Arena Resources, Inc. Announces Conversion of Preferred Shares
Tulsa, Oklahoma — August 20, 2002 — Arena Resources, Inc. (OTCBB: ARRI) ("Arena") Tuesday announced that under the provisions of its Class "A" cumulative convertible preferred stock ("Preferred"), 1,886,359 Preferred shares automatically converted into 1,886,359 shares of its common stock effective July 30, 2002.

The preferred stock was issued to investors of a private placement completed June 30, 2002, in which Arena received net proceeds of approximately $3 million.

Arena Resources Inc. is an oil and gas exploration, development and production company with current operations in Texas, Oklahoma and Kansas.

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