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Cheetah Oil and Gas Ltd.: Kuru Re-Entry Program Drilling Signed

Posted on: Tuesday, 24 January 2006, 09:00 CST

Cheetah Oil and Gas Ltd. (OTCBB:COGL) (the "Company") is pleased to announce the signing of a drilling contract with Simmons Drilling (Overseas) Limited. Simmons will supply a Rig, all associated equipment including personnel for an initial period of one year. The signing of this contract gives the Company exclusive use of a Challenger model 150-64 drill rig with 150,000 lb lifting capacity,with which the Company initially plans to re-enter the Kuru #2 well. This rig will be available to re-enter the Kuru #2 well and other potential targets on the Company's 8.3 million acre land package in PNG as they are defined and financed.

Resumption of the Kuru Re-entry program is slated to commence in the 2nd quarter of 2006. The initial Re-entry well will be Kuru #2 located on PRL-13 in south-central PNG. Recompletion of the well will involve re- entering the 7 inch casing drilling out the cement plugs and running an ultra sonic imaging logging tool to evaluate the integrity of the casing and the condition of the cement bonding. Perforating guns will then be run to evaluate oil and gas potential in up to four intervals: a limestone unit in the Eocene, and three potential reservoirs in the lower, middle and upper Darai limestone. Each zone will be evaluated by swabbing the casing. Upon success an extended production test may then be conducted. Results from this high impact re-completion well will be released upon completion.

The Company is evaluating and exploring for energy resources on its five 100% owned and operated Petroleum prospecting licences and one Petroleum retention Licence of approximately 8.3 million acres in PNG.

Notice Regarding Forward-Looking Statements

This news release contains "forward-looking statements", as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the potential re-entry of the Kuru #2 well and any re-completion or testing of the Kuru #2 well.

Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with oil and gas exploration, particularly in Papua New Guinea; changes in reserve estimates if any; the potential productivity of our properties; changes in the operating costs and changes in economic conditions and conditions in oil and gas exploration. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-KSB for the 2004 fiscal year, our quarterly reports on Form 10-QSB and other current reports filed from time-to-time with the Securities and Exchange Commission.

Cheetah Oil & Gas Ltd. (OTC Bulletin Board:COGL)

Source: Business Wire

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