Cheyenne Raises $2.3M in Private Placement

Cheyenne Energy Inc. said that it has closed its previously announced private placement offering for a total of 4,925,138 flow-through common shares issued at $0.35 per flow-through share and a total of 1,714,815 units at $0.32 per unit for total gross proceeds of approximately $2.3 million.

Each unit consists of one common share plus one warrant to purchase an additional common share at a price of $0.65 per share with an expiry of 18 months from the date of issuance. The Company agreed to pay a commission of 7.25% of the gross proceeds and broker warrants equal to 10% of the securities sold. All securities were issued subject to trading restrictions until April 27, 2007.

Proceeds from the offering will be used for further development of the Company's Hawk play in northwestern Alberta and for working capital.

The financing was led by Wellington West Capital Inc. of Winnipeg, Manitoba.

Cheyenne Energy Inc. is a public energy company engaged in the exploration for and development and production of crude oil and natural gas, primarily in Western Canada. Cheyenne's corporate strategy is to grow and develop oil and gas reserves through the drill bit and add value for its shareholders.