Storm Cat Energy Provides an Interim Fourth Quarter Operational Update; Company's Reserves, Valuation and Cash Flow on the Rise as Powder River Basin Acreage Is Successfully Drilled

Nov 30, 2005, 00:00 ET from Storm Cat Energy Corporation

    CALGARY, Alberta and DENVER, Nov. 30 /PRNewswire-FirstCall/ -- Storm Cat
 Energy Corporation (Amex:   SCU; TSX.V: SME) provides a year-to-date update on
 the Company's operations.  Highlights include:
     *  A production increase of 33% from 121 Storm Cat operated wells;
     *  As of September 30, 2005, total proved net reserves on the Company's
        Powder River Basin acreage are estimated at 9.932 bcf (billion cubic
        feet), an increase of 5% from the year-end 2005 estimate;
     *  Storm Cat initiated its drilling program on July 19, 2005 and has now
        drilled 26 wells of a 120 well program;
     *  Re-activated three wells on the Elk Valley acreage in British Columbia,
        and drilled two new wells north of the pilot project which encountered
        thick, gas-charged coal seams;
     *  Secured a drilling rig for the Alaska project;
     *  Commencing a three well drilling program at Moose Mountain,
     Powder River Basin, Wyoming
     Current Powder River daily production remains at approximately 4 MMCFD
 (million cubic feet per day) of natural gas from its coalbed methane (CBM)
 play located in Campbell County, Wyoming.  This marks a 33% increase since
 taking over the properties in March 2005.  To date, 26 wells have been
 drilled, including 17 multi-seam completion wells in a combination of the
 Cook, Wall and Pawnee coal seams.  The remaining nine wells are completed in
 only the shallower Canyon coal seam, but drilled on 160-acre pattern versus
 the normally accepted 80-acre pattern.  The 26 wells drilled to date are in
 various stages of dewatering and are currently producing approximately
 400 MCFD (thousand cubic feet per day) which is consistent with Storm Cat's
 internal production model.  Multi-seam completion techniques help economically
 capture incremental reserves in a single wellbore, significantly reducing
 finding and development (F&D) costs.  Well analysis on the experimental Canyon
 160-acre pattern is also showing improved recoveries by capturing hydrocarbons
 with fewer wells.
     Storm Cat currently has three drilling rigs working in the Powder River
 Basin.  The rigs will continue to exploit the Powder CBM leaseholds where the
 Company is currently drilling on its first 37-well Federal Plan of
 Development.  A second Federal Plan of Development, which totals 68 wells, has
 been filed and is in the final process of approval which should secure ample
 Powder River Basin drilling activity going forward.  As previously announced,
 the Company is on track to complete its 120-well program by early second
 quarter 2006.  Storm Cat's projected well economics for its Northeast Spotted
 Horse program is less than $0.88 per MCF in F&D costs with an overall project
 rate of return in excess of 70%.
     Powder River Basin Reserves at September 30, 2005
     Storm Cat also announces results from its recently completed reserve
 report for the period ending September 30, 2005.  The reserves in the report
 only represent the Company's Powder River Basin assets.  Total proved reserves
 were estimated at 9.932 bcf equivalent as compared to 9.450 bcf equivalent at
 December 31, 2004.  Estimated probable reserves were 4.109 bcf as compared to
 4.420 bcf at December 31, 2004.  Storm Cat's estimated, pre-tax future net
 revenue discounted at 10% (commonly known as the SEC PV-10 figure) for proved
 reserves at September 30, 2005 was $44.6 million USD versus $13.9 million USD
 at year-end 2004.  The PV-10 calculation used net commodity prices of
 $11.005 CIG Rocky Mountains per million British thermal units (MMBtu) of
 natural gas.
     Storm Cat's total proved reserve estimates are prepared by independent
 reservoir engineering consultants, Netherland, Sewell & Associates of Houston,
 Texas, and conform to the definition as set forth in the SEC Regulation S-X
 Part 210.4-10 (a) as clarified by subsequent Commission Staff Accounting
 bulletins.  The proved reserves are also in accordance with Financial
 Accounting Standards Board Statement No. 69 requirements.
     Reserve mix for the Powder River Basin is 100% natural gas, with 28%
 categorized as proved developed and 62% proved undeveloped.  In accordance
 with SEC guidelines, proved reserve estimates do not include any probable or
 possible reserves which may exist for Storm Cat's Powder River properties.
 Further, Netherland, Sewell & Associates has not provided probable or possible
 reserves estimates for Storm Cat's other properties at this time.
        Storm Cat Energy Powder River Basin, Wyoming Proved Reserves at
                               September 30, 2005
                             Net Reserves     Future Net Revenue (M$/USD)
                              Gas (MMCF)      Total           Present Worth
                                           Undiscounted      at 10% Discount
     Proved Developed          2,197.1       13,898.5           11,918.0
        * Producing            1,665.5       10,252.8            9,065.8
        * Non-Producing          531.6        3,645.7            2,852.2
     Proved Undeveloped        7,734.5       44,179.3           32,718.5
          Total Proved         9,931.6       58,077.8           44,636.5
          Total Probable       4,109.2       25,015.4           19,194.9
         Assumes commodity prices of $11.005/MMBtu CIG Rocky Mountains
     Elk Valley, British Columbia, Canada
     As announced in the June 9, 2005 news release, Storm Cat entered into a
 Farm-in and Joint Venture agreement, with EnCana Corporation, on 77,775 gross
 acres (31,110 gross hectares) in the Elk Valley area of southeastern British
 Columbia.  To date, Storm Cat has re-activated three wells in the Elk Valley
