Arapahoe Announces Amendments to the Trust Indenture for Debentures

Arapahoe Energy announces amendments to the trust indenture dated April 11, 2007 between Arapahoe and Computershare Trust Company of Canada pursuant to which the Corporation created and issued up to $11,500,000 convertible secured subordinated debentures, as previously announced on April 10, 2007.

The Trust Indenture has been amended to change the definition of a "Business Combination Transaction" to include "any purchase or acquisition of assets or shares from another corporation or entity" so that Arapahoe may consider other types of business transactions in order to meet its obligations to Debentureholders under the Trust Indenture. As well, Arapahoe now has until April 30, 2008 rather than December 31, 2007 to complete a "Business Combination Transaction."

Arapahoe President and CEO Robert Chenery said in a written statement, "Management of Arapahoe believes that the foregoing will allow Arapahoe to evaluate the market more fully in the first quarter of 2008, when engineering and related financial reviews of the junior oil and gas companies as at December 31, 2007 are available and better understood in the context of current market conditions.