Arena Resources Inc. (AMEX: ARD) has entered into definitive agreements with institutional investors to sell 1,150,000 shares of the company's common stock in a private placement for $28.04 per share, a 5% discount to the company's closing price on the AMEX on Wednesday, May
24, 2006, the pricing day. The securities sold have not been
registered under the Securities Act of 1933 or any state securities
law, and may not be offered or sold in the United States absent
registration or an applicable exemption from registration. The net
proceeds from the private placement, after agents' fees, are
approximately $30.3 million. The funds will be used to bridge the
deficit between estimated 2006 cash flow and the company's current
2006 CAPEX budget of $65 million, and will allow the company to keep
100% of its credit facility available.
Arena Resources Inc. is an oil and gas exploration, development
and production company with current operations in Texas, Oklahoma,
Kansas and New Mexico.