BAKERSFIELD, Calif., Oct. 20, 2009 (GLOBE NEWSWIRE) -- Cheyenne Resources Corp. (OTCBB:CYRS), which focuses on pursuing reclamation opportunities in the oil and gas sector, today announced that it has completed a $250,000 private placement with an accredited investor group.
The funds will be used to exercise Cheyenne's Letter of Intent to acquire an approximate 2,300 acre oil and gas property in eastern Tennessee that has existing oil and gas production. The company believes a minimum of 1.5 million barrels of oil equivalent is recoverable.
"The company's immediate focus will be on re-developing the West Oneida Project in Scott County, Tennessee. This project lies in the middle of an existing field that contains 62 existing oil wells, 15 gas wells and 7 oil and gas wells.
"We firmly believe that a properly planned and cost-effective secondary recovery project will provide the required reservoir pressure restoration to rapidly recover significant existing reserves left behind after the successful primary recovery efforts," said Cheyenne Resources President Thomas J. Cunningham.
"By strategically applying prudent secondary recovery techniques in select areas of the field, Cheyenne Resources believes it can recapture significant existing oil and natural gas reserves through applying various methods of repressurization."
For more information on the company, see www.cheyenne-energy.com .
Safe Harbor Statement
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the company's operations, financial performance and condition. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, but not limited to, the impact of competitive products; pricing and new technology; changes in consumer preferences and tastes; effectiveness of marketing; changes in laws and regulations; fluctuations in costs of production; and other factors as those discussed in the company's reports filed with the Securities and Exchange Commission from time to time, available at www.sec.gov. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.