Arena Resources , Inc. Announces New Mexico Acquisition
Adds Estimated Proved Reserves of 1.2 million Barrels of Oil Equivalent
Tulsa, Oklahoma — June 5, 2008 — Arena Resources, Inc. (NYSE-ARD)(“Arena”)(“Company”) announced today that it has finalized the acquisition of a property located in Lea County, New Mexico for a purchase price of $10,265,000. The property was acquired using existing cash reserves with a closing date of June 3, 2008 and an effective date of June 1, 2008.

Property Information

The property consists of approximately 800 acres and is located in close proximity to the Company’s East Hobbs San Andres Unit acquired in May 2004. Arena will be the operator and have a 100% working interest and average net revenue interest in excess of 75%. The current gross production to the Company from the properties is approximately 100 BOE (Barrels of Oil Equivalent) per day and is over 70% oil. Arena’s engineering team has identified approximately twelve new drilling locations, with the potential to increase that number through additional in-fill drilling and development.

Reserve Estimates

The Company’s initial reserve estimates, as determined by internal engineering evaluations, indicate the properties have an estimated 1.2 million BOEs of proved reserves net to Arena. The proved reserves represent an estimated acquisition cost of $8.55 per BOE and are approximately 50% proved developed producing.     

Mr. Phil Terry, CEO of Arena stated, “This acquisition compliments our East Hobbs Unit and is consistent with our efforts to focus on the continued growth of our core assets. We will be very active the second half of this year in New Mexico with approximately 50 new development wells scheduled to be drilled, as well as additional re-entries of existing wells, conversion of some existing wells to water injectors in preparation for secondary recovery and continued infrastructure improvements.”