the meaning of the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 that involve a wide variety of risks and uncertainties, including, without limitations, statements with respect to the company's strategy, development program and prospects. Readers and investors are cautioned that the company's actual results may differ materially from those described in the forward-looking statements due to a number of factors, including, but not limited to, the company's ability to successfully drill and complete oil and/or gas wells on its properties, and acquire additional productive oil and/or gas properties, as well as general economic conditions both domestically and abroad and other factors that may be more fully described in additional documents made publicly available by the company. |
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