ARAPAHOE ENERGY CORPORATION
TSX VENTURE : AAO

ARAPAHOE ENERGY CORPORATION

December 31, 2007 09:00 ET

Arapahoe Energy Corporation Receives Shareholder Approval of Name Change and Private Placement Offering and Completes Private Placement Offering

CALGARY, ALBERTA--(Marketwire - Dec. 31, 2007) - Arapahoe Energy Corporation (the "Corporation") (TSX VENTURE:AAO) is pleased to announce that at the Special Meeting of Shareholders held on December 28, 2007 it received disinterested shareholder approval for its previously announced non-brokered private placement financing (the "Offering") and shareholder approval for the name change of the Corporation to Canadian Phoenix Resources Corp. (the "Name Change"). The Corporation is also pleased to announce that it has completed the Offering for aggregate gross proceeds of $17,888,951.

Pursuant to the Offering, the Corporation issued 102,200,000 common shares of the Corporation ("Common Shares") issued on a "flow-through" basis under the Income Tax Act (Canada) ("Flow-Through Shares") at the price of $0.125 per Flow-Through Share for gross proceeds of $12,775,001 (the "Flow-Through Private Placement"). The proceeds of the Flow-Through Private Placement will be used by the Corporation to incur Qualifying Expenditures, which will be renounced in favour of purchasers for the 2007 taxation year. It is anticipated that the proceeds will be used primarily for seismic programs and other exploratory activities on the Corporation's properties including Sarcee and Campbell, and on certain properties on which the Corporation has presently or may acquire farm-in rights.

Pursuant to the Offering, the Corporation also issued 40,911,600 units of the Corporation ("Units") at the price of $0.125 per Unit for gross proceeds of $5,113,950 (the "Unit Private Placement"). Each Unit consists of one Common Share and one Common Share purchase warrant ("Warrant"). Each Warrant will entitle the holder thereof to purchase one Common Share during the period expiring on the first anniversary of the completion of the Private Placement upon payment of the exercise price of $0.20 per Common Share. The proceeds of the Unit Private Placement will be used by the Corporation to develop its oil and natural gas projects, to conduct acquisitions and for general working capital purposes.

The securities issued pursuant to the Offering are subject to a restriction period expiring April 29, 2008. Following the completion of the Offering, the Corporation has 199,917,032 Common Shares issued and outstanding. The completion of the Offering is subject to regulatory approval.

The Corporation plans on effecting the Name Change to Canadian Phoenix Resources Corp. by the middle of January 2008.

Arapahoe Energy Corporation is a publicly traded junior oil and gas exploration, development and production company with operations in Western Canada. Arapahoe is pursuing a corporate strategy of being a consolidator of undervalued oil and gas assets located in the Western Canadian Sedimentary Basin. Arapahoe's shares trade on the TSX Venture Exchange under the symbol "AAO". After the Name Change, the shares of the Corporation will trade on the TSX Venture Exchange under the symbol "CPH".

ON BEHALF OF THE BOARD OF DIRECTORS OF ARAPAHOE ENERGY CORPORATION

Robert J. Chenery, President & CEO

Forward-Looking Statements

This release may contain forward-looking statements. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Forward-looking statements are not guarantees of future performance. Any forward-looking statements are made as of the date hereof and Canadian Phoenix does not undertake any obligation, except as required under applicable law, to publicly update or revise such statements to reflect new information, subsequent or otherwise.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

Contact Information

  • Arapahoe Energy Corporation
    Robert J. Chenery
    President & CEO
    (403) 920-0040
    (403) 920-0043 (FAX)