The company’s strategy is to develop a mix of low risk properties that consistently add cash flow as new wells are brought on-line and higher risk higher reward projects that could add hundreds of millions of dollars in reserves.
Leveraged Oil & Gas Portfolio
67% oil and 33% gas reserves
26.2 million barrels of oil equivalent (mmboe) in reserves with modest $4.5 million capital
expenditure budget = $0.17/boe
Strong Balance of PDP / PDNP / PUD Reserves
Low risk PDP/PDNP properties that add early and consistent cash flow to supplement capital infusion requirements with,
Higher relative-risk projects with huge upside accretive potential
3443 PDP/PDNP acreage & 10,000 PUD acres with 250 locations
Assets in Established, Historical Oilfield Areas
Proven multiple zone production on acreage or offset acreage
Shallow PUD reserves = lower risk and lower capital exposure
Projects
Management believes that one of the Company’s competitive advantages is its access to excellent projects in areas where either:
major established companies have spent the millions of dollars to take the risk out of finding and proving up an area, or
existing production has been obtained and recoverable reserves are established and documented.
Current Projects
The development of 200 natural gas wells -- in 10 well increments -- in Crockett County, TX.
The development of a secondary oil and natural gas recovery program that is comprised of 40 wells, with a 10 well at a time recovery program in Jim Wells County, TX.
The development of a secondary oil and natural gas recovery program developed initially with five oil wells in Taylor County, TX.
Oneida Property
Scott County, Tennessee
Conservative 1.5 mmboe reserves (PDP/PDNP)
62 oil, 15 gas and 7 oil/gas wells exist in the field
2280 acres–established shallow Fort Payne zone – 1800’
Existing, high demand for high btu value gas should fetch a premium on gas price
Reservoir Pressure Depletion Limited Production
Gas cap previously blown-down which depleted reservoir pressure and drive mechanism
Plan to re-establish gas cap to re-pressure reservoir & provide highly efficient gas cap expansion oil drive mechanism
Forecast 110 barrel of oil per day (bopd) after only 6 months of gas injection, 170 bopd after one year
Accretive Upside PUD Potential in Lower Zones
Trenton-Black River Carbonate (4000’) – productive on offset acreage – 10 bcf?
Famed Marcellus Shale PUD potential – 1,000,000 cubic feet of gas per day (1,000 mcfd) IP in the play – Several tcf?
Parks Williams Project
Callahan County, Texas
Within 38 miles of Abilene, TX
Established oilfield with over 90 historical wells (60 existing) with production from 300-4000’
Latent PDNP Oil Production Ready to RTP
6 wells recently fracture stimulated and ready to return to production
Plan to fracture stimulate and RTP up to 40 other wells – estimated production of up to 150 bopd
Primary objective: shallow Frye (Williams) zone above 1000’
Upside PUD/PDNP Potential in Lower Zones
Well known Upper Cook, Bluff Creek & Tannehill zones b/t 1,000-2,000’
Known offset productivity with favorable reservoir parameters represents additional reserve potential
Deeper zone potential down to 4000’ in Caddo and Duffer zones is essentially proved due to offsetting production
6 recent wells drilled to 4000’ – resulted in 4 productive oil/gas wells
Management
Thomas Cunningham, CEO/Director
Mr. Cunningham served as the Chief Financial Officer and Chief Administrative Officer of Tri Valley Corporation where he was responsible for accounting, finance and human resources. Tri-Valley is an AMEX listed company with several subsidiaries. He was heavily involved in moving Tri-Valley from the OTC:BB to the American Stock Exchange. One subsidiary, Tri-Valley Oil & Gas, is an oil and gas exploration company with activities in California and Nevada.
Mr. Cunningham also served as the Executive Vice President and Chief Financial Officer with Star Resources, an oil and gas exploration and production company. Prior to that, he was also employed by Forest Oil and Tesoro Petroleum in San Antonio, Texas and Tucker Drilling in San Angelo, Texas. Mr. Cunningham received his education at Angelo State University.
Robert A. (Bob) Bell, Advisory Committee
Mr. Bell has a 28-year, diverse, international and multi-disciplined engineering and progressive management background spanning major and independent Operators and the Service Sector. Over the last several years, Mr. Bell has served in Executive roles such as VP of Operations, VP of Exploration, and President/COO for independent oil companies with oil and gas exploration activity spanning California, the Rockies, the Gulf Coast, Texas, and the Mid-Continent region.
His technical and management career spans the full spectrum of oil and gas development from exploration and conceptual engineering to asset exploration and field implementation and includes drilling and completions, production optimization, reservoir engineering, planning, technology, and economic evaluations. Mr. Bell is a Petroleum & Natural Gas Engineering Graduate of Penn State University.
Recent CYRS News:
November 5-
Cheyenne Resources Invests $150,000 in Joint Venture With Oxalis Energy
Cheyenne Resources Corp. (OTCBB:CYRS), an emerging company focusing on the potential for major exploration and production reclamation projects in the oil and gas sector, today reported that the company has made an initial investment of $150,000 as part of phase one of four phases in its joint venture agreement with Oxalis Energy Group, Inc., based in Katy, Texas. Cheyenne Resources has a 50% working interest in this project.
"This payment represents the first part of our agreement with Oxalis to re-work 22 natural gas wells on a property in Crockett County, Texas," said Cheyenne Resources President Thomas J. Cunningham.
Recent geological reports estimate proven undeveloped reserves of 100 billion cubic feet of natural gas. Another recent reserve report suggests a potential valuation of $285 million to $423 million, using a base price of $3.50 per thousand cubic feet of natural gas.
"Our agreement with Oxalis Energy Group also gives us the opportunity to acquire the right to develop two other potential oil and gas transactions with Oxalis," said Cunningham. "Both of these projects are located in Texas.
"In Jim Wells County," Cunningham said, "we will be focused on development of a secondary oil and natural gas recovery program comprised of 40 wells, with a 10 well at a time recovery program. This site has proven reserves of 30 million barrels of oil and 17 billion cubic feet of natural gas.
"In Taylor County, we plan development of a secondary oil and natural gas recovery program developed initially with five oil wells. Proven reserves approximate 3 million barrels of oil equivalent."
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