ARAPAHOE ENERGY CORPORATION

ARAPAHOE ENERGY CORPORATION

March 17, 2005 13:08 ET

Arapahoe Energy Corporation Announces $7,000,000 Private Placement


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ARAPAHOE ENERGY CORPORATION

TSX VENTURE SYMBOL: AAO

MARCH 17, 2005 - 13:08 ET

Arapahoe Energy Corporation Announces $7,000,000
Private Placement

CALGARY, ALBERTA--(CCNMatthews - March 17, 2005) - Arapahoe Energy
Corporation (TSX VENTURE:AAO) (the "Corporation") is pleased to announce
that it has entered into an engagement letter with Dominick & Dominick
Securities Inc. for the private placement of 11,111,111 Common Shares of
the Corporation, to be issued as "flow-through shares" within the
meaning of the Income Tax Act, at the price of $0.45 per share
($5,000,000) and 5,000,000 Common Shares of the Corporation at the price
of $0.40 per share ($2,000,000) for aggregate gross proceeds of
$7,000,000. The closing of this financing is expected to occur on or
about April 8, 2005 and is subject to receipt of normal course
regulatory approvals. The proceeds of the private placement will be to
fund the Corporation's 2005 exploration drilling program and for general
working capital purposes.

The Corporation is a publicly traded junior oil and natural gas
exploration company with its shares listed on the TSX Venture Exchange
under the trading symbol "AAO". The Corporation is engaged in the
exploration, development and production of oil and natural gas in
Western Canada.


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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Arapahoe Energy Corporation
    Jeffrey L. Standen
    Chief Executive Officer and President
    (403) 920-0040 (ext. 1)
    Website: www.arapahoe-energy.com
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this news release.