Arena Resources Announces Record Financial and Operational Results for Fourth Quarter and
Year End 2005
2005 Revenues Increase 205%
2005 Net Income Increases 286%
Tulsa, OK — March 17, 2006 — Arena Resources, Inc. (AMEX: ARD) ("Arena") announced today financial results for the fourth quarter and year ended December 31, 2005. Arena had net income of $3,014,884, a 249% increase, on oil and gas revenues of $9,362,003, a 215% increase, for the fourth quarter compared to net income of $865,097 on revenues of $2,972,346 for the fourth quarter ended December 31, 2004. For the year ended December 31, 2005, Arena had net income of $9,460,683, a 286% increase, on revenues of $25,843,077, a 205% increase, as compared to net income of $2,451,652 on revenues of $8,482,130 for the year ended December 31, 2004. Income attributable to common shares for the fourth quarter was $0.22 per diluted share compared to $0.09 for the fourth quarter ended December 31, 2004. For the year ended December 31, 2005, income attributable to common shares was $0.75 per diluted share compared to $0.28 per diluted share for the year ended December 31, 2004.   The increase in revenue is attributed to an increase in production, primarily due to development and acquisition activities, and an increase in commodity prices. Net income for the fourth quarter and the year 2005 included a pre-tax non-cash charge of $597,773 for warrants issued as part of a financing in July, 2005.

Cash provided by operating activities, before changes in working capital, increased to $18,594,370 or $1.48 per diluted share for the year ended December 31, 2005 from $5,085,918, or $0.59 per diluted share for the year ended December 31, 2004.   Earnings before interest, taxes, depletion and other non-cash items ("Adjusted EBITDA") was $18,823,994, as compared to $5,241,854 in 2004. (See accompanying table for a reconciliation of net income to adjusted EBITDA)

Total net production for the fourth quarter of 2005 was 172,386 BOE, as compared to 72,965 BOE for the same period in 2004, an increase of 136%.   Net production for the full year 2005 was 508,430 BOE, compared to 223,333 BOE in 2004, an increase of 127%.   The Company's average net daily production in December 2005 was approximately 2,050 BOE per day.

Proved reserves totaled approximately 30.2 million barrels of oil equivalents (BOE), a 42% increase over the 21.2 million BOE for the previous year. Future net revenues before income taxes, discounted at 10%, based on $55.00 per barrel of oil and $8.20 per Mcf of gas, were $682.9 million at year-end 2005. This compared to $302.4 million, using average prices of $39.00 per barrel of oil and $5.19 per Mcf of gas, for year-end 2004.

About Arena Resources, Inc.
Arena Resources, Inc. is an oil and gas exploration, development and production company with current operations in Texas, Oklahoma, Kansas and New Mexico.

This release contains forward-looking statements within the meaning of the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995 that involve a wide variety of risks and uncertainties, including, without limitations, statements with respect to the Company's strategy and prospects. Readers and investors are cautioned that the Company's actual results may differ materially from those described in the forward-looking statements due to a number of factors, including, but not limited to, the Company's ability to acquire productive oil and/or gas properties or to successfully drill and complete oil and/or gas wells on such properties, general economic conditions both domestically and abroad, and the conduct of business by the Company, and other factors that may be more fully described in additional documents set forth by the Company.

For further information contact:
K M Financial, Inc.
Bill Parsons
480-947-1589
k-m-financial@msn.com