Cheetah Oil & Gas Ltd. Corporate Update
February 03 2010 - 9:30AM
Business Wire
Cheetah Oil & Gas Ltd. (COHG - OTCBB), (the "Company" or
"Cheetah") provides the following information to update
shareholders on general developments.
DRILLING AND PRODUCTION
The Company continues to wait for acceptable ground conditions
at Belmont Lake, Mississippi in order to be able to drill the
awaited PP F12-4 horizontal well. Using data supplied by the US
Army Corps of Engineers website, the Mississippi river levels since
early summer 2008, have been at times among the highest recorded
since consistent records were kept beginning in 1941. There was not
a sufficient interval during all of 2009 to safely access the
Belmont Lake site long enough to be able to drill the expected
horizontal well. Our operators require roughly 4-5 uninterrupted
weeks of water levels below 34 feet measured at Natchez, in order
to be able to drill the new horizontal well. On average since 1941
the river as measured at Natchez is below 34 feet for roughly 9
months each year.
Likewise, the Company requires about 10 days below 34 feet water
level to be able to access Belmont Lake in order to conduct normal
well maintenance and treatments, which also have not been possible
recently due to the high river water. As a result, current
production is lower than its potential until such maintenance can
be performed.
ANNUAL REPORT AND PROVEN RESERVES
The Company is currently completing its 10-K for the year ending
December 31 2009. When our report is completed and filed we will be
able to update shareholders with the Company’s first ever proven,
producing reserve report.
Cheetah is working towards maximizing shareholder value in as
low a risk manner as possible, which it believes starts with
developing the proved Belmont Lake oil field. Utilizing expected
improved cash flows as a result of full development at Belmont
Lake, the Company would then expand its drilling efforts in nearby
areas where it has a 40% gross interest in 38 exploration wells to
be drilled. Cheetah is also examining other potential transactions
in an effort to grow the Company as quickly and responsibly as
possible, so that not all growth must necessarily be internal.
About Cheetah:
To learn more about Cheetah Oil & Gas Ltd. visit
www.cheetahoil.com.
ON BEHALF OF THE BOARD
"Robert McAllister"
Mr. Robert McAllister, President
FORWARD-LOOKING STATEMENTS
This release includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
Statements which are not historical facts are forward-looking
statements. The Company makes forward-looking public statements
concerning its expected future financial position, results of
operations, cash flows, financing plans, business strategy,
products and services, competitive positions, growth opportunities,
plans and objectives of management for future operations, including
statements that include words such as "anticipate," "if,"
"believe," "plan," "estimate," "expect," "intend," "may," "could,"
"should," "will," and other similar expressions are forward-looking
statements. Such forward-looking statements are estimates
reflecting the Company's best judgment based upon current
information and involve a number of risks and uncertainties, and
there can be no assurance that other factors will not affect the
accuracy of such forward-looking statements. It is impossible to
identify all such factors but they include and are not limited to
the existence of underground deposits of commercial quantities of
oil and gas; cessation or delays in exploration because of
mechanical, weather, operating, financial or other problems;
capital expenditures that are higher than anticipated; or
exploration opportunities being fewer than currently anticipated.
There can be no assurance that expected oil and gas production will
actually materialize; and thus no assurance that expected revenue
will actually occur. There is no assurance the Company will have
sufficient funds to drill additional wells, or to complete
acquisitions or other business transactions. Such forward looking
statements also include estimated cash flows, revenue and current
and/or future rates of production of oil and natural gas, which can
and will fluctuate for a variety of reasons; oil and gas reserve
quantities produced by third parties; and intentions to participate
in future exploration drilling. Adverse weather conditions can
delay operations, impact production, and cause reductions in
revenue. The Company may not have sufficient expertise to
thoroughly exploit its oil and gas properties. The Company may not
have sufficient funding to thoroughly explore, drill or develop its
properties. Access to capital, or lack thereof, is a major risk.
Current oil and gas production rates may not be sustainable and
targeted production rates may not occur. Factors which could cause
actual results to differ materially from those estimated by the
Company include, but are not limited to, government regulation,
managing and maintaining growth, the effect of adverse publicity,
litigation, competition and other factors which may be identified
from time to time in the Company's public announcements and
filings.
Cautionary Note to U.S. Investors
In this press release, we have disclosed our proved reserves
using the SEC's definition of proved reserves. Proved reserves are
estimated quantities that geological and engineering data
demonstrate with reasonable certainty to be recoverable in the
future from known reservoirs under the assumed economic conditions.
Although the SEC now allows companies to report probable and
possible reserves, we have elected not to report on such basis.
Investors are urged to closely consider the disclosures and risk
factors in our Forms 10-K and 10-Q, available from our offices or
on EDGAR at www.sec.gov, including the inherent uncertainties in
estimating quantities of proved reserves.
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