Arena Resources Inc. Announces Receipt of $10 Million in Private Investment Funds.

TULSA, Okla. -- Arena Resources Inc. (AMEX: ARD, ARD.WS) ("Arena" or the "company") today announced it has received a $10 million private equity investment from a small group of investors, some of whom are existing shareholders. The group of investors purchased 970,874 restricted shares of the company's common stock at a price of $10.30 per share, a 7.7% discount to the 30 day average closing price of the company's common stock immediately prior to the term sheet agreement date. The shares were placed directly by the company with net proceeds after expenses estimated to be $9.8 million. The funds will be used to eliminate the remaining $5 million outstanding long term debt on the company's bank credit facility and to fund an increase in the 2005 capital expenditure budget by approximately $4 million to $18.5 million.

Tim Rochford, Arena's president and CEO, commented, "The receipt of these funds will allow us to increase our capital expenditure budget for the remainder of the year. Specifically, on our Fuhrman-Mascho property we will increase the number of development wells to be drilled from 27 to 33, as well as increase the number of re-fracs from 12 to 20. It also allows us to pay off the remaining debt on our $50 million bank credit facility, giving us an immediate $35 million to use for future development or acquisition opportunities."

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.