Arakis reports year ended December 31, 1995 financial results increase in recoverable reserves.

CALGARY, Alberta--(BUSINESS WIRE)--April 29, 1996--ARAKIS ENERGY CORPORATION (NASDAQ:AKSEF) reports a net loss of $12,703,707 for the year ended December 31, 1995, or ($0.52) per share.

(All figures in U.S. dollars in accordance with U.S. GAAP). This compares with a loss of $4,896,191 for the 12 month period ended December 31, 1994, or ($0.27) per share. This increased loss is associated with the expanded exploration and development activity in the Company's Sudan oil project, and financial obligations in Papua New Guinea and the Sultanate of Oman and the write-down associated with the sale of the majority of the Company's producing properties in Kentucky. This also includes the staffing and administration of operations offices in Calgary, Khartoum and the Heglig field.

Arakis' net production, for the year ended December 31, 1995, from the Company's U.S. natural gas operations in the Appalachian Basin, averaged 2.0 MMcf per day or 724 MMcf of net production for the year, compared to 2.2 MMcf per day or 800 MMcf of net production for the same period ending December 31, 1994. Total revenues for the year were $1,825,000, compared to $1,913,000 for the same period ending December 31, 1994. There was a 26 percent drop in the average price of the natural gas sales to $1.45 per Mcf from an average of $1.95 per Mcf during 1994. Net proved developed and proved non developed natural gas reserves were 7.7 BCF as of December 31, 1995 compared to 44.2 BCF as at December 31, 1994.

On December 27, 1995 AKS completed the sale of the majority of its proven producing gas reserves in Kentucky and Tennessee to another company for total sale proceeds of $3,983,012, including cash, common stock and warrants. Proceeds of the sale were used to pay down bank debt. A loss of $5,821,927 was incurred on the sale of these properties.

During the year ended December 31, 1995, the Company increased its reserve base in the Republic of Sudan. According to independent engineers' estimates, recoverable proved and probable oil reserves at December 31, 1995, increased 2.3 percent to 314.4 million barrels, from 307.3 million barrels at the prior year-end. The SEC PV-10 Method valuation of these properties at December 31, 1995 was $370,930,000. Based on recent drilling results, the Company believes that it has substantially increased its reserves in the Sudan since year end.

With the Sudan oil project during 1994, Arakis initiated the testing of the 34 existing wells in the Greater Heglig and Unity fields, and reinterpreted a substantial portion of the 3-D seismic data.

The Company has commenced with the $60 million 1996 field exploration program in the Sudan, and is continuing negotiations on the estimated $750 million financing and development package for the Phase 1 field development and export pipeline project; the current exploration budget is included in the proposed project finance.

Shareholders' equity increased to $67,797,064 at December 31, 1995, on a weighted average of 24,384,338 shares outstanding, as compared to $42,233,514 at December 31, 1994. The Company had working capital of $1,888,000 at December 31, 1995, compared to $875,000 at December 31, 1994. To fund the on-going exploration in the Sudan, US$59.6 million has been committed subsequent to December 31, 1996, by way of private placement of common stock and convertible debentures. -0-

                                       YEAR ENDED
                                       DECEMBER 31
                                         ($US)

                                    1995           1994(x)

Total Revenues                   $1,825,639     $1,912,551

Cost of Gas Sales                   756,025        692,405
General & Administrative          6,213,913      5,233,000
Depreciation & Depletion          1,089,581        692,892
Foreign Exchange Loss                59,098        119,900
Interest Expense                    365,300        233,705
                                 ----------      ----------
Net Income (loss)               (12,703,707)    (4,896,191)
                                 ----------      ----------

Earnings (loss) per Share       (     $0.51)    (    $0.27)

Shareholders' Equity            $67,797,064     $42,233,514

Weighted Average
Shares Outstanding               24,384,338      18,473,421

(x) 1994 figures include the acquisition of 100 percent of State
Petroleum Corp.

CONTACT: Arakis Energy Corporation, Calgary

David Harrison, 403/263-2471; 403/263-2488 (FAX)