The reduced revenue and net income were due to significant decreases in commodity prices between periods, partially offset by higher production. Arena's total production for the quarter ended March 31, 2009 was 568,053 BOEs (Barrel of oil equivalents). This represents a 10% increase over the same three-month period in 2008. For the three months ended March 31, 2009, oil sales volume increased to 489,249 barrels, compared to 453,056 barrels for the same period in 2008, an 8% increase, and gas sales volume increased to 472,823 MCF (thousand cubic feet), compared to 383,914 MCF for the same period in 2008, a 23% increase. The average commodity prices received by Arena were $36.89 per barrel of oil, a 60% decrease from $92.10 per barrel of oil received for the quarter ended March 31, 2008, and $4.54 per MCF of natural gas, a 51% decrease from the $9.34 per MCF of natural gas received for the same period in 2008.

Lease operating expenses, including production taxes, for the three months ended March 31, 2009 were $9.34 per BOE, an 8% decrease from the prior year. Depreciation, depletion and amortization costs increased 7% to $12.73 per BOE. General and administrative costs, which included a $1,329,317 charge for stock based compensation, were $4.71 per BOE, a 7% decrease, as compared to $5.08 per BOE in 2008, which included a $1,760,812 charge for stock based compensation.

Net cash flow from operations for the three months ended March 31, 2009 was $18,920,108 or $0.49 per diluted share, compared to net cash flow of $37,045,987 or $1.02 per diluted share for the same period in 2008 (1).

Arena also announced that its current credit facility had been extended for 90 days effective April 15, 2009. The Company chose to decrease the borrowing base of the extended facility to $75 million while finalizing a new facility which is expected to be in place within 30 days. The new facility is expected to have an immediate borrowing base of $75 million with an accordion feature which would allow for expansion of the borrowing base to $150 million. Mr. Tim Rochford, Chairman of the Board, stated, "Based on our increased proven reserve base for 2008, the Company received term sheets from several lending institutions proposing to expand our current credit facility from $150 million to $200 million. Management chose not to accept any of the proposed facilities because of the associated fees and expenses. We felt that in this current economic environment it would be prudent to choose a more flexible structure which would allow us to maintain the ability to be proactive in seeking acquisition opportunities while being sensitive to the overall financial costs and our cash position, which currently exceeds $50 million."

Operations:

During the first quarter of 2009, the Company drilled 20 new San Andres zone development wells at its Fuhrman-Mascho property in Andrews County, Texas. Thirteen of the wells were completed and producing as of March 31, 2009, while the remaining seven were in various stages of completion. Additionally, seven development wells which were drilled in the fourth quarter of 2008 were successfully completed and placed in production. The Company has now drilled 497 new San Andres development wells on this lease since initiating its developmental drilling program in mid-April 2005, and continued its 100% development drilling success rate. The Company had one drilling rig in operation, a Company-owned rig, and it is estimated that this rig will drill a total of 80 San Andres zone development wells in 2009. The Company drilled four Yates gas wells late in 2008 which were completed in the first quarter of 2009. Two of the wells have been completed and are now producing. The wells' initial potentials and production are encouraging and consistent with the Company's pre-drilling expectations. The other two wells are now being tested. The Company continued to test and evaluate existing well bores in preparation of the Yates pipeline completion.

Arena's President and Chief Executive Officer, Mr. Phil Terry, stated, "The Company is committed to funding property development and operations with existing cash flow. We were successful in this effort in the first quarter of 2009. We will continue to concentrate our Fuhrman-Mascho drilling in areas that offer the greatest production and reserves potential. We have also been successful in reducing drilling and completion costs associated with our Fuhrman-Mascho development program. The cost of drilling and completing a well at Fuhrman-Mascho is now under $480,000 compared to $647,000 in the fourth quarter of 2008. First quarter sales were adversely affected due to the reduction of drilling activity. First quarter sales were also significantly reduced due to our Fuhrman-Mascho natural gas purchaser repeatedly shutting in their system due to mechanical failure and maintenance requirements. We experienced 64 days affecting all or portions of our Fuhrman-Mascho operation in the first quarter. We estimate that over 20,000 BOE sales were lost as a result of the system failures. We are currently accelerating our activity related to the Yates gas development program. The pipeline is almost complete and should be fully operational by the end of May. We anticipate commencing our Yates production in early June, approximately 30 days ahead of our original schedule. Yesterday, we announced a restructured credit facility which is expected to be in place within 30 days and the acceleration of our San Andres zone development program by placing our second Company-owned drilling rig into operation at our Fuhrman-Mascho. It is anticipated to be in operation by early June. This will increase the number of new development wells to be drilled on this property from approximately 80 to an estimated 120. We also announced the monetization of our current hedging component and the implementation of a new one, both effective June 1. By taking these steps, we will have approximately $65 million in cash, a restructured credit facility with an immediate borrowing base of $75 million and an accordion feature which could provide up to an additional $75 million if necessary. We are confident in our ability to continue to manage our growth within anticipated cash flow while positioned to take advantage of potential acquisition opportunities."

Non-GAAP Financial Measures:

Earnings for the first quarter 2009 include a non-cash charge for stock based compensation of $1,329,317. Excluding such item, the Company's earnings would have been $0.20 per diluted share. The Company believes results excluding these items are more comparable to estimates provided by security analysts and, therefore, are useful in evaluating operational trends of the Company and its performance, compared to other similarly situated oil and gas producing companies.

  (1)    Cash Flow from Operations is a non-GAAP financial measure that represents "Net Cash Provided By Operating Activities" adjusted for the change in operating assets and liabilities. See below for a reconciliation of the related amounts.    -------------------------------------------------------------------------------  

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.

  ARENA RESOURCES, INC.