Cheyenne Energy Inc.

Cheyenne Energy Inc.

December 27, 2006 19:07 ET

Cheyenne Announces Closing of Private Placement

CALGARY, ALBERTA--(CCNMatthews - Dec. 27, 2006) - Cheyenne Energy Inc. (TSX VENTURE:CHY) ("Cheyenne" or the "Company") today announced that it has closed its previously announced private placement offering for a total of 4,925,138 flow-through common shares issued at $0.35 per flow-through share and a total of 1,714,815 units at $0.32 per unit for total gross proceeds of approximately $2.3 million. Each unit consists of one common share plus one warrant to purchase an additional common share at a price of $0.65 per share with an expiry of 18 months from the date of issuance. The Company agreed to pay a commission of 7.25% of the gross proceeds and broker warrants equal to 10% of the securities sold. All securities were issued subject to trading restrictions until April 27, 2007.

Proceeds from the offering will be used for further development of the Company's Hawk play in northwestern Alberta and for working capital.

The financing was led by Wellington West Capital Inc. of Winnipeg, Manitoba.

Cheyenne Energy Inc. is a public energy company engaged in the exploration for and development and production of crude oil and natural gas, primarily in Western Canada. Cheyenne's corporate strategy is to grow and develop oil and gas reserves through the drill bit and add value for its shareholders.

This press release contains forward-looking statements. These forward-looking statements can generally be identified as such because of the context of the statements including words such as the Company "believes", "anticipates", "expects", "plans", "may", "estimates" or words of a similar nature. These statements are based on current expectations and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Accordingly, readers are cautioned and no assurances can be given that any of the events anticipated by the forward-looking statements will occur, or if any of them do so, what benefits that we will derive there from. The Company does not undertake any obligation to publicly update or revise any forward-looking statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Cheyenne Energy Inc.
    Tim Cooney
    President & CEO
    (403) 296-2590
    Cheyenne Energy Inc.
    Adeline Roth
    Vice President Finance & CFO
    (403) 296-2590