Arena Resources Announces Financial and Operational Results for Fourth Quarter and Year End 2006.

2006 Revenues Increase 131%

2006 Net Income Increases 146%

TULSA, Okla. -- Arena Resources, Inc. (NYSE:ARD) ("Arena") announced today financial results for the fourth quarter and year ended December 31, 2006. Arena had net income of $5,233,244, a 74% increase, on oil and gas revenues of $16,496,794, a 76% increase, for the fourth quarter compared to net income of $3,014,884 on revenues of $9,362,003 for the fourth quarter ended December 31, 2005. For the year ended December 31, 2006, Arena had net income of $23,267,968 a 146% increase, on revenues of $59,760,117 a 131% increase, as compared to net income of $9,460,683 on revenues of $25,843,077 for the year ended December 31, 2005. Income attributable to common shares for the fourth quarter was $0.34 per diluted share compared to $0.22 for the fourth quarter ended December 31, 2005. For the year ended December 31, 2006, income attributable to common shares was $1.55 per diluted share compared to $0.75 per diluted share for the year ended December 31, 2005. The increase in revenue is attributed to an increase in production, primarily due to development activities and an increase in commodity prices. Net income for the years 2006 and 2005 each included pre-tax non-cash charges of $785,598 and $597,773 respectively, for warrants issued as part of a financing in July, 2005.

Cash provided by operating activities, before changes in working capital, increased to $46,954,906, or $3.13 per diluted share for the year ended December 31, 2006 from $18,594,370, or $1.48 per diluted share for the year ended December 31, 2005. Earnings before interest, taxes, depletion and other non-cash items ("Adjusted EBITDA") was $47,079,741, as compared to $18,823,994 in 2005. (See accompanying table for a reconciliation of net income to adjusted EBITDA).

Total net sales production for the fourth quarter of 2006 was 331,200 BOE, as compared to 172,386 BOE for the same period in 2005, an increase of 92%. Net production for the full year 2006 was 1,065,613 BOE, compared to 508,430 BOE in 2005, an increase of 110%. The Company's average net daily sales production in the fourth quarter of 2006 was approximately 3,600 BOE per day, as compared to 1,844 BOE per day in 2005.

Proved reserves totaled approximately 43.1 million barrels of oil equivalents (BOE), a 43% increase over the 30.2 million BOE for the previous year. Future net revenues before income taxes, discounted at 10%, based on average prices of $54.21 per barrel of oil and $5.94 per Mcf of gas, were $847.7 million at year-end 2006. This compared to $682.9 million, using average prices of $55.00 per barrel of oil and $8.20 per Mcf of gas, for year-end 2005.

"2006 proved to be a tremendous year for us," said Tim Rochford, Chief Executive Officer. "This truly was a year of continued growth through the internal development of our existing assets and the acquisition of three properties that are contiguous to our Fuhrman-Mascho lease. We currently have identified over 1,200 drilling locations on over 60,000 acres and will continue to look for acquisitions that either complement our existing properties or create new core areas."

Non-GAAP Financial Measures:

Earnings for the three months ended December 31, 2006 include a non-cash charge for stock based compensation of $240,192. Earnings for the year ended December 31, 2006 include a non-cash charge for stock based compensation of $897,111 and a nonrecurring non-cash charge of $785,598 for warrants issued as part of a financing in July, 2005. Excluding such items, the Company's earnings would have been $1.62 per diluted share for the year ended December 31, 2006. The Company believes results excluding these items are more comparable to estimates provided by security analysts and, therefore, are useful in evaluating operational trends of the Company and its performance, compared to other similarly situated oil and gas producing companies.

(1) Cash Flow from Operations is a non-GAAP financial measure that represents "Net Cash Provided By Operating Activities" adjusted for the change in operating assets and liabilities. See below for a reconciliation of the related amounts.

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

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