Cheyenne Energy Inc.
TSX VENTURE : CHY

Cheyenne Energy Inc.

May 26, 2005 09:30 ET

Cheyenne Energy Inc.: Record Production Levels & Financial & Operating Results for the Three Months Ended March 31, 2005

CALGARY, ALBERTA--(CCNMatthews - May 26, 2005) - Cheyenne Energy Inc. (TSX VENTURE:CHY) ("Cheyenne" or the "Company") has achieved record production levels with current corporate production approximately 365 boe/day. The Company is pleased to announce their financial and operating results for the three months ended March 31, 2005.



HIGHLIGHTS

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Three months ended Three months ended
March 31, 2005 March 31, 2004
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FINANCIAL
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Petroleum and natural gas revenue $507,611 $392,668

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Cash flow from operations $55,852 $(161,162)
Per share - basic & diluted $0.00 $(0.01)

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Net income (loss) $(43,290) $(137,390)
Per share - basic & diluted $0.00 $(0.01)

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Capital expenditures, net $766,645 $261,825

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Indebtedness (including
working capital) $2,449,889 $1,024,090

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Common shares outstanding
Basic 14,169,018 10,418,014
Diluted 14,375,697 12,674,542
Weighted average common
shares outstanding
Basic 14,169,018 10,397,797
Diluted 14,186,798 11,533,248

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OPERATIONS
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Average daily production
Crude oil and NGLs (bbls/d) 9 6
Natural gas (mcf/d) 737 630
Barrels of oil equivalent (boe/d at 6:1) 132 112

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Average product prices realized
Crude oil (Cdn$/bbl) $58.49 $44.73
Natural gas (Cdn$/mcf) $6.97 $6.41
Barrels of oil equivalent (Cdn$/boe) $42.89 $38.43
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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 quarter of 2005 saw Cheyenne focus on the tie-in of the 93% working interest well at Cessford, which started commercial production in early March. The Company's average production increased to 132 boe/d for the quarter, the highest quarterly production reported for the Company. This was an 18% increase over the same three month period of the previous year and a 100% increase over the fourth quarter of 2004.

Cheyenne also faced additional downtime at one of the Camrose wells during the quarter as the Company struggled with mechanical troubles. The Company is confident that the mechanical problems have been resolved and production on the well has stabilized and remains constant.

The Company also acquired additional undeveloped acreage in the Hawk area of northern Alberta to add to the exploratory project being evaluated in the area.

For the remainder of 2005, the Company plans to drill three 100% interest Glauconite wells in the Camrose area, with the first well to be spudded by early June. One Viking well is also planned in the Cessford area where the Company holds a 93% working interest. Each of the Glauconite wells have 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 overall production.

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.

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

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news may contain forward-looking information. Actual future results may differ materially from those contemplated herein.

http://www.cheyenneenergy.com

Contact Information

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