Arena Resources Announces Second Quarter and Six Month 2003 Financial and Operating Results.

Business Editors

TULSA, Okla.--(BUSINESS WIRE)--Aug. 12, 2003

Arena Resources Inc. (AMEX: ARD) ("Arena") announced today financial results for the second quarter and six months ended June 30, 2003. Arena had net income of $205,652, or $.03 per share, on oil and gas revenues of $841,619 for the second quarter compared to a net income of $35,790 before preferred stock dividends on oil and gas revenues of $167,682 for the quarter ended June 30, 2002. The company reported net income of $385,958, or $.06 per share, on oil and gas revenues of $1,648,640 for the six-month period ended June 30, 2003, compared to net income of $55,868 before preferred stock dividends on oil and gas revenues of $311,013 for the six-month period ended June 30, 2002.

Net cash flow from operations for the six months ended June 30, 2003, was $686,310, compared to net cash flow of $137,847 for the same period in 2002.

As of June 30, 2003, the company had net working capital of $1,669,805 compared to $894,558 as of June 30, 2002.

Arena's chief executive officer, Tim Rochford, stated, "We are extremely proud of the results for the second quarter. We continue to seek out prospects with existing positive cash flow and the opportunity for further development. We firmly believe that the acquisition of properties with those criteria not only immediately enhances Arena's reserves and cash flow, but ultimately builds shareholder value."

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.

CONDENSED STATEMENTS OF OPERATIONS

                            Three Months Ended     Six Months Ended
                                  June 30,              June 30,
                              2003       2002       2003       2002
                          (Unaudited)(Unaudited)(Unaudited)(Unaudited)

Oil and Gas Revenues      $  841,649 $  167,682 $1,648,640 $  311,013

Costs and Operating
 Expenses
      Oil and gas
       production costs      281,546     49,516    523,618     96,072
      Oil and gas
       production taxes       57,374      8,247    111,324     15,475
      Depreciation,
       depletion and
       amortization           69,615     18,644    120,706     41,292
      General and
       administrative
       expense               120,451     55,485    264,082    102,306

       Total Costs and
        Operating Expenses   528,986    131,892  1,019,730    255,145

Other Income (Expense)
      Gain from change in
       fair value of put
       options                31,615          -     36,390          -
      Accretion expense       (7,843)         -    (12,624)         -
      Interest expense        (9,973)         -    (19,836)         -

       Net Other Expense      13,799          -      3,930          -

Income Before Provision
 for Income Taxes and
 Cumulative Effect of
  Change in Accounting
  Principle                  326,432     35,790    632,840     55,868

Provision for Deferred
 Income Taxes                120,780          -    235,069          -

Income Before Cumulative
 Effect of Change in
 Accounting Principle        205,652     35,790    397,771     55,868

Cumulative Effect of
 Change  in Accounting
 Principle                         -          -     11,813          -

Net Income                   205,652     35,790    385,958     55,868

Preferred Stock Dividends          -    171,451          -    211,157

Income (Loss) Attributable
 to Common Shares         $  205,652 $ (135,661)$  385,958 $ (155,289)

Basic Income (Loss) Per
 Common Share             $     0.03 $    (0.04)$     0.06 $    (0.04)
Diluted Income (Loss) Per
 Common Share             $     0.03 $    (0.04)$     0.06 $    (0.04)

Basic Weighted-Average
 Common Shares Outstanding 6,477,230  3,653,896  6,402,833  3,629,334
Diluted Weighted-Average
 Common Shares Outstanding 6,970,682  3,653,896  6,702,843  3,629,334


CONSOLIDATED STATEMENT OF
 CASH FLOWS

Cash Flow provided by
 operating activities                           $  686,310 $  137,847


                                                 June 30,    Dec. 31,
                                                   2003        2002
CONSOLIDATED BALANCE SHEET DATA                 (Unaudited) (Audited)

                 Total Assets                   $8,273,629 $6,050,493
                 Long-Term Debt                 $  400,000 $  400,000
                 Total
                  Stockholders'
                  Equity                        $6,780,000 $5,124,837