Arena Resources Sees Record 3Q06 Production

Arena Resources says during the third quarter the company drilled a total of 36 new wells; 27 wells on its Fuhrman-Mascho lease in Andrews County, Texas, five wells on its East Hobbs lease in Lea County, New Mexico, two wells on its Seven Rivers Queen lease in Lea County, New Mexico and one well each on its Eva South lease in Texas County, Oklahoma, and Ona Morrow lease in Texas County, Oklahoma. In addition, the Company re-stimulated 13 existing wells on its Fuhrman-Mascho lease and five wells on its Seven Rivers Queen lease.

Production for the quarter ended September 30, 2006 was approximately 295,000 BOE, as compared to production of 141,205 BOE for the same quarter in 2005, a 109% increase, and a 22% increase over the 241,060 BOE produced in the second quarter of 2006. Average net daily production increased from 2,637 BOEPD in the second quarter of 2006 to approximately 3,210 BOEPD in the third quarter. Oil and gas revenues for the third quarter of 2006 are estimated to be $17.9 million, as compared to $7.9 million for the same period in 2005, a 126% increase, and a 22% increase over the $14.69 million generated in the second quarter of 2006.

Mr. Tim Rochford, President & CEO stated, "This is the first full quarter having two drilling rigs working full-time on our Fuhrman-Mascho lease. We are excited with the results and believe, with our inventory of drilling locations, we can continue to experience similar progress on this lease in future quarters. We will continue to develop our New Mexico and Kansas leases as well as drilling a number of new development wells in Oklahoma. As we drill these wells we will not only increase production and cash flow, but add new reserves as well. We have the full amount of our credit facility available for acquisitions as we continue to explore numerous opportunities."

Third Quarter Operations Update

PERMIAN BASIN:

Fuhrman - Mascho, Andrews County, Texas - The Company drilled 27 new development wells in the third quarter. Twenty-three wells have been completed and placed in production and the remaining four are in various stages of completion. Additionally, three development wells which were drilled in the second quarter were successfully completed and placed in production. The Company has now drilled a total of 99 new development wells with a 100% success rate since initiating its developmental drilling program in mid-April, 2005. The Company performed a re-frac on 13 wells during the third quarter and has now re-fraced 39 wells in 2006 and a total of 61 wells on this lease since initiating its development program. The Company has two drilling rigs operating full-time and has estimated it will drill 25 new development wells and re-frac 13 existing wells in the fourth quarter.

East Hobbs Unit, Lea County, New Mexico - The Company drilled five new development wells in the third quarter and plans on converting eight more existing wells into water injectors in the fourth quarter as part of its overall development program.

Seven Rivers Queen, Lea County, New Mexico - The Company drilled two new development wells and re-fraced five existing wells in the third quarter. In addition, one well drilled in the second quarter was successfully completed and placed in production. The Company plans on drilling four additional development wells and re-frac two existing wells in the fourth quarter.

KANSAS:

Auntie Em, Gray County, Kansas - Four development wells drilled in the second quarter were successfully completed and placed in production in the third quarter. With the addition of the four new wells, there are a total of nine producing wells on this lease with another 30+ potential drilling locations on 320 acre spacing. The Company currently plans on drilling four additional wells in the fourth quarter. One of the wells is scheduled to be a deep test to a lower zone at 5,000+ feet.

Syracuse Prospect, Hamilton County, Kansas - Two exploratory wells drilled in the second quarter are currently being evaluated. The two wells were drilled as part of a joint venture the Company has entered into with another Tulsa-based energy company. The partnership plans to drill three additional wells in the fourth quarter. One of the wells to be drilled is scheduled to be a deep test to a lower zone at 5,000+ feet.

OKLAHOMA:

Eva South, Texas County, Oklahoma - One development well was drilled and is currently being readied for production. One additional well is scheduled to be drilled in the fourth quarter.

Ona Morrow, Texas County, Oklahoma - One development well was drilled and is currently being readied for production. One additional well is scheduled to be drilled in the fourth quarter.

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