BAKERSFIELD, Calif., Nov. 11, 2009 (GLOBE NEWSWIRE) -- Cheyenne Resources Corp. (OTCBB:CYRS), an emerging company focusing on major low risk exploration and production reclamation projects in the oil and gas sector, today reported that it anticipates additional and substantial funding to be invested shortly in its joint venture agreement with Oxalis Energy Group, Inc..
The additional financing to be received will be invested in the recently announced Cheyenne-Oxalis project to drill as many as 200 natural gas wells, in 20 well increments. The drilling program in this significant project encompasses 21,000 acres of high quality natural gas at depths of 4,400 to 5,200 feet.
"As we reported earlier," said Cheyenne Resources President Thomas J. Cunningham, "this property in Crockett County, Texas, has enormous potential, with estimates of potential valuation ranging from $285 million to $423 million based on recent geological reports of undeveloped reserves on the property," Cunningham said. Cheyenne Resources has a 50% working interest in this project.
"Moreover," he noted, "based on the high BTU quality of the natural gas within this property, we anticipate receiving a more than 20% premium on the price for natural gas production from the wells once production commences."
The Cheyenne-Oxalis joint venture agreement also envisions two other potential oil and gas transactions, both in Texas.
One project, in Jim Wells County, will be focused on development of a secondary oil and natural gas recovery program comprised of 40 wells. The site has approximate reserves of 30 million barrels of oil and 17 billion cubic feet of natural gas.
Another venture, in Taylor County, involves a secondary oil and natural gas recovery program. Proven reserves at this site approximate 3 million barrels of oil equivalent.
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.