Arena Resources, Inc. Announces Reduction in 2008 Capital Expenditure Budget
Adds 6,400 Acres in Andrews County, Texas Through University Auction
Tulsa, Oklahoma — October 29, 2008 — Arena Resources, Inc. (NYSE-ARD)(“Arena”)(“Company”) announced today that management has reduced its estimated capital expenditure budget (“CAPEX”) for 2008 to $189 million, an approximate $59 million reduction from the $248 million announced in June 2008 due to dramatically reduced commodity prices and the uncertainty of the current economic environment.

Management has notified the two contract drilling rigs currently operating at the Company’s Fuhrman Mascho property in Andrews County, Texas, that their contracts will not be re-newed. Arena will continue to develop the property with two Company-owned drilling rigs. Fourth quarter projects will also include retaining one contract rig to drill four Yates gas wells and another to drill six wells in New Mexico, four of them being on the East Hobbs San Andres Unit. Management is confident that the Company can continue to increase production at an estimated 20-25% annual rate and proven reserves at 10-15%, while operating within existing cash flow. The reduction of funds will primarily affect other previously proposed development activity in New Mexico and Oklahoma scheduled over the remainder of 2008. In total, the Company has estimated the number of new development wells to be drilled in 2008 on all of its properties at 231 and re-fracs, including all workovers, at 85.

The Company also announced the addition of approximately 6,400 acres in Andrews County, Texas. The acreage, in close proximity to the Company’s Fuhrman Mascho properties, was acquired through the recently completed University of Texas System, University Lands Oil & Gas Lease auction, in which the Company was the successful bidder on 31 of the 34 tracts it submitted bids. The acreage represents additional development opportunities at all depths, and brings Arena’s overall acreage position in Andrews County to approximately 32,500 acres.

Mr. Phil Terry, President and CEO stated, “In today’s economic uncertainty, we feel it is of utmost importance to operate within estimated cash flow. We still retain excellent overall profit margins generated by our development activity but the recent reduction in commodity prices adversely affect our return on capital and project payout. In releasing the two contract rigs, we are confident we can continue to show excellent growth in annual production and proven reserves while working within cash flow. We currently have a cash reserve of over $70 million and no long-term debt. We are currently discussing increasing our current $150 million credit facility with our member banks and we are encouraged by the results of such initial discussions. We continue to aggressively seek additional acquisition opportunities that compliment our Permian Basin assets and we are in an excellent position to take advantage of any such potential.”