East Hobbs Unit, Lea County, New Mexico – The first well in a six well developmental drilling program, the EHSAU #3, was drilled to a depth of approximately 4,600 feet. Evaluations of initial tests indicate five commercial pay-zones. Final casing is being set with initial production expected within two weeks. Management expects drilling to start on the second well within the next week with all six wells to be completed and placed in production by year-end. Following the successful workover of two existing wells in the third quarter which increased daily production by approximately 100 BOE's(Barrel of Oil Equivalents), management has identified five additional wells as workover candidates to be completed during the fourth quarter.

Auntie Em Unit, Haskell County, Kansas – Construction and installation has commenced on a seven and one-half mile gas transmission line which will allow two existing gas wells to be placed in production. Completion of the line is expected by the end of November. Management anticipates combined production from the two wells of 400-500 mcf per day based on initial tests. Arena plans on drilling the first of four proposed developmental wells on this lease, subject to drilling rig availability, prior to year-end.

Dodson Unit, Montague County, Texas – The company will initiate its developmental drilling program on this lease during October, 2004. The initial well is to be drilled to an approximate depth of 5,600 ft. (Ellenberger Formation). Core samples will be taken to update current available data on the lease, which has already been unitized, for a secondary recovery program (waterflood) to commence in the first quarter of 2005.

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09.30.04
Arena Resources, Inc. Provides Operations Update

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05.10.04
Arena Resources Completes New Mexico Lease Acquisition