DENVER and CALGARY, Alberta, April 19 /PRNewswire-FirstCall/ -- Storm Cat Energy Corporation (Amex: SCU; TSX: SME) today announced that its Board of Directors has approved an initial 2007 capital budget totalling US$40.0 million. The 2007 capital budget includes US$20.0 million for drilling of approximately 150 wells in the Powder River Basin; US$10.0 million to initiate Storm Cat operated development wells in the Fayetteville Shale; US$4.0 million in Elk Valley to maintain de-watering operations and operate existing production; and US$6.0 million in Alberta for drilling and completion activities. The US$40.0 million capital budget will be funded through cash flow from operations and cash on hand augmented in part by the existing US$35.0 million reserve-based revolving line of credit with JP Morgan, of which US$10.0 million was drawn at March 31, 2007, and the Company's recent US$50 million subordinated debt financing. The 2007 capital budget may be revised based on drilling rig and oilfield service availability, drilling results, operational developments, unanticipated transaction opportunities, market conditions and commodity price fluctuations. Acting Storm Cat President and CEO, Keith J. Knapstad, said: "For a company of our size, we are fortunate to possess a high quality, complementary asset portfolio. I expect 2007 to be a year of transformation and continued growth for Storm Cat as we advance our core operating areas. We intend to increase our asset value in the Powder River Basin through continued aggressive development activities. Additionally, we are eager to shift our Fayetteville shale assets from an acreage play to an active production play. We will build meaningful net asset value in the Fayetteville through drill-bit success in 2007. We were able to put together an attractive position in the Fayetteville in advance of industry interest and are pleased with the improving economics and expanding production extent of this prolific play. Further, we will maintain our diligent work in Elk Valley by continuing our dewatering efforts so we can best determine the economic viability of this project. Storm Cat's 2007 goals are achievable and, equally important, are fully funded due to recent successful financing activities." About Storm Cat Energy Storm Cat Energy is an independent oil and gas company focused on the pursuit, exploration and development of large unconventional gas reserves from fractured shales, coal beds and tight sand formations. The Company has producing properties in Wyoming's Powder River Basin, and exploitation and development acreage in Canada, Arkansas and Alaska. The Company's shares trade on the American Stock Exchange under the symbol "SCU" and in Canada on the Toronto Stock Exchange under the symbol "SME." Company Contact: William Kent Director, Investor Relations Phone: 303-991-5070 http://www.stormcatenergy.com/ Forward-looking Statements This press release contains certain "forward-looking statements", as defined in the United States Private Securities Litigation Reform Act of 1995, and within the meaning of Canadian securities legislation, relating to the proposed use of proceeds. Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions, or that events or conditions "will," "would," "may," "can," "could" or "should" occur. Forward-looking statements are based on the beliefs, estimates and opinions of Storm Cat's management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Storm Cat undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include, but a change in the use of proceeds, the volatility of natural gas prices, the possibility that exploration efforts will not yield economically recoverable quantities of gas, accidents and other risks associated with gas exploration and development operations, the risk that the Company will encounter unanticipated geological factors, the Company's need for and ability to obtain additional financing, the possibility that the Company may not be able to secure permitting and other governmental clearances necessary to carry out the Company's exploration and development plans, and the other risk factors discussed in greater detail in the Company's various filings on SEDAR (http://www.sedar.com/) with Canadian securities regulators and its filings with the U.S. Securities and Exchange Commission, including the Company's Form 10-K for the fiscal year ended December 31, 2006. NO STOCK EXCHANGE HAS REVIEWED OR ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE. DATASOURCE: Storm Cat Energy Corporation CONTACT: William Kent, Director, Investor Relations of Storm Cat Energy Corporation, +1-303-991-5070 Web site: http://www.stormcatenergy.com/

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