Storm Cat Energy Corporation

Storm Cat Energy Corporation

July 13, 2005 09:25 ET

Storm Cat Update on Mongolia CBM Projects

CALGARY, ALBERTA--(CCNMatthews - July 13, 2005) - Storm Cat Energy Corporation (TSX VENTURE:SME) (the "Company") acquired its Noyon coal bed methane (CBM) exploration License on 49,000 km2 of land in the form of a Production Sharing Contract (PSC) with the Petroleum Authority of Mongolia in 2004. Under the terms of the PSC, Storm Cat gained exclusive rights to explore and develop coal bed methane (CBM) resources located in parts of the Nemegt-VI and Borzon-VII petroleum exploration areas in the Noyon Uul region in Omnogovi Aimag (South Gobi Province) of Mongolia.

The CBM exploration target is coal located in the Upper Permian and Triassic formations that outcrop in the southern Gobi Desert of south central Mongolia Storm Cat's CBM exploration work in the contract area has been designated as the Noyon Mongolia CBM Project and consisted of mapping coal outcrops, drilling core holes, collecting coal core samples, and determining the potential CBM resources for the project area.

Storm Cat's Noyon field exploration program commenced in the summer of 2004 and ended in early March of 2005. The investigation area consisted of a 144 km long and a 10 to 20 km wide band of relatively steeply dipping, folded and faulted Upper Permian, Triassic and Jurassic strata in the hanging wall of the Nariin Sukhait Thrust Fault. This fault brought the coal-bearing Upper Permian and Triassic strata to the surface. Six preliminary geological maps, covering a 1,900 km2 area, were compiled.

In addition to the geological mapping, Storm Cat drilled a series of 11 core holes to evaluate the location and quality of coals in the six mapped areas. In 2004 and 2005, the Company followed up by drilling 5 additional deep core holes to better determine the thickness and gas content of the coal. Four (4) of the core holes, the Noyon #1, #2, #3 and #4, were drilled and cored in the Central Nariin Sukhait area. The fifth core hole was drilled and cored in the Erdene Bulag area over 200 kilometers to the east. The results of the coring and desorption are as follows:

- The coal rank is high Volatile C Bituminous

- Vitrinite reflectance Ro equals 0.62%.

- Twenty-one (21) coal seams were penetrated

- Total coal thickness of 76.6 meters.

- Gas content of these coals ranged from 75.7 scf/ton to 379.9 scf/ton

Storm Cat has estimated the potential CBM resource of the Nariin Sukhait area to range from 0.6 to 1.2 trillion cubic feet (TCF), with a best estimate of 0.9 TCF. This resource estimate is based on the volume of coal estimated to exist at depths shallower than 1,500 meter drill depth, combined with average gas contents obtained from desorption analyses. While the potential resource is relatively large, no economic reserves have been identified.

Storm Cat acquired its interest in the Tsaidam Exploration Contract in December 2004 for the purpose of drilling for natural gas from coals within the close proximity to Ulaanbaatar, the country's capital. Recently, Storm Cat negotiated an extension of the Tsaidam block area to include an additional 5,632 km2, increasing the total contract area to 28,039 km2 (6,928,436 acres).

Based on these results from our initial drilling in this remote area, it is Storm Cat's opinion that more geological review is necessary to determine the viability of the Noyon Prospect. Such being the case, Storm Cat has elected to 1) re-focus its efforts on the Tsaidam Prospect located in the close proximity of the Capital City of Ulaanbaatar where we now have a US$600,000 work commitment, and 2) seek out an appropriate joint venture partner to take over the lead role in the exploration of our Mongolian assets.

By Order of the Board of Directors

Storm Cat Energy Corporation

J. Scott Zimmerman, President and Chief Executive Officer

CAUTIONARY STATEMENT: This publication contains certain "forward-looking statements", as defined in the United States Private Securities Litigation Reform Act of 1995. Such statements are based on the Company's current expectations, estimates and projections about the industry, management's beliefs and certain assumptions made by it; and involve a number of risks and uncertainties including but not limited to economic, competitive, governmental and geological factors effecting the Company's operations, markets, products and prices and other risk factors. Words such as "anticipates", "expects", "intends", "plans", "believes" or similar expressions are intended to identify forward-looking statements. There can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include the volatility of natural gas prices, the possibility that exploration efforts will not yield economically recoverable quantities of gas, accidents and other risks associated with gas exploration and development operations, the Company's need for and availability of additional financing, and the other risk factors discussed in greater detail in the Company's various filings with the Securities and Exchange Commission and Canadian securities regulators, including the Company's Form 20-F dated July 1, 2005.

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

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