BAKERSFIELD, Calif., Oct. 22, 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 planned recovery strategies for its West Oneida Project in Scott County, Tennessee. They will be immediately implemented on closing of escrow.
"Based upon initial discussions with engineers, management believes that at the end of the first six months, the pressure should be sufficient to yield production of approximately 113 barrels of oil per day, or 3,400 barrels per month. At an average continuing price of $70 per barrel, that should yield approximately $250,000 revenue per month," according to Cheyenne Resources President Thomas J. Cunningham.
"Management believes this is a straightforward secondary recovery project," said Cunningham. "As part of the process, the company will utilize two compressors to inject air to repressure the down hole formation, which is the Fort Payne reservoir at an approximate depth of 1,800 feet."
The air injection will continue and should increase the down hole pressure by approximately 2.5% per month for the next 9-12 months.
Assuming these estimates are correct, and that the company is able to continue repressurizing the reservoir, this would put production at about 132 barrels of oil per day at the end of month 12 and about 177 barrels daily by the end of the second year.
"With a daily extraction level of 177 barrels daily, or more than 5,300 barrels per month, the revenue level could climb to approximately $425,000 per month," Cunningham said.
Bolstering this potential, the president said, is the fact that more recent estimates of original oil in place in this formation have increased to 31 million barrels. This is nearly triple the original estimate of 11.2 million barrels.
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.