Arena's Acquisition in Permian Basin: Points to Ponder

* Spend $0.36 per share and increase value by $16.20
* Shareholders receive value that is 45X greater than the cost.
* Original acreage on Fuhrman-Mascho was 12,000 acres; Acquisition increases property size 5,000 acres to 17,000. This represents an increase of over 41%.
* Arena will be the operator and have an average working interest of 97% and average net revenue interest of 74% in these properties; Original sections of F-M have working interest of 100% and net revenue interest of 75%
* New sections of Fuhrman-Mascho will reduce ARD costs to develop by 3% as a result of only a 1% reduction in revenue. (See bullet point above.) ARD continues to emphasize being the low cost operator.
* The Leases are contiguous to the Company's Fuhrman-Mascho lease acquired in December 2004. This is a smart acquisition that not only adds value via increased acreage and proved reserves but also enhances value of pre-existing F-M property as a result of location.
* Arena's engineering team has identified 90 new drilling locations on 20 acre spacing. How many drilling locations are available with 10 acre spacing?