 western pilot, adding a new coal interval to the completion in two of three
 wells.  During the 12 months the pilot was shut-in, reservoir pressures had
 rebounded to the point that a significant volume of water must be produced
 before pre-shut-in gas rates are expected from the original coal seams.
 Currently, the three wells are producing approximately 95 MCFD of gas and
 300 BWPD (barrels of water per day).
     Storm Cat and EnCana drilled two new wells north of the pilot project.
 The ECA Stormcat Mosquito d-85-L/82-J-2 was drilled to a total depth of
 2,388 feet (728 meters), encountering 175 feet (53 meters) of coal in nine
 coal packages between 656 and 2,333 feet (200 and 711 meters).  The ECA ECOG
 GREENHILLS a-84-L/82-J-2 was then drilled to 2,421 feet (738 meters), with
 207 feet (63 meters) of coal in the same nine coal packages between 856 and
 2,352 feet (261 and 717) meters deep.  Gas shows were recorded in the coals.
 The new wells were drilled faster and straighter than the original pilot
 wells.  The d-85 well was drilled, cased and cemented in eight days, seven
 hours.  The a-84 well was drilled, cased, and cemented in seven days,
 10 hours.  Both wells are being prepared for initial completion and tie-in to
 the pilot facilities at this time.   These newly drilled wells are expected to
 be placed on production test in mid-January 2006.  With success in the
 exploratory wells and in the pilot reactivation, Storm Cat will establish a
 second core CBM operating area.
     Storm Cat now owns 100% interest in over 35,000 acres on-shore Cook Inlet.
 Negotiations with drilling contractors are currently underway in order to
 secure a rig for drilling the initial test well.  A location for the Northern
 Dancer No. 1 has been selected.  The well will be drilled to a depth of
 approximately 7,500 feet to test conventional targets in the Tyoneck formation
 as well as evaluate the shallower coalbed methane potential.  Spud date on
 this initial exploratory well is estimated for mid-January.
     Moose Mountain, Saskatchewan, Canada
     Storm Cat completed its preliminary geological/engineering review of the
 Moose Mountain, Saskatchewan area.  Storm Cat holds a 30% WI on a 236,000-acre
 block.  The Company now intends to focus its attention on the Second White
 Specks formation.  Geological and engineering data indicate the Second White
 Specks in the Moose Mountain area has similar characteristics to widespread
 producing areas in western Saskatchewan.  Storm Cat plans to drill three
 exploratory wells in mid-December or early January, 2006, depending upon rig
     Storm Cat continues evaluating the reserve potential and emerging markets
 for its coalbed methane exploration licenses which encompass more than
 18 million acres.  In the fulfillment of its Production Sharing Contracts (the
 "PSC"), Storm Cat mapped the surface geology in four basins; Tsaidam, Nalaikh,
 Baga, and Tugrug, constructed cross sections in Tsaidam basin, and conducted
 geophysical surveys (Vertical Electrical Surveys) in Tsaidam and Tugrug
 basins.  During the field mapping, Storm Cat geologists trenched the coals,
 mapped outcrops, recorded faults and re-surveyed some of the original
 coreholes to better understand the coal stratigraphy and re-map the surface
 geology.  During the winter season, Storm Cat will be analyzing this data to
 define future operations.
     Management Comments
     J. Scott Zimmerman, President and Chief Executive Officer, said:
 "Increased activity during the first two months of the fourth quarter has set
 the tone as we move toward a busy 2006.  The recent equity financings have
 provided Storm Cat with approximately $25 million USD in its treasury,
 allowing management to execute the development and expansion of its high
 potential portfolio of unconventional gas opportunities.  Specifically, we
 believe the expansion of our drilling operations in Elk Valley, to the north,
 finds a highly prospective area within the EnCana farm-in acreage.  We will
 put the drilling results here under a rigorous evaluation before claiming
 victory, but, for the time being, we're pleased by our early well analysis.
 The reduction in the drill and completion time for the first wells exceeds our
 internal expectations.  We hope to improve on drill rates as we gain greater
 knowledge of the play.  I've said before, the Elk Valley play has vast
 potential for Storm Cat's shareholder value and, as such, we are focused on
 proving its potential in 2006."
     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, exploitation/development
 acreage in Canada and Alaska, and high-risk, high-reward exploration acreage
 in Mongolia.  The company's shares trade on the American Stock Exchange as
 "SCU" and on the Toronto Venture Exchange as "SME."
     By Order of the Board of Directors
     Storm Cat Energy Corporation
     J. Scott Zimmerman
     Forward-looking Statements
     This press release contains certain forward-looking statements within the
 meaning of Section 27A of the Securities and Exchange Act of 1933, as amended,
 and Section 21E of the Securities and Exchange Act of 1934, as amended, which
 are intended to be covered by the safe harbors created therein.  Investors are
 cautioned that all forward-looking statements involve risks and uncertainties,
 including but not limited to those discussed in the company's Annual Report
 for the year ended December 31, 2004.  Although Storm Cat Energy believes the
 assumptions underlying the forward-looking statements contained herein are
 reasonable, there can be no assurance that the forward-looking statements
 included in this press release will prove to be accurate.  In light of the
 significant uncertainties inherent in the forward-looking statements included
 herein, the inclusion herein should not be regarded as a representation by the
 company or any other person that the objectives and plans of the company will
 be achieved.

SOURCE Storm Cat Energy Corporation