- VAUGHN 1-18H PRODUCING IN EXCESS OF 1.0 MMCF/D DENVER and CALGARY, Alberta, April 21 /PRNewswire-FirstCall/ -- Storm Cat Energy Corporation (Amex: SCU; TSX: SME) today provided a corporate update of its operations in the Company's Arkansas Fayetteville Shale acreage and its recent credit facility amendment related to its previously announced Powder River Basin (PRB) acquisition. Fayetteville Shale As reported last week, the Vaughn 1-18H well was placed on production on April 12 and was initially producing at 0.4 - 0.7 million cubic feet per day (MMcf/d) while undergoing cleanup. The well continues to clean up and is currently producing in excess of 1.0 MMcf/d. The Company's third well, the Files 1-12H, was tied into sales on April 17, 2008 and is producing in excess of 1.2 MMcf/d while undergoing cleanup. The first of the horizontal wells of the 2008 program, the Ballard 1-18H, has reached TD and casing has been run and cemented. The horizontal lateral length of the Ballard 1-18H is approximately 4,600', which is double the lateral length of the initial three wells that are currently producing in the Fayetteville. Completion of the Ballard 1-18H should commence within the next 30 days. Amendment to Credit Facility The Company funded the previously announced PRB acreage acquisition through an amendment to the Company's existing senior, secured credit facility with Regiment Capital Advisors, LP and Wells Fargo Foothill, part of Wells Fargo & Company. The amendment increased the term facility from $30.0 million to $40.0 million. In addition, the Company and the lenders amended the credit facility to reset loan compliance covenants to reflect the production shortfall in the first quarter of 2008. About Storm Cat Energy Storm Cat Energy is an independent oil and gas company focused on the exploration, production and development of large unconventional gas reserves from fractured shales, coal beds and tight sand formations and, secondarily, from conventional formations. The Company has producing properties in Wyoming's Powder River Basin and Arkansas' Arkoma Basin and exploration and development acreage in Canada. 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." 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. 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 are not limited to, 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, 2007. 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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