Cheetah Oil & Gas Ltd.
OTC Bulletin Board : COGL

Cheetah Oil & Gas Ltd.

July 19, 2005 09:00 ET

Cheetah Oil & Gas Ltd.: Re-Entry Date for Kuru #2 Well, and Gas Pipeline Update

CALGARY, ALBERTA--(CCNMatthews - July 19, 2005) - Cheetah Oil & Gas Ltd., (OTCBB:COGL) (the "Company") announces its intention to re-enter the Kuru #2 well located on PRL13 in south-central Papua New Guinea. The Kuru structure is approximately 15 kilometers long and 3.5 kilometers wide with the target reservoir being the Darai Limestone at a depth of about 300 meters. The Company's interest in the well is 100%.

The Kuru #1 well was originally drilled in1956 by Australasian Petroleum Company and blew-out at a rate estimated to be in excess of 50 MMCFD when unexpected gas production was encountered at shallow depths. After four months of uncontrolled blowout, Red Adair was brought in and, with the drilling of a relief well, was able to control and kill the blowout.

Kuru #2 was an offsetting exploration well drilled in 1956 to evaluate deeper formations. Bypassed pay in the Darai Limestone has been identified in this well. Re-completion of the well will involve entering the seven inch casing and running an ultra sonic imaging logging tool to evaluate the integrity of the casing and the condition of the cement bonding. Perforating guns will then be run to evaluate oil and gas potential in up to five intervals: a limestone unit in the Eocene, a sandstone section in the Lower Miocene and three potential reservoirs in the lower, middle and upper Darai limestone. Each zone will be evaluated by swabbing of the casing and/or cleanout with endless tubing. Upon success an extended production test will then be conducted.

Doug Marshall, Drilling and Operations Manager for the Company, commented that "we have thoroughly evaluated all the data of the historic work completed on the Kuru structure and have a high degree of confidence in the work we are about to do."

The anticipated commencement of the project is on or about September 10, 2005 following barging of equipment to the Sirebi base camp and trucking to the Kuru #2 wellsite. Subject to weather and equipment delays, it is expected to take approximately 30 days to complete the operation.

Garth Braun, CEO and Chairman of Cheetah Oil & Gas Ltd. commented; "Fifty years ago, natural gas discoveries in remote regions were uneconomic and not sought after. Today there is greater infrastructure in place and stronger regional demand for energy. This includes plans for gas demand from proposed new mines and a possible new LNG facility. In February 2005, Mitsubishi Gas Chemical Company and Itochu Corporation, both of Japan, began a feasibility study to build a large petrochemical plant in Papua New Guinea, which if built would require large amounts of natural gas as a feedstock."

As previously noted a gas pipeline has been proposed for delivery of Papua New Guinea natural gas to urban and industrial areas of Australia. Engineering and design work on this pipeline is presently underway. On June 27, 2005, aluminum company Alcan Inc. announced it had reached an agreement with the PNG Gas Project to supply 43.5 petajoules of gas per year for twenty years, to its Gove refinery in Northern Australia. Furthermore, on July 5, 2005 Australian Gas Light Co. announced it had pledged to buy US$3.3 billion worth of gas from the PNG gas pipeline over a 20-year period, which according to Dow Jones Newswires "virtually guarantees an early 2006 go-ahead" for the pipeline project.

Cheetah Oil & Gas Ltd. also announces that it has opened its new head office in Calgary, Alberta, Canada at Suite 200, 809 Manning Rd. N.E., T2E 7M9.

The Company is evaluating and exploring for energy resources on its five 100%-owned and operated Petroleum Prospecting Licences and one Petroleum Retention License of approximately 8.3 million acres in Papua New Guinea.

Notice Regarding Forward Looking Statements

This news release contains "forward-looking statements", as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the potential re-entry of the Kuru #2 well, any re-completion of the Kuru #2 well, any subsequent testing of the Kuru #2 well, and if the re-entry is commenced, the length of time it will take to complete the operation.

Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with oil and gas exploration, particularly in Papua New Guinea; changes in reserve estimates if any; the potential productivity of our properties; changes in the operating costs and changes in economic conditions and conditions in oil and gas exploration. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-KSB for the 2004 fiscal year, our quarterly reports on Form 10-QSB and other current reports filed from time-to-time with the Securities and Exchange Commission.

Cheetah Oil & Gas Ltd. (OTC Bulletin Board:COGL - News)

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