Cheetah Applies for Petroleum Retention License

Cheetah Oil & Gas has submitted to the Papua New Guinea Department of Petroleum and Energy, an application for a Petroleum Retention License regarding its 100%-owned Petroleum Prospecting License (PPL) # 246.

According to section 37(2) of the Papua New Guinea Oil and Gas Act 1998, amended to July 31, 2002, "A licensee may, during the term of a petroleum prospecting license, make application to the Director for a petroleum retention license in respect of any block or blocks within the license area... that he satisfies the Minister contains or contain a gas field or part of a gas field, or, for the better administration of a petroleum activities, should be included in a petroleum retention license."

There is an extensive exploration history associated with Cheetah's PPL #246. The Kuru Gas Field wells #'s 1, 2, and, 3 were drilled between 1956 and 1958 by the Australasian Petroleum Company (APC) to test the petroleum potential of the Kuri Anticline. The deepest well was drilled to a depth of 2,695 meters. Kuru well #1 experienced a gas blowout. Kuru well #2 intersected gas saturation intervals in the Late Miocene Puri Limestone and Eocene Mendi Limestone. Kuru well #3 also encountered gas saturation zones in the Eocene Mendi Limestone. Also located on PPL #246 was a single well drilled into what has been called the Bwata gas field.

At total of 125.7 kilometers of seismic data produced by Base Resources in 1989 has been examined. Santos Ltd, Australia's largest gas producer, has also completed a series of geological surveys since 1989.

Tayfun Babadagli, PhD, has authored a study dated November 2004 and commissioned by Cheetah Oil & Gas Ltd., in which earlier studies are noted. Completed in 1994 and 1997, respectively, these studies estimate a total of between 279 billion cubic feet of gas and 344 billion cubic feet of gas in place, within the Kuru and Bwata structures. No flow tests have been conducted, instead log studies and other information has been analyzed and interpreted. Mr. Babadagli cautions that, with the limited data available, the unreliability of these conclusions should be rated as high.

In its filing for application of Petroleum Retention License, Cheetah Oil & Gas Ltd. hopes to at least, delineate the Kuru Gas Field size; confirm the oil and/or gas reserves, if any; and compile an Application for Petroleum Development License if warranted.

Chairman and CEO Mr. Garth Braun notes that "Our application for a Petroleum Retention License is part of our ongoing strategy designed to effectively advance towards our goal of becoming a significant energy producer. We have high expectations of PPL 246 and have been advised as to the likelihood of the Kuru gas field possibly holding commercially attractive quantities of natural gas. This application for a Petroleum Retention License is just one of several broader initiatives we're building upon and hope to announce several major achievements as we enter 2005."

Cheetah Oil & Gas stresses that the standards required to meet Papua New Guinea Department of Petroleum and Energy Retention License approval vary significantly from North American standards, and therefore cannot be relied upon in any jurisdiction outside of Papua New Guinea. Cheetah Oil & Gas Ltd. is specifically not making any representation as to oil or gas reserves that are deemed proved, probable, or possible. The Company believes the potential granting of a Petroleum Retention License would be a significant event in the Company's evolution, but gives no assurance as to the likelihood of receiving such license, or to the existence or quality of theorized underlying energy assets referenced in such license application.

Cheetah Oil & Gas Ltd is evaluating and exploring for energy resources on its five 100%-owned and operated PPL's of approximately 8.3 million acres, as well as its 97.5% farm-in interest in two PPL's of another 3.9 million acres, making this total of 12.2 million acres the largest land position of its kind in Papua New Guinea.