Arena Resources to Acquire New Mexico Prospect

Arena Resources has signed a Letter of Intent for the acquisition of a mineral lease located in Lea County, N.M., subject to the completion of due diligence and execution of a definitive agreement.

If successful, management anticipates the transaction will represent the company's most significant acquisition to date.

The effective date of the acquisition will be March 1, 2004, with definitive documents scheduled to be finalized on or before May 7, 2004.

Arena Resources Inc. is an oil and gas exploration, development and production company with current operations in Texas, Oklahoma, Kansas and New Mexico.