2009-08-06-2008-10-01-2008-10-01

Bought majority interest, gaining interest in 1,100 BOE/d.

Canadian Phoenix Resource Corp., Calgary, (Toronto Venture: CPH) (fka Arapahoe Energy Corp.) has acquired a majority interest in Alberta-based Serrano Energy Ltd. for C$55 million. Canadian Phoenix acquired 11 million shares of Serrano, representing approximately 50.1% of the total shares outstanding. As part of a three-part transaction, Canadian Phoenix sold to Serrano its working interest in approximately 9,680 acres in the Freemont area of Saskatchewan for C$35 million in Serrano stock. Canadian Phoenix purchased 2 million Serrano shares at C$5 per share, representing an aggregate purchase price of C$10 million in exchange for the right to participate in the distribution of securities by Serrano in certain instances. Additionally, Canadian Phoenix farmed into certain Serrano oil and gas properties and has now incurred approximately C$5.7 million of expenditures. Serrano holds an option to buy back some or all of the farm-in properties earned by Canadian Phoenix up to a maximum of C$5 million. Serrano issued 2 million shares to Canadian Phoenix valued at C$10 million. Serrano operates in Alberta and Saskatchewan. Net production is currently 1,100 barrels of oil per day. Serrano holds 29,626 undeveloped net acres, the majority in the Freemont, Sawdy, Standard Hills and Lloydminster areas of Saskatchewan and Alberta. This includes a 35% working interest in 3,360 contiguous acres of oil-sands leases south of Fort McMurray, Alberta. As of year-end 2007, DeGolyer and MacNaughton estimated Serrano reserves within these leases to be approximately 107 million barrels of oil. Canadian Phoenix operates in Western Canada.