Cheetah Oil & Gas Acquires Stake in Two Licenses in PNG

Cheetah Oil & Gas has reached a binding agreement with Grey Creek Petroleum Inc. in which Cheetah has acquired a 97.5% farm-in interest in two new Petroleum Prospecting Licenses ("PPL") in Papua New Guinea being PPL #257 and PPL #258. Cheetah is now evaluating and exploring oil and gas prospects over approximately 8.3 million acres in its five 100%-owned license areas in Papua New Guinea as well as the 3.9 million acres in these two new 97.5% farm-in licenses.

Payment in full for the 97.5% farm-in interest in PPL #257 and PPL #258 is 200,000 common shares of Cheetah. The Cheetah shares are restricted under the provisions of Rule 144, and are not eligible to be traded in the marketplace at this time.

PPL #257 encompasses 1.72 million acres located off shore of the East Coast of Papua New Guinea near the Cape Vogel Basin and the Kumusi and Buna Anticlines. Examinations of historical data indicates the theoretical possibility of a potential hydrocarbon-bearing structure that could hold the equivalent of up to 1.4 billion barrels of oil.

PPL #258 is located in the East Sepik Province of Papua New Guinea covering a total of 2.2 million acres in the North Niugini Basin. This East Sepik Basin has been ranked as having the second-highest oil prospects of any nearby basins.

Garth Braun, Chairman and CEO of Cheetah Oil & Gas Ltd, says that "With these latest farm-in interest acquisitions, Cheetah has achieved a strategic position on many of the most highly sought-after prospective areas in Papua New Guinea. Our seven Petroleum Prospecting Licenses are located along the Northern Coast, close to more prolific areas of Indonesia; along the North-Eastern Coast; and throughout the currently oil producing Central Highlands."

Chief Geologist Jack Sari notes that "In aggregate, tens of millions of dollars has historically been spent exploring and acquiring data throughout the properties we now hold or control. Never before has a single company acquired all these land positions and all this data, giving us a major step forward as we work to understand the geological potential."