April 10, 2006 11:35 ET

Arapahoe Energy Corporation Reports Increase in Reserves

CALGARY, ALBERTA--(CCNMatthews - April 10, 2006) - Arapahoe Energy Corporation ("Arapahoe" or the "Corporation") (TSX VENTURE:AAO) (47,787,710 shares issued and outstanding) is pleased to announce the results of the evaluation of the Corporation's reserves as at December 31, 2005 as prepared by DeGolyer and MacNaughton Canada Limited ("DeGolyer") and Chapman Petroleum Engineers Ltd. ("Chapman"), the Corporation's independent reserve evaluators.

Reserves Summary

Arapahoe's year end 2005 oil and natural gas reserves are as follows:

Oil (Bbls) Gas (mcf) NGL's (Bbls)
---------- ----------- ------------

Proven Reserves 495,634 205,000 1,252
Probable Reserves 214,759 14,353,000 393,610
(14.3 Bcf)
Proven & Probable
Reserves 710,393 14,558,000 394,862

Reserves Value Summary

The values attributed to the Corporation's proven and probable reserves,
based on forecasted prices, are as follows;

10% 15% 20%
------------ ------------ ------------

Proven & Probable
Reserves $48,523,000 $38,488,000 $31,449,000


125% increase in Proved reserves

88% increase in Proved plus Probable reserves

Present worth of cash flow from reserves
Using forecast pricing
(undiscounted before income tax) MBOE's M$
Proved + probable 3,532 $96,868
Future capital required - $(7,220)
Proved + probable, net of future capital 3,532 $89,648
Proved 531 $10,836
Future capital required - $(2,193)
Proved, net of future capital 531 $ 8,643

Reserves Summary Detail

The following schedule summarizes the Corporation's reserves at December 31, 2005 as compared to 2004. The Corporation's reserves have been prepared in accordance with National Instrument 51-101 in Canada.

December 31 2005 2004
Total Total
Oil Gas Liquids (mboe) (mboe) %
(mbbls) (mmcf) (mbbls) (6:1) (6.1) Increase
Producing 208 - - 208 3 -
Non-producing 190 205 1 225 - -
Undeveloped 98 - - 98 233 -
Total proved 496 205 1 531 236 125%
Probable 214 14,353 394 3,001 1,645 83%
Total proved
& probable 710 14,558 395 3,532 1,881 88%

Evaluation of the Corporation's possible reserves is ongoing however an independent Prospect Analysis dated September 1, 2005 prepared in accordance with National Policy 51-101 in Canada, as it pertains to the evaluation of prospects and resources, was conducted to evaluate the development potential of a Coal Bed Methane (CBM) project on a portion of the Corporation's Sarcee Lands (20,640 acres). The prospect analysis assumed a 30% chance of success and assigned approximately 49 BCF of possible net gas reserves to a 100% interest. Arapahoe currently has a 100% interest in the evaluated lands but plans to reduce to a 50% interest upon an industry partner earning an interest in the lands through certain equalization costs, additional drilling and other exploration activities being conducted on the lands. The details of the industry partners' obligations to Arapahoe for earning are set out in a previous news release dated March 6, 2006.

Reserves Value Summary Detail

The following schedule summarizes the value of the Corporation's reserves at December 31, 2005. The Corporation's reserves value summary has been prepared in accordance with National Instrument 51-101 in Canada.

2005 Future net revenue before income taxes -
discounted at a rate of
(m$) 0% 5% 10% 15% 20%
Producing 3,576 3,322 3,096 2,894 2,712
Non-producing 4,501 3,844 3,334 2,927 2,597
Undeveloped 566 418 294 191 103
Total Proved 8,643 7,584 6,724 6,012 5,412
Probable 81,005 56,282 41,799 32,476 26,037
Total proved plus probable 89,648 63,866 48,523 38,488 31,449


Further to the Corporation's news release dated March 6, 2006, drilling plans to explore and develop Coal Bed Methane (CBM) natural gas reserves on the Corporation's Sarcee project lands in the Southern Alberta foothills will commence in early May 2006.

Further to the Corporation's news release dated March 31, 2006, drilling plans to explore and develop oil and natural gas reserves on the Corporation's Poundmaker and Freemont lands in the Southwest Saskatchewan will commence in the middle of June 2006.

Independent experts have recommended certain remedial completion work be performed on the Sarcee 12-13-23-4W5 Mississippian well. It is anticipated that after consultation with the partners in the 12-13 well that the recommended remedial work may commence in the second or third quarter of 2006.

Upon successful re-completion of the 12-13 well an additional 2-to-3 development Mississippian drilling locations on the Corporations lands may be drilled.

The independent engineering evaluation assigned 14 BCF of probable natural gas reserves to Arapahoe's interest in the Sarcee Area, Alberta Mississippian project.

Forward Looking Statements

Certain information regarding the Corporation contained herein constitutes forward looking statements under the meaning of applicable securities laws, including the United States Private Securities Litigation Reform Act of 1995. Forward looking statements include estimates, plans, expectations, opinions, forecasts, projections, guidance, or other statements that are not statements of fact, including statements regarding (i) future drilling plans, future net revenue before income tax, and (ii) other risks and uncertainties described from time to time in the reports and filings made by the Corporation with securities regulatory authorities. Although the Corporation believes that the expectations reflected in such forward looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. There are many factors that could cause forward looking statements not to be correct, including risks and uncertainties inherent in the Corporation business. These risks include, but are not limited to: crude oil and natural gas price volatility, exchange rate fluctuations, availability of services and supplies, operating hazards and mechanical failures, uncertainties in the estimates of reserves and in projection of future rates of production and timing of development expenditures, general economic conditions, and the actions or inactions of third-party operators. The Corporation's forward looking statements are expressly qualified in their entirety by this cautionary statement.

Corporation Information

Arapahoe Energy Corporation is a public junior oil and natural gas company with shares trading on the TSX Venture Exchange under the trading symbols "AAO".

Arapahoe's primary focus is exploring on First Nation lands in Western Canada. To date Arapahoe has agreements to explore for and develop oil and natural gas reserves on the Tsuu T'ina First Nation, immediately west of the City of Calgary, Alberta and the Poundmaker First Nation located in the South West portion of the province of Saskatchewan.

The Corporation will release its audited financial year end results by April 28, 2006. Additional detailed information relating to the Corporation's reserves will be provided together with audited year end results on that date.

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

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