Storm Cat Energy Acquires Alaskan Acreage in Lease Sale

Storm Cat Energy has acquired extensive Petroleum and Natural Gas leases in the Cook Inlet region of Alaska. Approximately 45 kms from Anchorage, the Company has acquired 18,369 acres comprising two five-year leases on two claims. These lands are considered prospective for both coalbed natural gas as well as conventional natural gas. In consideration of the lease acquisitions, Storm Cat has agreed to pay a total US$203,901 or US$11.10 per acre to the title holder, the Alaskan Mental Health Trust.

Mr. Scott Zimmerman, Storm Cat's President has considerable experience in this area and states, "This lease acquisition is in keeping with Storm Cat's objective, to acquire prospective leaseholds where significant value can be added in the development of natural gas resources. The Mat-Su Valley area, north of Anchorage is one of the fastest growing areas in Alaska and one which will greatly benefit if commercial gas resources are developed."