Cheyenne Energy Logs Gas Pay in Alberta Well

Cheyenne Energy Inc. reports that in the Company's Northern Alberta exploratory area, the Company drilled a 1,700 meter well with a primary target of Gilwood oil and secondary targets of Bluesky and Gething gas. The Company encountered gas in the secondary target formations. In the area, subsequent to drilling, the Company has successfully acquired 5,120 acres (net 4,096 acres) in the area at a recent Alberta Crown land sale. "The gas potential in the area provides positive initial rationale for further development," stated Tim Cooney, the Company's President and Chief Executive Officer. The recent land acquisition increases the Company's acreage to 7,040 acres (net 5,632 acres) in the area.

The Company is currently laying plans for the drilling of a developmental well in the Company's Camrose operating area on acreage acquired in December of 2004 and announced on December 20, 2004. The well represents the third drilling location for the Company since it entered the area in April of 2002, all targeting Glauconite natural gas. Two previous wells (net 1.4 wells) were successfully drilled and have since been brought on production. The Company has 100% of the working interests on the drilling acreage.

The Company is currently recruiting for a new Vice-President and Chief Financial Officer. Alan Withey has resigned the position. Mr. Withey remains a board member and member of the Audit Committee.