BAKERSFIELD, Calif., Oct. 21, 2009 (GLOBE NEWSWIRE) -- Cheyenne Resources Corp. (OTCBB:CYRS), which focuses on pursuing major reclamation opportunities in the domestic oil and gas sector, today reported on potential revenue opportunities from the West Oneida Project in Scott County, Tennessee, on which it has made an initial investment of $250,000.
The company plans to close escrow on the approximate 2,300 acre oil and gas property as quickly as possible. Geologists believe a minimum of 1.5 million barrels of oil equivalent is recoverable. Assuming an average continuing price of $70 per barrel, that would result in potential revenues of $105 million.
"A more recent report suggests that there may be as much as 31 million barrels that were originally in place," said Cheyenne Resources President Thomas J. Cunningham. "The reason for the suggested increase in the reserves is that this newer report puts the water saturation level at closer to 10%, compared with the original factor of 23% that was used. If this is correct, then management's estimates could be significantly higher," Cunningham said.
Cunningham said projected recovery estimates over the first year and beyond would be detailed by the company in the coming days.
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.