June 06, 2006 15:40 ET

Arapahoe Energy Corporation Closes Asset Purchase Agreements-Campbell Area, Alberta

CALGARY, ALBERTA--(CCNMatthews - June 6, 2006) - Arapahoe Energy Corporation (TSX VENTURE:AAO) ("Arapahoe" or the "Corporation") announces that it closed the previously announced (May 23, 2006 - AAO News Release) Asset Purchase agreements with Dewinton Resources Ltd. ("Dewinton"), 803702 Alberta Ltd. ("803702") and 1141656 Alberta Ltd. ("1141656") for the purchase of additional interests in the Campbell area 15-33-54-25W4M well (the "Campbell 15-33 well") and in 2,560 gross acres of prospect lands and leases and certain additional interests (the "Assets"), effective as of May 1, 2006. Subject to certain adjustments, the purchase price paid by the Corporation for the Assets is $4,000,000 to Dewinton and $600,000 to each of 803702 and 1141656. 803702 and 1141656 will also each receive proportionate shares of a pro rata 2.5% gross overriding royalty on the production from the Assets. As a result of the closing of the purchase of the additional interests, Arapahoe becomes the Operator of the Campbell 15-33 well and the Operator of the Campbell project. Arapahoe's interest in the Campbell 15-33 well and the Campbell project is 77.5%.

As Operator Arapahoe intends to equip and tie in the Campbell 15-33 well as soon as possible and conduct an approximate two and one half (2.5) square mile 3D seismic program on the Campbell prospect lands. Pending the results of integrating the information generated from the seismic program with the existing geological data an additional 1 to 3 wells are planned to be drilled on the Campbell prospect lands.

Arapahoe is a publicly traded junior oil and gas exploration, development and production company with shares listed on the TSX-Venture Exchange under the trading symbol "AAO".

The TSX Venture Exchange has neither approved nor disapproved of the contents contained in this News Release.

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