DENVER and CALGARY, Alberta, April 19 /CNW/ -- Storm Cat Energy
Corporation (Amex: SCU; TSX: SME) today announced that its Board of Directors
has approved an initial 2007 capital budget totalling US$40.0 million.
The 2007 capital budget includes US$20.0 million for drilling of
approximately 150 wells in the Powder River Basin; US$10.0 million to initiate
Storm Cat operated development wells in the Fayetteville Shale; US$4.0 million
in Elk Valley to maintain de-watering operations and operate existing
production; and US$6.0 million in Alberta for drilling and completion
activities. The US$40.0 million capital budget will be funded through cash
flow from operations and cash on hand augmented in part by the existing
US$35.0 million reserve-based revolving line of credit with JP Morgan, of
which US$10.0 million was drawn at March 31, 2007, and the Company's recent
US$50 million subordinated debt financing.
The 2007 capital budget may be revised based on drilling rig and oilfield
service availability, drilling results, operational developments,
unanticipated transaction opportunities, market conditions and commodity price
Acting Storm Cat President and CEO, Keith J. Knapstad, said: "For a
company of our size, we are fortunate to possess a high quality, complementary
asset portfolio. I expect 2007 to be a year of transformation and continued
growth for Storm Cat as we advance our core operating areas. We intend to
increase our asset value in the Powder River Basin through continued
aggressive development activities. Additionally, we are eager to shift our
Fayetteville shale assets from an acreage play to an active production play.
We will build meaningful net asset value in the Fayetteville through drill-bit
success in 2007. We were able to put together an attractive position in the
Fayetteville in advance of industry interest and are pleased with the
improving economics and expanding production extent of this prolific play.
Further, we will maintain our diligent work in Elk Valley by continuing our
dewatering efforts so we can best determine the economic viability of this
project. Storm Cat's 2007 goals are achievable and, equally important, are
fully funded due to recent successful financing activities."
About Storm Cat Energy
Storm Cat Energy is an independent oil and gas company focused on the
pursuit, exploration and development of large unconventional gas reserves from
fractured shales, coal beds and tight sand formations. The Company has
producing properties in Wyoming's Powder River Basin, and exploitation and
development acreage in Canada, Arkansas and Alaska. The Company's shares
trade on the American Stock Exchange under the symbol "SCU" and in Canada on
the Toronto Stock Exchange under the symbol "SME."
This press release contains certain "forward-looking statements", as
defined in the United States Private Securities Litigation Reform Act of 1995,
and within the meaning of Canadian securities legislation, relating to the
proposed use of proceeds. Forward-looking statements are statements that are
not historical facts; they are generally, but not always, identified by the
words "expects," "plans," "anticipates," "believes," "intends," "estimates,"
"projects," "aims," "potential," "goal," "objective," "prospective," and
similar expressions, or that events or conditions "will," "would," "may,"
"can," "could" or "should" occur. Forward-looking statements are based on the
beliefs, estimates and opinions of Storm Cat's management on the date the
statements are made and they involve a number of risks and uncertainties.
Consequently, 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. Storm Cat undertakes no obligation to
update these forward-looking statements if management's beliefs, estimates or
opinions, or other factors, should change. Factors that could cause future
results to differ materially from those anticipated in these forward-looking
statements include, but a change in the use of proceeds, 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 risk that the
Company will encounter unanticipated geological factors, the Company's need
for and ability to obtain additional financing, the possibility that the
Company may not be able to secure permitting and other governmental clearances
necessary to carry out the Company's exploration and development plans, and
the other risk factors discussed in greater detail in the Company's various
filings on SEDAR (www.sedar.com) with Canadian securities regulators and its
filings with the U.S. Securities and Exchange Commission, including the
Company's Form 10-K for the fiscal year ended December 31, 2006.
NO STOCK EXCHANGE HAS REVIEWED OR ACCEPTS RESPONSIBILITY
FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
For further information:
For further information: William Kent, Director, Investor Relations of
Storm Cat Energy Corporation, +1-303-991-5070 Web Site: