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Arena
Resources, Inc. Announces
Issuance of 1.15 Million Shares in Private Placement
Tulsa, Oklahoma — May 30, 2006 —
Arena Resources, Inc. (AMEX: ARD, ARD.WS) ("Arena")
("Company") today announced it has entered into definitive
agreements with institutional investors to sell 1,150,000
shares of the Company's common stock in a private placement
for $28.04 per share, a 5% discount to the Company's
closing price on the AMEX on Wednesday, May 24, 2006,
the pricing day. The securities sold have not been registered
under the Securities Act of 1933 or any state securities
law, and may not be offered or sold in the United States
absent registration or an applicable exemption from
registration. The net proceeds from the private placement,
after agents' fees, are approximately $30.3 million.
The funds will be used to bridge the deficit between
estimated 2006 cash flow and the Company's current 2006
CAPEX budget of $65 million, and will allow the Company
to keep 100% of its credit facility available.
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
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