Storm Cat Energy Corporation

Storm Cat Energy Corporation

March 30, 2005 09:01 ET

Storm Cat Update on North American Projects


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: STORM CAT ENERGY CORPORATION

TSX VENTURE SYMBOL: SME

MARCH 30, 2005 - 09:01 ET

Storm Cat Update on North American Projects

CALGARY, ALBERTA--(CCNMatthews - March 30, 2005) - Storm Cat Energy
Corp. (TSX VENTURE:SME) (the "Company") is pleased to provide a progress
report on its portfolio of North American projects.

Powder River Basin, Wyoming, USA

On February 28th, 2005, Storm Cat completed the purchase of the North
East Spotted Horse Field from Palo Petroleum Inc. This asset consists of
71 wells (69 operated), currently producing approximately 2.6 mmcfd from
various Fort Union coal seams. 100 percent of the 6,320 gross contiguous
acres are categorized by Sproule and Associates as proven and probable
reserves. Over 80% of the acreage is undeveloped. Storm Cat will
initiate drilling on the undeveloped acreage in an effort to increase
production and re-categorize probable reserves as proven. The initial
drilling program will consist of drilling up to 20 wells on State lands
commencing in May, 2005. Additionally, it is the Company's intention to
file Federal Plans Of Development which is required to be filed prior to
receiving Federal Applications to Drill (APD). Storm Cat expects to
receive the approved APD's by late third Quarter for up to 64 wells
which will allow drilling by the fourth quarter 2005.

Due to recent strength in the price of natural gas, Storm Cat has
entered into a hedging arrangement by selling forward 1mmcf/d from the
Spotted Horse Field at US $6.95/mcf for one year.

The Company's Jamison/North Twenty Mile fields, currently producing
approximately 1mmcf/d, is now under going a comprehensive recompletion
and rework program. This program comprises pulling and reinstalling
bottomhole pumps, re-perforating currently producing formations and
deepening some wells to test new zones. Management anticipates this
program will enhance gross production to approximately 1.8 mmcf/d,
resulting in less than a two-year payout of acquisition and development
expenditures.

A second program, of primarily drilling new wells to further enhance
production from this property, is planned for third quarter, 2005. Zones
of interest under this program are the Smith, Cook and the Wall coal
seams.

Western Canada

On February 22, 2005, the Company announced it completed a farm-in
agreement on a contiguous 235,830 acre exploration permit in eastern
Saskatchewan This agreement provides Storm Cat, the project operator,
with a 45 per-cent working interest before payout and 30 percent after
payout. The Moose Mountain project, is classified as a large
unconventional gas play of which Storm Cat's management has considerable
experience in developing.

Storm Cat and it's joint venture partner have now identified an
exploration program for this project. Land sat imagery, geochemical
testing, aero-magnetic surveys and subsurface geological testing will be
employed in the first phase to identify drilling locations. It is
expected by late May, 2005, the second part of the program will
commence, consisting of drilling in two distinct areas with up to six
wells anticipated, subject to spring breakup. Initially, completed well
costs are estimated at CDN $170m. If gas accumulations are found as
expected, first production is estimated for January, 2006. Currently,
gas is being sold in this area at CDN $6.75/mcf.

Storm Cat's management is a strong believer in Western Canadian untapped
unconventional gas reserves. Accordingly, the Company is currently
conducting negotiations on other areas in western Canada, in which
management feels are highly prospective. It is anticipated that further
acquisitions will result from these negotiations.

Cook Inlet, Alaska, USA

Storm Cat now holds 100 percent working interest in 22,126 acres in the
Cook Inlet region of Alaska. The Company is currently completing a
geological evaluation to establish optimal drill targets on these lands.
A series of low cost exploration wells are anticipated for the third
quarter, 2005. The Mat-Su Valley area, north of Anchorage is one of the
fastest growing areas in Alaska and one which will greatly benefit as
commercial gas resources are developed. Storm Cat is also evaluating
additional land positions in the area for potential acquisition.

Storm Cat Energy Corp. is a growing exploration company focusing on
developing unconventional natural gas reserves globally. The company's
primary objective is to create value for its shareholders by applying
strong technical expertise to strategies that will unlock substantial
natural gas resources in areas where production can be achieved quickly
and efficiently.

By Order of the Board of Directors

Storm Cat Energy Corporation

J. Scott Zimmerman, President

CAUTIONARY STATEMENT

This news release contains certain "forward looking statements", as
defined in the United States Private Securities Litigation Reform Act of
1995, that 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. 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 June 23,
2004.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    The Kottmeier Resolution Group
    Kris Kottmeier
    Investor Relations
    Toll Free: 1-87STORMCAT (1-877-867-6228)
    info@stormcatenergy.com
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.