Arena Resources, Inc. Announces Initial Closing on Private Placement
Tulsa, Oklahoma — July 3, 2001 — Arena Resources, Inc. (OTCBB: ARRI) ("Arena") today announced the initial closing of its private placement being offered to accredited investors only. The offering consists of a minimum of 300,000 shares ($525,000) and a maximum of 2,000,000 shares ($3,500,000) of 10% Redeemable Cumulative Preferred Stock of Arena at $1.75 per share.

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.

Contact: K M Financial, Inc.
Bill Parsons
480-947-1589