Arakis Confirms Three Prior Major Sudan Oil Discoveries.

CALGARY, ALBERTA--(BUSINESS WIRE)--March 24, 1997--Arakis (NASDAQ:AKSEF) Arakis Energy Corporation (NASDAQ:AKSEF) announces that its wholly owned subsidiary, State Petroleum Corporation, the interim operator of the Consortium comprised of China National Petroleum Corporation (40 percent), Petronas Carigali Overseas Sdn Bhd (30 percent), State Petroleum Corporation (25 percent), and Sudapet Limited (5 percent) has completed the El Nar 72a discovery well announced on January 20, 1997. The well, with a total depth of 2,444 meters tested oil in the Bentiu Unit I and Unit II formations. Well logs indicated 50 m of net pay over a 107 m gross interval in the Bentiu Unit I. A 10 meter zone near the base of the Bentiu I was tested and has an estimated productive capability of 2600 bopd with a modest 10 percent drawdown. The Bentiu Unit II also tested oil from 10 meters of net pay over a 17 meter gross interval.

After the El Nar well rig release on January 14, 1997, an appraisal well in the El Toor structure, El Toor 50a-14-688, successfully tested the primary target, Bentiu Unit I, and also discovered an upper oil-bearing Aradeiba sand. The Bentiu Unit I has a production capability of 4500 bopd on a 10 percent drawdown. The well has confirmed the El Toor structure to be of significant size and a 3D seismic program scheduled for this year will further confirm the areal extent. The well also encountered 6.5 m of net pay in the Upper Aradeiba Sand. This zone is presently being evaluated with regard to areal extent and productivity.

The Toma South structure discovered last year by Toma South 21d discovery well, which was earlier reported to have a potential flow capability in excess of 10,000 bopd, was further confirmed by the Toma South 88C well. The new well is located 6 kilometers to the north west of the original discovery, further delineating the Toma South structure. The gross pay section is 73 meters with 45 meters of net oil pay. The service rig is presently moving to this location to complete and test the well.

State is currently drilling the Umm Sagura location, east of its Unity field and is rigging up a new drilling rig at the El Mahafir prospect. A further two drilling rigs are expected to arrive imminently, one of which is a deep rig capable of drilling to 5000 meters. Three additional seismic crews are expected to arrive in the country shortly and will then be transported to their mobilization site at the Heglig Camp.

CONTACT: Arakis Energy Corporation

Kristine Dow, 403/263-2471

403/263-8069 (FAX)

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Arakis Energy Corporation

Ron Burrows, 403/263-2471

403/263-8069 (FAX)

www.arakis.com