Arapahoe Begins Drilling in Alberta, Canada

Arapahoe Energy reports that drilling has commenced on the well Extreme Sarcee 4 - 30 - 23 - 3 W5M (the "4-30 well") in Canada and is anticipated to reach total depth in approximately two weeks time. The well will be drilled to a depth of +/- 2,213 meters subsurface to test for oil and/or natural gas potential in the Cardium and Belly River formations. Upon completion of the drilling operations, Arapahoe will own a 50% interest in the 4-30 well and in a total of 1,920 gross acres surrounding the 4-30 well.

Arapahoe also announces that the re-entry well Extreme Sarcee 13 - 29 - 23 - 3 W5M (the "13-29 well") will commence operations during the week of March 7 - March 14, 2004. It is anticipated that these operations will take approximately 10 days to complete once commenced. The 13-29 well will test for natural gas potential in the Blairmore/Basal Quartz formation. Upon completion of the operations Arapahoe will own a 50% interest in the 13-29 well.

As previously announced, the plan of arrangement between Arapahoe and Crazy Horse Energy Ltd. was completed effective February 6, 2004. As a result, H. Barry Hemsworth of Vancouver, British Columbia acquired ownership and control of 1,095,500 common shares and 45,500 warrants, Eric Leslie of Calgary, Alberta acquired ownership and control of 1,009,667 common shares and Rodney Hope of Edmonton, Alberta acquired ownership and control of 1,047,909 common shares of Arapahoe. At the completion of the arrangement, these individuals owned or controlled the following securities of Arapahoe: H. Barry Hemsworth - 1,151,055 common shares (11.7%) and 101,055 warrants; Eric M. Leslie - 1,043,000 common shares (10.6%) and 33,333 warrants; and Rodney M. Hope - 1,081,242 common shares (11.0%) and 33,333 warrants. Arapahoe has been advised that neither H. Barry Hemsworth, Eric M. Leslie nor Rodney M. Hope has any current intention of acquiring further securities of Arapahoe.