EX-99.1
3
v052072_ex99-1.htm
Exhibit
99.1
FOR
IMMEDIATE RELEASE
Storm
Cat Energy Corporation
1125
17
th
Street, Suite 2310
Denver,
Colorado 80202
Company
Contact
:
J.
Scott
Zimmerman, President
and CEO
Paul
Wiesner, Chief Financial Officer
87-STORMCAT
www.stormcatenergy.com
STORM
CAT ENERGY
COMPLETES POWDER RIVER BASIN
ACQUISITION
Denver,
Colorado, and Calgary, Alberta
,
August
30, 2006 - Storm Cat Energy Corporation (AMEX: SCU, TSX: SME) today announced
it
has successfully closed the purchase of approximately 25,200 gross acres (17,000
net acres) in the Powder River Basin for approximately U.S.$30.7 million in
cash. The producing property, reserves and undeveloped leasehold, located in
and
around Storm Cat's core Powder River Basin coalbed methane operating area,
allows the Company to capitalize on economies of scale and operating
efficiencies. The acreage is approximately 81% undeveloped and 90% of the
acreage is located on U.S. federal lands. The effective date of the transaction
is July 1, 2006.
Storm
Cat
is acquiring approximately 10.2 Bcf of proved reserves, 9.6 Bcf of probable
reserves and 7.8 Bcf of possible reserves. Pro forma for the acquisition, Storm
Cat will have approximately 19.8 Bcf of proved reserves, 13.8 Bcf of probable
reserves and 7.9 Bcf of possible reserves. Storm Cat's reserve quantity
estimations were evaluated by Netherland Sewell & Associates (NSAI), a
Dallas-based, independent reservoir engineering firm.
DENVER,
COLORADO 1125 17th St. Suite 2310 | Denver, Colorado, USA 80202 | Tel (303)
991-5070 Fax (303) 991-5075
CALGARY,
ALBERTA Suite 200, 209-8th Avenue | Calgary, Alberta, Canada T2P 1B8 | Tel (403)
451-5070 Fax (403) 451-5075
MONGOLIA
Suite
21, P.M. Amar's Street 2 | Tavan Bogd Plaza, Sukhbaatar District | Ulaanbaatar,
Mongolia | Tel 976-11-33-0464
Gas
production from the acquired properties is approximately 6,600 Mcf/d,
(approximately 3,000 Mcf/d net), of natural gas from 64 producing CBNG (coal
bed
natural gas) wells, 46 of which will be operated by Storm Cat.
J.
Scott
Zimmerman, President and Chief Executive Officer commented, "Today's Powder
River Basin acquisition represents a major increase in the Company's reserve and
production capabilities in the basin. Given the close proximity to our current
Powder River CBNG operations, we view this as a strategic fit to our asset
base.
Additionally, these properties can be developed using the multi-seam completion
technique that provides for increased recovery and reduced finding and
development costs, ultimately maximizing the value of the asset. We are excited
about the potential opportunities this property presents for the Company and
its
shareholders".
The
proceeds from a recently completed $15 million secured mezzanine facility as
well as funds from the Company's $250 million revolving credit facility were
used to fund the acquisition.
By
Order
of the Board of Directors
Storm
Cat
Energy Corporation
J.
Scott
Zimmerman
President
and Chief Executive Officer
About
Storm Cat Energy Corporation
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, exploration and development acreage in Canada
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."
Forward-Looking
Statements
This
press release contains certain "forward-looking statements", as defined in the
United States Private Securities Litigation Reform Act of 1995 relating to
matters such as the Company's drilling and other exploration plans and projected
well economics. 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; including production and reserve estimates, and potential benefits to
Storm Cat of such acquisitions, 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 are not limited to receipt of necessary
approval from regulatory bodies, the failure to achieve the anticipated benefits
of the acquisition, the failure to close the acquisition, 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 20-F for
the fiscal year ended December 31, 2005.
NO
STOCK
EXCHANGE HAS REVIEWED OR ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY
OF
THIS NEWS RELEASE.
