January 30, 2007 13:08 ET

Arapahoe Ties in Campbell Production

CALGARY, ALBERTA--(CCNMatthews - Jan. 30, 2007) -

Jeffrey L. Standen reports,

Arapahoe Energy Corporation (TSX VENTURE:AAO) ("Arapahoe" or the "Corporation") announces that it has tied-in the Campbell 15-33-54-25W4M well.

The Campbell well was tested at 1.37 million cubic feet per day of gas and 149 barrels of oil per day for a total of 377 barrels of oil equivalent per day (using a 6:1 ratio for gas to oil equivalent). Arapahoe owns a 42.5% working interest plus a gross overriding royalty before payout (160 barrels of oil equivalent per day at full production) and a 65% working interest (245 barrels of oil equivalent per day at full production) after payout. The well is being brought onto full production slowly, commencing at approximately 145 barrels of oil equivalent per day (60 barrels of oil per day and 500 mcf of gas per day) and gradually will be increased to its optimum level.

When combined with existing production, Arapahoe's total production is currently in the range of 500 barrels of oil equivalent per day.

The forbearance period set out in the forbearance agreement that the Corporation entered into with its principal lender on Jan. 8, 2007 has been extended from January 31, 2007 to February 4, 2007. The Corporation continues to investigate and pursue strategic alternatives as described in the Corporation's news release of January 9, 2007.

Arapahoe Energy Corporation is a publicly traded junior oil and gas exploration, development and production company with operations in Western Canada. Arapahoe's shares trade on the TSX Venture Exchange under the symbol "AAO".

Forward-looking statements are based on current expectations that involve a number of risks and uncertainties. These risks and uncertainties, many of which are beyond Arapahoe's control, include the impact of general economic conditions and specific industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, the lack of available qualified personnel or management, stock market volatility and ability to access sufficient capital from internal or external sources. The Corporation's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements, and accordingly, no assurance can be given that any events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits Arapahoe can derive there from.

Per barrel of oil equivalent amounts have been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil ("6:1"). The 6:1 conversion ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Barrels of oil per day equivalency disclosure may be misleading, particularly if used in isolation.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

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