Cheyenne Energy Inc.
TSX VENTURE : CHY

Cheyenne Energy Inc.

August 24, 2005 09:00 ET

Cheyenne Energy Inc.: Financial & Operating Results for the Three and Six Months Ended June 30, 2005

CALGARY, ALBERTA--(CCNMatthews - Aug. 24, 2005) - Cheyenne Energy Inc. (TSX VENTURE:CHY) ("Cheyenne" or the "Company") is pleased to announce their financial and operating results for the three and six months ended June 30, 2005.



HIGHLIGHTS

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------------------------------------------------------------------------
Three months ended June 30 Six months ended June 30
2005 2004 Change 2005 2004 Change
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FINANCIAL
------------------------------------------------------------------------
Petroleum
and natural
gas revenue $1,330,757 $467,581 185% $1,838,368 $ 860,249 114%

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Cash flow
from
operations $ 381,324 $ 43,129 784% $ 437,176 $(118,033) (470)%
Per share
- basic
& diluted $ 0.02 $ 0.00 - $ 0.03 $ (0.01) (400)%

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Net income
(loss) $ 138,607 $ (5,524) (2609)% $ 95,317 $(142,914) (167)%
Per share
- basic
& diluted $ 0.01 $ 0.00 - $ 0.01 $ (0.01) (200)%

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Capital
expenditures,
net $ 338,621 $ 16,032 2012% $1,105,266 $ 277,857 298%

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Indebtedness
(including
working
capital) $2,407,186 $995,868 142% $2,407,186 $ 995,868 142%

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Common shares
outstanding
('000s)
Basic 14,169 10,423 36% 14,169 10,423 36%
Diluted 14,376 12,677 13% 14,376 12,677 13%
Weighted average
common shares
outstanding
('000s)
Basic 14,169 10,422 36% 14,169 10,410 36%
Diluted 14,216 11,177 27% 14,201 11,383 25%

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OPERATIONS
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Average daily
production
Crude oil and
NGLs (bbls/d) 12 9 33% 11 7 57%
Natural gas
(mcf/d) 1,761 633 178% 1,252 635 97%
Barrels of
oil
equivalent
(boe/d 6:1) 306 114 168% 219 113 94%

------------------------------------------------------------------------
Average product
prices realized
Crude oil
(Cdn$/bbl) $ 63.24 $ 51.14 24% $ 61.38 $ 48.47 27%
Natural gas
(Cdn$/mcf) $ 7.84 $ 7.42 6% $ 7.58 $ 6.87 10%
Barrels of
oil
equivalent
(Cdn$/boe) $ 47.78 $ 45.00 6% $ 46.32 $ 41.74 11%
------------------------------------------------------------------------
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In this report, all references to barrels of oil equivalent ("Boe") are calculated converting natural gas to oil at a ratio of six thousand cubic feet of natural gas to one barrel of oil.

Message to Shareholders

The first six months of 2005 have been exciting for Cheyenne. Production for the quarter from the Company's producing wells again achieved record levels despite a one month shut-in of a non-operated Camrose well. In the first quarter of 2005 the Company focused on the tie-in of the 93% working interest well at Cessford, which started commercial production in early March, and the second quarter saw the start of the drilling program with the drilling of a 100% well at Camrose. The Company is currently evaluating the results of this drill.

Since the close of the second quarter, the Company has raised over $1.0 million dollars through two separate private placement flow-through share offerings. The offerings were well received in the market and the funds will be used to continue the remaining drilling program in Cessford and Camrose, Alberta.

The remainder of 2005 will see the Company drill an additional two 100% interest Glauconite wells in the Camrose area and one Viking well is also planned in the Cessford area where the Company holds a 93% working interest. Each Glauconite well has the potential to add up to 300 boe/d and the Viking well has the potential to add up to 90 boe/d to the Company's production.

Cheyenne continues to enhance its depth of expertise and was pleased to welcome Lance Hogarth to the Board of Directors. Mr. Hogarth brings over 28 years of experience in the oil and gas industry to the Board and has extensive skills in the areas of reservoir engineering, reserves management, production development, and economic evaluations.

Additional information relating to Cheyenne can be found on SEDAR at www.sedar.com or on the Company's website at www.cheyenneenergy.com.

This news may contain forward-looking information. Actual future results may differ materially from those contemplated herein.


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

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