Cheetah Oil & Gas Ltd.

Cheetah Oil & Gas Ltd.

March 01, 2005 09:01 ET

Review of Reports on the Gas Reserves of Cheetah's Kuru and Bwata Fields


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CHEETAH OIL & GAS LTD.

OTC Bulletin Board SYMBOL: COGL

MARCH 1, 2005 - 09:01 ET

Review of Reports on the Gas Reserves of Cheetah's
Kuru and Bwata Fields

LAS VEGAS, NEVADA--(CCNMatthews - March 1, 2005) - Cheetah Oil & Gas
Ltd. (OTCBB:COGL) (the "Company") has received a report prepared by
Tayfun Babadagli, Ph.D, that reviews the known information of the Kuru
and Bwata hydrocarbon fields respectively located on and adjacent to
Cheetah's Petroleum Prospecting Licence (PPL) #246 and Cheetah's
Petroleum Development License (PDL) #13.

The Kuru-1 well was drilled in 1956 to a total depth of 296 metres (971
feet). Well logs indicate the Puri Limestone formation was encountered
from about 266 metres (872 feet) to total depth. Kuru-1 blew out for
roughly six months, during which time it blew with an estimated maximum
flow rate of 50 MMscf to 100MMscf per day. It was ultimately relieved
through the drilling of relief well Kuru #1A. The gas discovery was
confirmed by the Kuru-2 well also drilled in 1956.

The average thickness of the Puri Limestone formation was estimated as
149 metres (490 feet) based on both seismic information and structural
mapping.

Previous evaluations conducted in 1994 and again in 1997 estimated
between 73 Bcf (billion cubic feet) and 227 Bcf gas in the Kuru field,
located within Cheetah's PPL #246 and PRL #13. Additionally, an
estimated 52 Bcf to 245 Bcf of gas is evaluated to lie within the Bwata
field some 45km North East of the Kuru wells which is outside of
Cheetah's license.

The report's summary concludes that, "The recovery factor was assumed to
be 0.8 for both fields. This indicates a "good recovery" for the fields.
It is a difficult task to obtain a reliable estimate for the recovery
factor if there is no... production period for the fields and the fields
have not been under production yet. In this case, experience (especially
on similar fields) and benchmarking become important issues in the
estimation of the recovery factor. With Santos' vast experience in the
evaluation of oil and gas fields, it is believed that their gas reserves
assessments for the Kuru field (between 73 bcf and 227 bcf) and Bwata
field (52 bcf and 245 bcf) were arrived at using acceptable recovery
factor."

Commenting on this report, Garth Braun, CEO stated, "We are rapidly
strengthening our PNG knowledge base. Our 2005 operating goals include
the gathering and interpretation of as much geologic and engineering
data as possible. This is an encouraging piece of information that adds
to our expanding dataset."

The Company is further evaluating these previously drilled gas fields,
both to confirm the presence of gas and also to further explore the
possibilities of oil discoveries as have been reported by others more
recently on adjoining licenses with similar geologic features. The
Company considers the existence of similar geological features over long
distances to be of particular interest.

The Company is evaluating and exploring for energy resources on five
Petroleum Prospecting Licenses and one Petroleum Retention License which
have been granted to the Company and its majority owned subsidiary,
Scotia Petroleum Inc. These licenses cover approximately 8.3 million
acres. In order to concentrate its evaluation efforts on these
prospective core licenses, the Company has allowed its farm-in agreement
with Grey Creek Petroleum on two additional petroleum prospecting
licenses in Papua New Guinea to lapse. This farm-in agreement was
previously disclosed by the Company in a Form 8-K dated November 3, 2004.

Disclaimer: The Company relies upon the safe Harbor Laws of 1993, 1934,
and 1995 for all public news releases. The Company has no official gas
or oil reserves at this time and may not have sufficient funding to
thoroughly explore, drill or develop its properties. Little
infrastructure currently exists to support oil or gas production in many
areas of Papua New Guinea. Statements, which are not historical facts,
are forward-looking statements. The Company, through its management,
makes forward-looking public statements concerning its expected future
operations, performance and other developments. Such forward-looking
statements are necessarily estimates reflecting the Company's best
judgment based upon current information and involve a number of risks
and uncertainties, and there can be no assurance that other factors will
not affect the accuracy of such forward-looking statements. Although it
is impossible to identify all such factors they include and are not
limited to the existence of underground deposits of commercial
quantities of oil and gas; cessation or delays in exploration because of
mechanical, operating, financial or other problems; capital expenditures
that are either significantly higher or lower than anticipated; and from
the number of exploration opportunities being greater or fewer than
currently anticipated. Factors which could cause actual results to
differ materially from those estimated by the Company include, but are
not limited to, government regulation, managing and maintaining growth,
the effect of adverse publicity, litigation, competition and other
factors which may be identified from time to time in the Company's
public announcements.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Cheetah Oil & Gas Ltd.
    Andrea Bleasdale
    Toll Free: 1-888-228-9571
    www.cheetahoil.com