June 23, 2005 11:18 ET

Arapahoe Energy Corporation: News Release

CALGARY, ALBERTA--(CCNMatthews - June 23, 2005) - Arapahoe Energy Corporation (the "Corporation") (TSX VENTURE: AAO) announces that the commencement of drilling operations for the well Highview et al Strachan 1-11-38-8 W5M have been delayed due to adverse weather conditions. It is expected that the 1-11 test well will commence drilling operations on or before June 30, 2005, weather conditions permitting.

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)