Arena Resources to Issue 1.15 Million Shares in Private Placement

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.