Aspen signed an agreement with Odessa-Ector Power Partners, a wholly owned subsidiary of PSEG Texas, which in turn is a subsidiary of Public Service Enterprise Group (PSEG), that will lead to the construction of a dedicated pipeline to the PSEG Texas 1,000MW energy generation facility just outside Odessa, Texas, which can consume a gas blend containing Yates formation gas without removing the excess nitrogen.
Arena’s Fuhrman Mascho properties comprise in excess of 22,000 acres. The company initiated a development program at the Fuhrman Mascho in April 2005 and has currently drilled approximately 245 wells to a deeper, oil bearing formation at approximately 4,800 feet.
Tim Rochford, CEO of Arena Resources, said: This agreement provides us the opportunity to significantly improve the economics of our Fuhrman Mascho properties by providing a very favorable market for the Yates gas with limited cost to Arena. In preparation for the arrival of the pipeline, we have begun pressure testing the integrity of the estimated 100 existing idle well bores, which we have identified as potential Yates wells through recompletion, and are pleased with the results to date.
