Arena Resources, Inc. Announces Record 2007 Fourth Quarter, Annual Production and Initial Capital Expenditure Budget for 2008
Tulsa, Oklahoma — January 31, 2008 — Arena Resources, Inc. (NYSE-ARD)(“Arena”)(“Company”) today announced its operations update for the fourth quarter of 2007. During the fourth quarter, Arena drilled a total of 49 new wells; 48 wells on its Fuhrman-Mascho lease in Andrews County, Texas, and one well on its Y-6 lease in Fisher County, Texas.  In addition, the Company re-stimulated three existing wells on its Fuhrman-Mascho lease. The results of this drilling activity are described on a property-by-property basis below.

Sales for the quarter ended December 31, 2007 were approximately 425,000 BOE (Barrel of Oil Equivalents), as compared to sales of 331,200 BOE for the same quarter in 2006, a 28% increase, and a 5% increase over the 402,982 BOE sold in the third quarter of 2007. Total production for the fourth quarter was approximately 435,000 BOE. Total sales production for 2007 was approximately 1,550,000 BOE, as compared to 1,065,613 BOE in 2006, a 45% increase. Average net daily sales increased to approximately 4,620 BOEPD in the fourth quarter 2007, as compared to 3,600 BOEPD in the fourth quarter of 2006, and 4,380 BOEPD in the third quarter of 2007.

In 2007, the Company announced property lease acquisitions of over 13,000 acres for approximately $55.5 million. All of the leases are located in West Texas and Southeast New Mexico and are near, or contiguous to the Company’s existing Permian Basin assets. The current net production to the Company from the leases is approximately 400 BOE per day.  The Company’s internal reserve estimates indicate the leases have approximately 13 million BOE of proved reserves net to Arena.  This represents an estimated cost of $4.25 per BOE.

The Company also announced its initial capital expenditure budget (“CAPEX”) of $218 million for 2008, an 88% increase over the estimated $116 million spent on the development of Company properties in 2007. The budget targets 275 new wells to be drilled, 222 of them on its Fuhrman-Mascho lease in Andrews County, Texas, approximately 65 re-entries of existing wells, installation of water supply lines and equipment, conversion of existing wells into water injectors,  general infrastructure upgrades and re-completion of 90 existing well bores and installation of a gas gathering system for Yates gas production. The Company currently anticipates the 2008 CAPEX budget will be funded through cash flow from operations and the Company’s $150 million credit facility. The Company continues to look for acquisition opportunities but has made no provision in its initial 2008 budget for any acquisitions.

The 2008 CAPEX budget is subject to change based on market conditions, commodity price changes, rig availability, drilling results, possible acquisition opportunities and general operational results.