BAKERSFIELD, Calif., Nov. 5, 2009 (GLOBE NEWSWIRE) -- Cheyenne Resources Corp. (OTCBB:CYRS), an emerging company focusing on the potential for major exploration and production reclamation projects in the oil and gas sector, today reported that the company has made an initial investment of $150,000 as part of phase one of four phases in its joint venture agreement with Oxalis Energy Group, Inc., based in Katy, Texas. Cheyenne Resources has a 50% working interest in this project.
"This payment represents the first part of our agreement with Oxalis to re-work 22 natural gas wells on a property in Crockett County, Texas," said Cheyenne Resources President Thomas J. Cunningham.
Recent geological reports estimate proven undeveloped reserves of 100 billion cubic feet of natural gas. Another recent reserve report suggests a potential valuation of $285 million to $423 million, using a base price of $3.50 per thousand cubic feet of natural gas.
"Our agreement with Oxalis Energy Group also gives us the opportunity to acquire the right to develop two other potential oil and gas transactions with Oxalis," said Cunningham. "Both of these projects are located in Texas.
"In Jim Wells County," Cunningham said, "we will be focused on development of a secondary oil and natural gas recovery program comprised of 40 wells, with a 10 well at a time recovery program. This site has proven reserves of 30 million barrels of oil and 17 billion cubic feet of natural gas.
"In Taylor County, we plan development of a secondary oil and natural gas recovery program developed initially with five oil wells. Proven reserves approximate 3 million barrels of oil equivalent."
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