Stealth Energy Inc.
CNQ : STLH

Stealth Energy Inc.

March 03, 2008 17:22 ET

Stealth Energy Inc.: East Teapot (Wyoming) Project Agreement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 3, 2008) - Stealth Energy Inc. (CNQ:STLH) -

The Company is pleased to announce the execution of a binding letter of agreement with Crazy Mountain LLC of Montana USA for the lease of 1200 acres located within the Powder River Basin in Natrona County, Wyoming, USA and known as the East Teapot Dome. As there are interests held by directors of the Company in Crazy Mountain LLC and associated companies doing business with Crazy Mountain, the negotiation and approval of the transaction has been carried out by the independent directors of the Company. This transaction is subject to the approval of the CNQ Exchange.

An independent valuation of the property was recently conducted by Jake Oil & Gas Consultants LLC of Billings, Montana USA, who placed a fair market value for the East Teapot Dome at $16.699 million USD. The lease is for $150,000 USD a month commencing March 1st 2008 and expiring September 1st 2013. There is provision to prepay the lease at the sole discretion of the Company before June 1st 2008, for $6 million US. In consideration of $600,000 USD the Company may at any time during the term of the lease exercise a right to purchase the title for an exercise amount of $500,000 USD so long as the prepayment amount is satisfied.

East Teapot Dome is adjacent to the U.S. Naval Petroleum Reserve #3 and has produced 2.5 million barrels of oil. The independent analysis for the project estimates the working interest (WI) reserve potential at 7.6 million net barrels. The Company has retained Jake Oil & Gas Consultants LLC to be the lead engineering and geological consultant for the development of the East Teapot Dome project. Crews are scheduled to mobilize equipment on site this week.

Mr. Stuart Angus, a member of the Company's independent directors, states, "This lease is extremely beneficial to the Company and is of exceptional value. In short this should be the cornerstone for the Company as an oil producer, and the foundation for the Company's future growth."

Stealth Energy Inc. is an oil & gas exploration company with its field office in Billings, Montana, USA. The company intends to acquire and develop its own exploration and development oil and gas properties primarily in the states of Montana and Wyoming.

Stealth Energy Inc.

R. Stuart Angus, Director

15,388,332 Shares Outstanding

The CNQ Exchange has not reviewed this news release and does not accept responsibility for its adequacy or accuracy.

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