Storm Cat 2007 Proved Reserves Up 78%

Storm Cat Energy Corporation announced its 2007 proved reserve estimates and year-end production results.

At year-end 2007, Storm Cat had proved reserves of 44.5 billion cubic feet (Bcf), 78% higher than year-end 2006 reserves of 25.0 Bcf. Approximately 61% of the proved reserves, or 27.3 Bcf, were classified as proved developed, an increase of 104% over proved developed reserves at year-end 2006. Storm Cat's reserves are primarily located in Wyoming's Powder River Basin (PRB), and secondarily in Arkansas' Arkoma basin (Fayetteville Shale). The company achieved a full year reserve replacement rate of 718%.

Storm Cat's estimated, pre-tax future net cash flow discounted at 10% (commonly known as the SEC PV-10 value) for proved reserves at year-end was $98.4 million. The 2007 PV-10 calculation employed a year-end Colorado Interstate Gas (CIG) commodity price of $6.04 per million British thermal units (MMbtu) and $6.215 per MMbtu for the Fayetteville Shale reserves. The PV-10 value does not include the effect of Storm Cat's financial hedges. All reserve estimates were prepared by the Company's independent reservoir engineering firm, Netherland, Sewell & Associates, Inc. (NSAI).

In addition to the SEC proved reserve report, NSAI also estimated year end proved, possible and probable reserves using year-end 2007 strip pricing. Proved reserves were 45.6 Bcf, probable reserves were 10.9 Bcf and possible reserves were 25.2 Bcf. The PV-10 value using year-end strip pricing was $136.5 million for proved reserves and $204.8 for all categories.


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