Arena Resources Inc. Announces Letter of Intent on Texas Properties.

TULSA, Okla. -- Arena Resources Inc. (AMEX: ARD, ARD.WS) ("company")("Arena") announced today that it entered into a Letter of Intent on May 20, 2005, to acquire oil and natural gas properties located in west Texas for a purchase price of $1.2 million.

The properties, located in Andrews County, Texas, consist of approximately 720 acres, with net production of approximately 30 BOE per day from two formations, the Glorietta and San Andreas. The properties are contiguous to a portion of the company's Fuhrman-Mascho lease, which was acquired in December 2004. Arena will be the operator and have a 100% working interest on 480 acres and 15-25% working interest on the remaining 240 acres. The net revenue interest on the entire acreage is approximately 75%. Management believes, based on its review of the property to be acquired and its experience in this geographic area, that a number of future development and exploitation enhancement opportunities exist. The transaction is expected to close on or before June 30, 2005, with an effective date of June 1, 2005, subject to certain closing conditions.

The company plans to finance the planned acquisition through borrowings under its bank credit line which was recently increased to $50 million with an immediate borrowing base of $35 million.

Tim Rochford, president and CEO of Arena, stated, "This acquisition adds to our core Permian Basin properties base in west Texas and New Mexico, and complements the current drilling and development schedule on our Fuhrman-Mascho prospect by increasing our inventory of available drilling locations. It also reduces our operating costs as these properties include a commercial disposal well which we currently pay to utilize."

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.