Arena Resources Inc. reported unaudited earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company reported oil and gas revenues of $36,060,878 compared to $68,412,686 for the quarter ended September 30, 2008, a 47% decrease. Net income was $12,113,026 or $0.31 per fully diluted share, compared to net income of $26,922,966 or $0.69 per fully diluted share for the same period in 2008, a 55% decrease. Income before provision for income taxes was $19,156,519 against $42,734,867 for the same period a year earlier. Net cash flow from operations was $29,351,488 or $0.75 per fully diluted share compared with $54,502,204 or $1.40 per fully diluted share for the same period a year earlier. The revenue decrease for the three month period ended September 30, 2009 was due to significant decreases in commodity prices and a slight decrease in oil production volumes partially offset by higher natural gas volumes. Arena's total sales production for the quarter ended September 30, 2009 was 612,609 BOEs (Barrel of Oil Equivalents). This represents a 1% decrease over the same three month period in 2008 and a 12% increase over the second quarter of 2009. For the nine month period ended September 30, 2009, the company reported oil and gas revenues of $83,890,733 compared to oil and gas revenues of $175,884,359 for the nine month period ended September 30, 2008, a 52% decrease. Net income for the nine month period ended September 30, 2009 was $33,014,540 or $0.85 per fully diluted share, compared to net income of $70,035,710 or $1.87 per fully diluted share for the same period in 2008, a 53% decrease. Income before provision for income taxes was $52,333,526 against $11,167,794 for the same period a year earlier. Net cash flow from operations was $79,910,629 or $2.05 per fully diluted share compared with $140,042,188 or $3.73 per fully diluted share for the same period a year earlier. Net cash provided by operating activities was $77,212,801 against $142,458,787 for the same period a year earlier. Purchase and development of oil and gas properties was $65,362,425 compared to $151,469,679 for the same period a year ago. Purchase of inventory for property development was $4,261,467, against $1,392,728 for the same period last year. Purchase of buildings, drilling rigs & equipment was $364,878, against $1,350,237 for the same period last year. Adjusted EBITDA were $79,231,983 compared to $140,351,889 for the same period a year ago.

Arena Resources Inc. said that the company will continue to look for acquisitions. Phil Terry, Arena Resources President and CEO said, “The Company will not recomplete or drill any Yates wells during the quarter due to current Yates gas prices however we will continue to secure Yates rights in the area in anticipation of higher future prices and we will look for opportunities to acquire Yates production at current prices. We are also evaluating deeper potential on our Fuhrman Mascho leasehold. We will drill two Fuhrman Mascho wells in quarter four to evaluate the deeper clearfort zones in areas where we have established St. Andrews and uphold zones. We will also continue to evaluate and identify other such drilling opportunities in 2010 and we will also continue to evaluate acquisition opportunities near our Fuhrman Mascho assets and in the other portions of the Permian basin, or other areas where opportunities may present themselves.”

Arena Resources Inc. announced that it has added a fourth drilling rig, a contract rig, to accelerate the development of its Fuhrman-Mascho assets in Andrews County, Texas. The additional rig is currently drilling its first well. The Fuhrman-Mascho drilling fleet now consists of two Arena owned drilling rigs and two contract rigs. The Company estimates that the fourth rig will drill 10 wells by year-end, which would result in a total of 175 Fuhrman-Mascho wells drilled in 2009. The current drilling well count for 2009 is 124 wells. Management now estimates that the current 2009 capital expenditure budget of $107 million is adequate and that current commodity prices will generate sufficient cash flow to fully fund the four rig development drilling program. In addition, the company implemented a new hedge, a costless collar, on 1,000 barrels of oil per day with a $70.00 floor and $92.85 ceiling for the period January 1, 2010 to December 31, 2010.