Arena Resources Inc. Announces $10.5 Million Texas Property Acquisition.

TULSA, Okla. -- Arena Resources Inc. (AMEX: ARD, ARD.WS) ("company") announced today that it has entered into a Purchase and Sale Agreement to acquire oil and natural gas properties located in West Texas for a purchase price of $10.55 million, comprised of $9.5 million cash and 150,000 restricted shares of the company's common stock, valued at $7.00 per share.

The Fuhrman-Mascho prospect, located in Andrews County, Texas, is the fifth acquisition by the company of a Permian Basin property located in this geographic area in the past 18 months. The property consists of 11,300 acres, 136 producing wells and net production of approximately 230 BOE per day. Arena will be the operator and have a 100% working interest and 75% net revenue interest. Management believes, based on its review of the property to be acquired and its experience in this geographic area, that there are substantial future development and exploitation enhancement opportunities available. The transaction is subject to certain closing conditions and is expected to close on or before Dec. 20, 2004, with an effective date of Dec. 1, 2004.

Lee Keeling & Associates Inc., an independent reservoir engineering firm, has reviewed Arena's estimates that the property to be acquired represents approximately 6,500,000 BOE (91% oil) of proved reserves net to Arena's interest including an estimated 130 proved undeveloped locations. Additionally, Arena has acquired through this acquisition the rights to the Yates gas formation covering more than 9,000 acres which management is currently evaluating for future development and exploration opportunities.

The company plans to finance $9.0 million of the planned acquisition through borrowings under its bank credit line which was recently increased to $25 million with an immediate borrowing base of $15 million.

Tim Rochford, president and CEO of Arena, stated, "This acquisition represents our largest to date in cost and, more importantly, in available development and exploitation opportunities. It also adds to our core Permian Basin properties base in West Texas and New Mexico and now gives us five properties in close proximity to our recently opened Hobbs, N.M., office. This acquisition should greatly contribute to our reserves and production growth in this area."

About Arena Resources Inc.

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.