A compact array system of small buoys is used for wave energy extraction. To evaluate the performance of this system, hydrodynamic analysis is carried out in regular waves using the higher order boundary element method. The motion response of each buoy is calculated considering hydrodynamic interactions caused by other buoys. The effect of energy extraction device is modeled as a linear damping load. The efficiencies of energy conversion are compared using the various sizes and arrangements of the array system and the damping coefficients for energy extraction. The increase in size or the packing ratio of the system gives better efficiency. However, the wave condition and the cost for the system should be considered to optimize performance from the perspective of engineering and economics. The proposed nondimensionalized damping coefficient for energy extraction is 0.1~0.5.