Arena Resources Announces $10 Million New Mexico Lease Acquisition.

Business Editors

TULSA, Okla.--(BUSINESS WIRE)--April 23, 2004

Arena Resources Inc. (AMEX: ARD) ("Arena") ("the company") announced today it has entered into a definitive agreement to acquire an 82% working interest, 67.5% net revenue interest in a mineral lease located in Lea County, N.M. for a cash purchase price of $10,136,000. Funding will be provided through the company's bank credit facility.

The East Hobbs San Andres Unit consists of approximately 920 acres with existing oil and gas production from 19 wells, positive cash flow and additional developmental opportunities. Preliminary engineering reports estimate Arena's interest of the total proven reserves to be in excess of 6.4 million barrel of oil equivalents (BOEs) with present value of reserves, discounted 10% (PV-10) of approximately $73 million and net daily production of approximately 225 BOEs.

Arena management is currently performing its final due diligence with the intent to finalize the acquisition on or before May 7, 2004, with an effective date of March 1, 2004.

Tim Rochford, Arena's chief executive officer, stated, "This property represents our single largest acquisition to date in terms of daily production, proven reserves and future net revenues and is located in close proximity to the three lease acquisitions we made in 2003. Based on our preliminary engineering reports, the company, with this acquisition, will have net daily production of approximately 700 BOEs, proven reserves in excess of 15.9 million BOEs and PV-10 of over $165 million. This will bring the company's net asset value to approximately $21.75 per share."

Rochford further stated, "In addition to a drilling program to be commenced on this property this year, management feels that daily production can be increased immediately through existing well behind-the-pipe opportunities."

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.