Sales for the quarter ended March 31, 2008 were approximately 510,000 BOE (Barrel of Oil Equivalents), as compared to sales of 336,694 BOE for the same quarter in 2007, a 51% increase, and a 15% increase over the 441,632 BOE sold in the fourth quarter of 2007. Average net daily sales increased to approximately 5,600 BOEPD (Barrel of Oil Equivalents Per Day) in the first quarter 2008, as compared to 3,741 BOEPD in the first quarter of 2007, and 4,620 BOEPD in the fourth quarter of 2007.

Mr. Tim Rochford, CEO stated, “During the first quarter we experienced significant production increases on our Fuhrman Macho lease as a result of a third drilling rig which commenced activities in November 2007. With over 1,600 drilling locations on this lease, we continue to evaluate the possibility of adding a fourth rig. In the second quarter we will bring an additional contract rig into both New Mexico and Oklahoma as we begin our 2008 development programs on leases in those states. We continue to evaluate acquisition opportunities, concentrating on those that compliment our existing assets.”

First Quarter Operations Update

PERMIAN BASIN:
Fuhrman  Mascho, Andrews County, Texas - The Company drilled 54 new San Andres zone development wells in the first quarter of 2008. Forty of the wells were completed and producing as of March 31, 2008, while the remaining 14 were in various stages of completion. Additionally, 14 development wells which were drilled in the fourth quarter of 2007 were successfully completed and placed in production. The Company has now drilled 310 new San Andres development wells on this lease since initiating its developmental drilling program in mid-April, 2005. The Company maintained its 100% development drilling success rate.  Nineteen of the wells drilled in the first quarter were ten acre development wells with the remainder being twenty acre development wells.  The Company performed a re-frac on ten wells during the first quarter and now has re-fraced a total of 114 wells on this lease since initiating its re-frac program in 2005 with 30 additional wells scheduled to be re-fraced in 2008. The Company has three drilling rigs operating full-time and has estimated it will drill a total of 220 new 40, 20, and 10 acre spacing San Andres zone development wells in 2008, and will also drill two Clearfork zone development wells, currently scheduled for the second quarter.  

Y6, Fisher County, Texas - The Company drilled one development well in the first quarter of 2008 which is in the process of being completed. One development well drilled in the fourth quarter of 2007 is also in the process of being completed. The Company plans on drilling two additional development wells in the second quarter and convert three existing  wells to water injection.

East Hobbs Unit, Lea County, New Mexico – The Company plans to convert five existing wells to water injection in the second and third quarters and drill two new development wells in the second quarter.

Seven Rivers Queen, Lea County, New Mexico – The Company continued lease infrastructure improvements in the first quarter of 2008 in preparation for the drilling of six new development wells and the re-frac of ten existing wells in the second half of 2008.  

Humphrey Queen Unit, Langlie Mattix Queen Unit, S. Leonard Queen Unit; Lea County, New Mexico – The Company performed workovers on four existing wells on these leases in the first quarter, as well as general infrastructure improvements. Six new development wells are planned for the second quarter.

KANSAS:
Auntie Em, Gray County, Kansas – The Company will not schedule 2008 development drilling until a gas curtailment issue is resolved.

OKLAHOMA:
Ona Morrow, Texas County, Oklahoma – The Company continued to make lease infrastructure improvements to the injection water supply system in the first quarter of 2008 and plans to drill three development wells in the second quarter.

Midwell, Cimarron County, Oklahoma – Lease infrastructure improvements to the injection water supply system and battery equipment continued in the first quarter of 2008. In the second half of 2008, the Company plans to drill two development wells, convert four existing wells to water injectors and complete the injection water supply system and general infrastructure upgrades.

Hanes, Cimarron County, Oklahoma – The Company continued infrastructure improvements to the injection water supply system in the first quarter of 2008 and plans to drill one development well, convert one existing well to a water injector, and continue to upgrade infrastructure in the second and third quarters of 2008.

Eva South, Texas County, Oklahoma – The Company plans to drill two development wells and convert one existing well to a water injector in the second quarter.

............................................
10.06.08
Arena Resources, Inc. Selected
as the Fastest Growing
Company of 2008 by
Fortune Magazine

............................................
05.29.08
Arena Resources, Inc.
Announces Pricing of Public
Common Stock Offering

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03.13.08
Arena Resources Announces
Financial and Operational
Results for Fourth Quarter
and Year End 2007