SNRG Corporation
OTC Bulletin Board : SNRG

March 31, 2006 09:15 ET

SNRG Enters into LOI with Arapahoe Energy to Develop S.W. Saskatchewan Lands

SCOTTSDALE, Ariz.--(CCNMatthews - Mar 31, 2006) -

SNRG Corporation (OTCBB:SNRG) is pleased to advise that SNRG Participating Income Fund I, LLC ("SNRG") has entered into a Letter of Intent dated March 30, 2006, with Arapahoe Energy Corporation ("Arapahoe"), of Calgary, Alberta, pursuant to which SNRG and Arapahoe may explore, develop and exploit Arapahoe's oil and gas properties in the Freemont and Poundmaker areas of S.W. Saskatchewan comprising approximately 30,000 acres.

Under the terms of the Letter of Intent, SNRG will, on or before April 14, 2006, pay Arapahoe the sum of $500,000 cash and pay a further $3,250,000 to Arapahoe on or before May 15, 2006. SNRG will also pay $2,100,000 to Arapahoe for a portion of the costs of a planned approximate 60-square-mile 3D seismic program to be conducted on the Freemont and Poundmaker prospect lands. In addition SNRG will expend $3,000,000 on drilling on the Freemont and Poundmaker prospect lands. Seismic and drilling is anticipated to commence in June 2006. Upon SNRG fulfilling the foregoing earning requirements Arapahoe and SNRG will be 50% - 50% partners in an anticipated ongoing two (2) year exploration and exploitation program on the Freemont and Poundmaker prospect lands.

SNRG Participating Income Fund I, LLC is a special purpose oil and gas asset development fund under the management and participatory ownership of the company.

"We are pleased with this first new major project for SNRG," stated Mr. Fimrite, SNRG president. "We believe that this property has the rapid development characteristics we are looking for in our fund acquisitions."

Arapahoe is a publicly traded junior oil and gas exploration, development and production company with shares listed on the TSX Venture Exchange under the trading symbols "AAO."

For additional information, please visit our Web site at: www.SNRG.net. Please note the corporate address and contact numbers below.



Corporate Offices:
14300 N Northsight Blvd, Ste 227
Scottsdale, AZ 85260
Tel: 480-991-2040
Fax: 480-991-2203



Forward-Looking Statements: This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, our ability to fund our earn in requirements for the prospect lands and the successful exploration, development and exploitation of Arapahoe's oil and gas properties in the Freemont and Poundmaker areas of S.W. Saskatchewan comprising approximately 30,000 acres. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with oil and gas exploration; changes in reserve estimates if any; the potential productivity of our properties; changes in the operating costs and changes in economic conditions and conditions in oil and gas production and exploration and the unproven nature of alternative energy technologies and its commercial viability. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-KSB for the 2004 fiscal year, our quarterly reports on Form 10-QSB and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

Contact Information

  • SNRG Corporation
    Jim Elbert, 888-388-8989 (Investor Relations)