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Friday, October 23, 2009 10:30:19 AM
Eastern Tennessee Oil Property
BAKERSFIELD, Calif., Oct. 22, 2009 (GLOBE NEWSWIRE) -- Cheyenne Resources Corp.
(OTCBB:CYRS), which focuses on pursuing major reclamation opportunities in the
domestic oil and gas sector, today reported on planned recovery strategies for
its West Oneida Project in Scott County, Tennessee. They will be immediately
implemented on closing of escrow.
"Based upon initial discussions with engineers, management believes that at the
end of the first six months, the pressure should be sufficient to yield
production of approximately 113 barrels of oil per day, or 3,400 barrels per
month. At an average continuing price of $70 per barrel, that should yield
approximately $250,000 revenue per month," according to Cheyenne Resources
President Thomas J. Cunningham.
"Management believes this is a straightforward secondary recovery project," said
Cunningham. "As part of the process, the company will utilize two compressors to
inject air to repressure the down hole formation, which is the Fort Payne
reservoir at an approximate depth of 1,800 feet."
The air injection will continue and should increase the down hole pressure by
approximately 2.5% per month for the next 9-12 months.
Assuming these estimates are correct, and that the company is able to continue
repressurizing the reservoir, this would put production at about 132 barrels of
oil per day at the end of month 12 and about 177 barrels daily by the end of the
second year.
"With a daily extraction level of 177 barrels daily, or more than 5,300 barrels
per month, the revenue level could climb to approximately $425,000 per month,"
Cunningham said.
Bolstering this potential, the president said, is the fact that more recent
estimates of original oil in place in this formation have increased to 31
million barrels. This is nearly triple the original estimate of 11.2 million
barrels.
For more information on the company, see www.cheyenne-energy.com
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