Arena Resources Reports 2002 Results.Energy Editors/Business Editors TULSA, Okla.--(BUSINESS WIRE)--March 10, 2003 Arena Resources Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : ARRI) ("Arena") announced today financial results for the year ended Dec. 31, 2002. Arena had net income of $402,694 before preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. dividends on oil and gas revenues of $1,657,037 for the year, compared to $18,165 on revenues of $311,733 for the year ended Dec. 31, 2001. Net loss for the year after preferred stock dividends of $798,018, which includes non-cash dividends of $523,429, was $395,324 or $0.09 per share compared to a loss of $44,927 or $0.01 per share for the year ended Dec. 31, 2001. All preferred stock was converted to common stock during the third quarter of 2002. Positive cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses increased to $570,748 for the year ended Dec. 31, 2002, from $84,023 for the year ended Dec. 31, 2001. Proved reserves proved reserves The quantity of minerals expected to be recoverable under current economic and operating conditions. The amount of proved reserves is important in valuing the stock of a company with significant holdings in natural resources. totaled more than 6,500,000 barrel of oil equivalents (BOE BOE Based on Experience BOE Board of Education BOE BoletÃn Oficial del Estado (Spanish) BOE Bank of England BOE Board of Equalization BOE Board of Elections BOE Barrel of Oil Equivalent BOE Bind on Equip ), compared to 990,000 BOE for the previous year. Future net revenues, both undiscounted and discounted 10 percent, based on $24 per BOE were $112,391,419 and $62,958,528, respectively, at year end. Arena Resources Inc. is an oil and gas exploration, development and production company with current operations in Texas, Oklahoma and Kansas. 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 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 acquire productive oil and/or gas properties or to successfully drill and complete oil and/or gas wells on such properties, general economic conditions both domestically and abroad, and the conduct of business by the company, and other factors that may be more fully described in additional documents set forth by the company. |
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