####

EX - 99 . 1 3 v052072 _ ex99 - 1 . htm Exhibit 99 . 1 FOR IMMEDIATE RELEASE Storm Cat Energy Corporation 1125 17 th Street , Suite 2310 Denver , Colorado 80202 Company Contact : J . Scott Zimmerman , President and CEO Paul Wiesner , Chief Financial Officer 87 - STORMCAT www.stormcatenergy.com STORM CAT ENERGY COMPLETES POWDER RIVER BASIN ACQUISITION Denver , Colorado , and Calgary , Alberta , August 30 , 2006 - Storm Cat Energy Corporation ( AMEX : SCU , TSX : SME ) today announced it has successfully closed the purchase of approximately 25,200 gross acres ( 17,000 net acres ) in the Powder River Basin for approximately U . S . $ 30.7 million in cash . The producing property , reserves and undeveloped leasehold , located in and around Storm Cat 's core Powder River Basin coalbed methane operating area , allows the Company to capitalize on economies of scale and operating efficiencies . The acreage is approximately 81 % undeveloped and 90 % of the acreage is located on U . S . federal lands . The effective date of the transaction is July 1 , 2006 . Storm Cat is acquiring approximately 10.2 Bcf of proved reserves , 9.6 Bcf of probable reserves and 7.8 Bcf of possible reserves . Pro forma for the acquisition , Storm Cat will have approximately 19.8 Bcf of proved reserves , 13.8 Bcf of probable reserves and 7.9 Bcf of possible reserves . Storm Cat 's reserve quantity estimations were evaluated by Netherland Sewell & Associates ( NSAI ) , a Dallas - based , independent reservoir engineering firm . DENVER , COLORADO 1125 17th St. Suite 2310 | Denver , Colorado , USA 80202 | Tel ( 303 ) 991 - 5070 Fax ( 303 ) 991 - 5075 CALGARY , ALBERTA Suite 200 , 209 - 8th Avenue | Calgary , Alberta , Canada T2P 1B8 | Tel ( 403 ) 451 - 5070 Fax ( 403 ) 451 - 5075 MONGOLIA Suite 21 , P . M . Amar 's Street 2 | Tavan Bogd Plaza , Sukhbaatar District | Ulaanbaatar , Mongolia | Tel 976 - 11 - 33 - 0464 Gas production from the acquired properties is approximately 6,600 Mcf / d , ( approximately 3,000 Mcf / d net ) , of natural gas from 64 producing CBNG ( coal bed natural gas ) wells , 46 of which will be operated by Storm Cat . J . Scott Zimmerman , President and Chief Executive Officer commented , " Today ' s Powder River Basin acquisition represents a major increase in the Company 's reserve and production capabilities in the basin . Given the close proximity to our current Powder River CBNG operations , we view this as a strategic fit to our asset base . Additionally , these properties can be developed using the multi - seam completion technique that provides for increased recovery and reduced finding and development costs , ultimately maximizing the value of the asset . We are excited about the potential opportunities this property presents for the Company and its shareholders " . The proceeds from a recently completed $ 15 million secured mezzanine facility as well as funds from the Company 's $ 250 million revolving credit facility were used to fund the acquisition . By Order of the Board of Directors Storm Cat Energy Corporation J . Scott Zimmerman President and Chief Executive Officer About Storm Cat Energy Corporation 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 , exploration and development acreage in Canada 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 . " Forward - Looking Statements This press release contains certain " forward - looking statements " , as defined in the United States Private Securities Litigation Reform Act of 1995 relating to matters such as the Company 's drilling and other exploration plans and projected well economics . 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 ; including production and reserve estimates , and potential benefits to Storm Cat of such acquisitions , 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 are not limited to receipt of necessary approval from regulatory bodies , the failure to achieve the anticipated benefits of the acquisition , the failure to close the acquisition , 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 20 - F for the fiscal year ended December 31 , 2005 . NO STOCK EXCHANGE HAS REVIEWED OR ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE . # # # #