SOURCE: Vangold Resources Ltd.

July 09, 2007 16:39 ET

Vangold and Arapahoe Increase Interest in Mississippian Gas Well

VANCOUVER, BC--(Marketwire - July 9, 2007) - VANGOLD RESOURCES LTD. (TSX-V: VAN) ("Vangold") and ARAPAHOE ENERGY CORPORATION (TSX-V: AAO) ("Arapahoe") jointly announce that effective June 1, 2007 they have jointly acquired all of the interest of C1 Energy Ltd. (55% working interest) in the C1 et al Sarcee 12-13-23-4W5M suspended potential Mississippian gas well and the surrounding 2,560 gross acres. The acquisition increases Arapahoe's interest from 19.2% to 46.7% and Vangold's interest from 6% to 33.5%. Arapahoe becomes the operator of the Sarcee 12-13 well and surrounding land.

The Sarcee 12-13 well is located on the Tsuu T'ina First Nation (Sarcee Reserve) immediately west of the City of Calgary, Alberta. In 2005, C1 Energy Ltd., the then operator, reported that the Sarcee 12-13 well was drilled to a depth of 3,254 meters subsurface and intermediate casing was set to 3,160 meters subsurface. Immediately below that depth the Sarcee 12-13 well encountered a fully dolomitized 70 meter gross (48 meter net) pay interval with a 5% average porsity in the primary target zone being the Turner Valley formation. The well preflowed in an open hole condition to verify the presence of natural gas.

The Sarcee 12-13 Mississippian test well was suspended in November 2005 when the well encountered completion complications. Arapahoe, Vangold and the other working interest partners will re-complete the Sarcee 12-13 well for commercial gas production in the 4th quarter of 2007. If successful an additional 2-3 development locations exist on the land. There is existing infrastructure in the immediate area to facilitate the tie-in and production of commercial quantities of natural gas from the wells and lands.

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

Contact Information

  • For more information on the news release or on Arapahoe Energy Corporation
    or on Vangold Resources Ltd. kindly contact the following:

    Vangold Resources Ltd.
    Dal Brynelsen
    President and Chief Executive Officer
    (604) 684-1974 office
    (604) 830-4458 cell
    Email: Email Contact
    Website: www.vangold.ca

    Arapahoe Energy Corporation
    Jeff Standen
    President and Chief Executive Officer
    (403) 538-8446 office
    (403) 615-5827 cell
    (403) 920-0043 fax
    Email: Email Contact
    Website: www.arapahoe-energy.com

    VANGOLD RESOURCES LTD.
    P.O. Box 11622, 1730 - 650 West Georgia Street
    Vancouver, BC
    V6B 4N9
    Phone: (604) 684-1974
    Fax: (604) 685-5970
    www.vangold.ca