Arena Resources Inc., Tulsa, Okla., (NYSE: ARD) has acquired a property in Lea County, New Mexico, from an undisclosed seller for $10.3 million in cash.

The deal is valued at $8.55 per proved barrel of oil equivalent.

The property consists of 100% working interest (75% net revenue interest) in approximately 800 acres in proximity to the company’s East Hobbs San Andres unit. Arena’s engineering team has identified approximately 12 new drilling locations, with the potential to increase that number through additional in-fill drilling and development.

Gross production is approximately 100 barrels equivalent per day (70% oil).

Net proved reserves are 1.2 million barrels equivalent (50% proved developed producing).

Arena chief executive Phil Terry says, “This acquisition complements our East Hobbs unit and is consistent with our efforts to focus on the continued growth of our core assets. We will be very active the second half of this year in New Mexico with approximately 50 new development wells scheduled to be drilled, as well as additional re-entries of existing wells, conversion of some existing wells to water injectors in preparation for secondary recovery and continued infrastructure improvements.”