ARAPAHOE ENERGY CORPORATION
TSX VENTURE : AAO

ARAPAHOE ENERGY CORPORATION

August 09, 2006 12:00 ET

Arapahoe Energy Corporation: Activity Update

CALGARY, ALBERTA--(CCNMatthews - Aug. 9, 2006) - Arapahoe Energy Corporation ("Arapahoe" or the "Corporation") (TSX VENTURE:AAO) announces an update to the Corporation's second and third quarter drilling program in Western Canada.

SARCEE AREA, ALBERTA

Two (2) wells (4-30 -23-3W5M and 9-21-23-3W5M) have been successfully drilled to evaluate the Coalbed Methane ("CBM") natural gas potential in the Horseshoe Canyon Formation on the Corporation's lands in the Sarcee Area. Both wells have been cored and cased and the Corporation is awaiting evaluation of the cores and well information. Fracing and completion of both wells will commence immediately. A third well will be drilled and cored to evaluate the CBM natural gas potential in the Horseshoe Canyon Formation prior to the end of September 2006 (11-11-23-4W5M). All information generated from the wells and cores will be evaluated by CBM Solutions Inc. to generate a development drilling program which could initially consist of approximately 80 wells and eventually as many as 200 Horseshoe Canyon Formation (CBM) natural gas wells. The Horseshoe Canyon formation is typically free of any water production when producing natural gas. To further assist in generating the development program Arapahoe has recently completed the shooting of an extensive 3D seismic program on the Sarcee Area lands. The data obtained from the seismic program is currently being processed.

Arapahoe is the Operator of the Sarcee Area program with a 50% interest. Unbridled Energy Corp. ("UNE" - TSX Venture Exchange) is a 50% partner in the Sarcee Area. Unbridled Energy Corp. is the new name for Leroy Ventures Ltd. (formerly "LRV" on the TSX Venture Exchange). LRV was formerly Reconnaissance Energy Inc.

S.W. SASKATCHEWAN

Poundmaker/Cutknife Area

Two (2) wells (13-24-44-22W3M and 15-30 -44-21W3M) have been drilled and cased and are awaiting completion on the Corporation's lands in the Poundmaker/Cutknife Area. Logs from these wells indicate potential natural gas pay in the Second White Specs and Viking Formations and potential heavy oil pay in the Cummings Formation. Arapahoe is the Operator and has a 100% interest in the Poundmaker/Cutknife Area.

Freemont Area

Four (4) wells (11-33, 14-33, 13-27 and 7-33-44-24W3M) have been drilled and cased and are awaiting completion on the Corporation's lands in the Freemont Area. Logs from theses wells indicate potential natural gas pay in the Colony Formation in one well and potential Sparky and Waseca heavy oil pay in all four wells.

Two (2) wells (14-27 and 1-33-44-24W3M) on the Corporation's lands in the Freemont Area are currently being worked over.

Arapahoe is the Operator and has a 100% interest in the Freemeont Area.

Senlac Area

Two (2) wells (13-23-40-27W3M and 9-6-41-26W3M) have been drilled and cased and are awaiting completion on the Corporation's lands in the Senlac Area. Logs from these wells indicate potential natural gas pay in the Viking, Colony, Second White Specs and McLaren Formations and potential oil heavy pay in the Cummings formation. Two (2) existing wells (1-36-40-27W3M and 15-24-40-26W3M) are being re-entered and recompleted for potential natural gas production from the Viking and/or Colony Formation. Arapahoe is the Operator and has a 100% interest in the Senlac Area.

True Energy Trust Joint Venture

Three (3) wells have been drilled and cased in the Neilburg, Freemont North and Carruthers Areas and all three are awaiting completion. A fourth well will be drilled prior to the end of September 2006. These wells have been drilled by True Energy as the operator with Arapahoe having a 50% interest.

Campbell Area, Alberta

The Corporation has commenced the process to obtain all of the required approvals for pipeline construction in order to tie-in for production the 15-33-54-25W4M well, which well is located on the Corporation's lands in the Campbell Area. It is anticipated that the 15-33 well will be producing light oil and solution gas in October 2006. Prior to year end a 3D seismic program is planned to be shot on the Corporation's lands in the Campbell Area in order to delineate development drilling locations. Arapahoe is the Operator of the Campbell area and currently has a 77.5% interest in the 15-33 well.

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".

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

Contact Information

  • Arapahoe Energy Corporation
    Brett Standen
    Corporate Communications
    (403) 538-8443
    (403) 920-0043 (FAX)
    Email: brett@arapahoe-energy .com
    Website: www.arapahoe-energy.com