Arena Resources, Inc. Announces Record Production in 2008 Third Quarter
Tulsa, Oklahoma — October 22, 2008 — Arena Resources, Inc. (NYSE-ARD)(“Arena”)(“Company”) today announced its operations update for the third quarter of 2008. During the third quarter, Arena drilled a total of 69 new wells, all of them being on its Fuhrman-Mascho lease in Andrews County, Texas. In addition, the Company re-stimulated 10 existing wells on its Fuhrman-Mascho lease.

Sales for the quarter ended September 30, 2008 were approximately 605,000 BOE (Barrel of Oil Equivalents), as compared to sales of 402,922 BOE for the same quarter in 2007, a 50% increase, and an 8% increase over the 558,484 BOE sold in the second quarter of 2008. Average net daily sales increased to approximately 6,576 BOEPD (Barrel of Oil Equivalents Per Day) in the third quarter 2008, as compared to 4,380 BOEPD in the third quarter of 2007, and 6,137 BOEPD in the second quarter of 2008. Sales were curtailed for thirteen days during the quarter ended September 30, 2008 as a result of gas processing plants along the Texas gulf coast being shut down in preparation for Hurricane Ike and resulted in the loss of approximately 13,000 BOE’s as gas was flared to allow for continued oil production in New Mexico and west Texas during that period. All of those wells are now back in full production.

In September, the Company made the announcement that it was opening an office in Midland, Texas. Mr. Will Porter, a native of Midland and the current president of the Permian Basin Landmen’s Association, will manage the office. This office, along with the Company’s established offices in Hobbs, New Mexico and Andrews, Texas, will greatly enhance the Company’s presence in the area as it pursues additional acquisition opportunities in the Permian Basin.

Mr. Phil Terry, CEO stated, “The third quarter of 2008 marks the sixteenth consecutive quarter of record production since starting our development program the latter half of 2004. We continued to drill a number of ten acre locations on our Fuhrman Mascho lease with excellent results. We have now had a full quarter with four drilling rigs and have seen our current production continue to ramp up to over 7,000 net BOEPD. As a result of current economic conditions and the continued drop in commodity prices, we are re-evaluating our development budget for the remainder of 2008 and 2009 to more conform to estimated future cash flows. We currently have a cash position of approximately $70 million and the availability of the full amount of our $150 million credit facility. We have historically experienced double-digit growth in both annual production and proven reserves and management is committed to the continued growth of the Company through the on-going development of our core properties.”

Third Quarter Operations Update
PERMIAN BASIN:
Fuhrman  Mascho, Andrews County, Texas - The Company drilled 69 new San Andres zone development wells in the third quarter of 2008. Sixty-two of the wells were completed and producing as of September 30, 2008, while the remaining seven were in various stages of completion. Additionally, 19 development wells which were drilled in the second quarter of 2008 were successfully completed and placed in production. The Company has now drilled 432 new San Andres development wells on this lease since initiating its developmental drilling program in mid-April, 2005. The Company maintained its 100% development drilling success rate.  Forty of the wells drilled in the third quarter were ten acre development wells with the remainder being a combination of twenty and forty acre development wells.  The Company performed a re-frac on 10 wells during the third quarter and now has re-fraced a total of 136 wells on this lease since initiating its re-frac program in 2005. Third quarter production increased approximately 48,000 barrels over the previous quarter in spite of  the loss of production due to gas sales curtailment associated with Hurricane Ike related gas plant shut-downs.

The Yates gas development program is proceeding according to schedule. The pipeline is scheduled for completion by mid-year, 2009. The Company will begin recompleting idle wellbores to Yates gas producers in conjunction with the completion of the pipeline and associated facilities. The fourth quarter capital budget has been revised to include the drilling of four PUD Yates gas wells.  The performance of the wells will provide needed reservoir data and aid in reserves determinations. 

East Hobbs Unit, Lea County, New Mexico – Third quarter production was less than the prior quarter due to curtailed gas sales associated with Hurricane Ike related gas plant shut-down. Third quarter operational activity involved work to convert an existing well to water injection.  The conversion will be completed in the fourth quarter along with drilling four PUD wells.

Humphrey Queen Unit, Langlie Mattix Queen Unit, S. Leonard Queen Unit; Lea County, New Mexico – Third quarter production increased over the previous quarter.  The increase is attributable to the successful results of four well clean-out operations performed late in the second quarter on the Humphrey Queen Unit. Two well workovers were completed on the S. Leonard Queen Unit in the third quarter.

North Benson Queen Unit, Eddy County, New Mexico – Third quarter production was less than the previous quarter.  The decrease was due to well down-time associated with normal well repairs. Two well workovers, as well as infrastructure improvements were completed in the third quarter.

McClay, Welch, Calmon and Red Lake Unit, Eddy County, New Mexico – Third quarter production was greater than the previous quarter. The increase is attributable to the McClay and Red Lake Unit.  The McClay increased due to a successful well workover performed late in the second quarter.  The Red Lake Unit production increased due to the success of seven well workovers performed in the third quarter.

Phillips Lea, Hale State, State 36 and Corbin 35, Lea County, New Mexico – Third quarter production increased from all leases as a result of well repairs and maintenance performed after the acquisition of the properties. One PUD well is scheduled to be drilled on both the Phillips Lea and Hale State properties in the fourth quarter.