ARAPAHOE ENERGY CORPORATION
TSX VENTURE : AAO

ARAPAHOE ENERGY CORPORATION

July 13, 2005 15:10 ET

Arapahoe Energy Corporation Announces Drilling Updates

CALGARY, ALBERTA--(CCNMatthews - July 13, 2005) - Arapahoe Energy Corporation (the "Corporation") (TSX VENTURE:AAO) announces that the C1 et al Sarcee 12-13-23-4 W5M Mississippian Test Well has commenced drilling ("spud"). The 12-13 Test Well will take between 75 and 90 days to drill and case. The 12-13 Test Well will be drilled to a depth of approximately 3,300 meters subsurface. The target is a potential 25 to 50 BCF liquid rich gas reserve from the Mississippian-Rundle formation identified on 3D seismic. Similar targets in this region feature high deliverability, liquid rich gas accumulations, demonstrating long reserve life indices.

The Corporation also announces that re-completion and fracing operations are underway on the Arapahoe et al Sarcee13-29-23-3 W5M well. The company will maintain a 37.5% interest in the 13-29 well. The target is 3 to 6 BCF of natural gas from the Blairmore formation at +/- 2,610 meters subsurface, identified on well logs and 2D seismic. Initial flow rates are anticipated to be between 1 MMcf/day and 3 MMcf/day.

Both the 12-13 Test Well and the 13-29 well can be produced into currently underutilized third party facilities.

Arapahoe's Sarcee project area encompasses both high impact exploratory and high impact development potential that will continue to be the Company's focus through 2005 and 2006 and beyond. The Corporation currently owns working interest ranging between 25% and 100% in approximately 28,800 acres (11,520 hectares) on the Sarcee Project.

The Corporation also announces that drilling operations ("spud") have commenced on the Highview et al Strachan 1-11-38-8 W5M well. The 1-11 test well will be drilled to an approximated depth of 3,000 meters subsurface. Operations consisting of drilling, testing and casing are anticipated to take approximately 27 days from the spud date.

The primary objective is natural gas and NGL's from the Ellerslie formation with a secondary target of natural gas from the Rock Creek formation., Similar Ellerslie pools in the area suggest our reserve potential is from 5 to 7 Bcf of liquids rich natural gas. Initial rates of 2 to 5 MMcf/day with the potential of 50 barrels of condensate per MMcf are anticipated.

Arapahoe will fund 22.4% of the estimated $1.8 million cost for a 21% Before Payout interest Arapahoe will retain a 12.6% after payout working interest in the well and the surrounding two sections of Farmout lands.

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. Arapahoe's primary area of exploration focus is the Alberta Foothills specifically on the Tsuu T'ina First Nation (Sarcee Area) immediately west of the City of Calgary.

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

Contact Information

  • Arapahoe Energy Corporation
    Jeffrey L. Standen
    Chief Executive Officer and President
    (403) 920-0040 (ext. 1)
    Website: www.arapahoe-energy.com