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Arena Resources, Inc. Revises Reserve
Estimates
Tulsa, Oklahoma — July 27, 2004 — Arena Resources,
Inc. (AMEX: ARD) ("Arena") Tulsa, announced today that
it has amended its Form 10-KSB to reflect a reduction
in its estimated total proved oil and natural gas reserves
as of December 31, 2003 to a total of 7.61 million barrels
of oil equivalent (BOE). This reduction is a result
of removing approximately 1.9 million BOE of proved
undeveloped reserves from the Dodson lease in Montague
County, Texas, from a proved category.
The revised present value, discounted at 10%, of the
future net revenues before income taxes ("PV-10") of
the Company's proved oil and gas reserves was $66.5
million as of December 31, 2003, using average prices
of $29.25 per barrel of oil and $3.46 per Mcf for natural
gas.
Arena also announced that it has adjusted its internal
estimate of proved reserves to 3 million BOE on the
East Hobbs Unit in Lea County, New Mexico acquired on
May 7, 2004. This revision results from a reduction
of 3.4 million BOE of proved reserves. Following this
reduction, Arena's revised PV-10 for the East Hobbs
Unit is now $38.7 million.
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
Jim Drewitz, Investor Relations
Jdrewitz@comcast.net
972-355-6070
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