Independent Evaluation of Cheetah Oil & Gas Ltd's. Property #246 Estimates 2.6 Trillion Cubic Feet 'tcf' of Gas.

LAS VEGAS -- In the release issued Dec. 20, Cheetah Oil & Gas Ltd. (OTCBB:COGL) made an error regarding the percentage ownership of its subsidiary, Scotia Petroleum. Cheetah owns 85% of Scotia Petroleum and has an option to purchase an additional 14% interest.

The corrected release reads:

INDEPENDENT EVALUATION OF CHEETAH OIL & GAS LTD'S. PROPERTY #246 ESTIMATES 2.6 TRILLION CUBIC FEET 'TCF' OF GAS

As announced on September 14, 2004, Cheetah Oil & Gas Ltd., (OTCBB:COGL) has engaged 3D-GEO of Melbourne Australia to complete a comprehensive evaluation of some of Cheetah's extensive land position. This ongoing process has now resulted in a greater understanding of the oil & gas potential of property #246. As further reported on November 17, the Company has also applied to the Papua New Guinea Department of Petroleum and Energy for a Petroleum Retention License for property #246.

The Company will file on form 8K with the Securities and Exchange Commission, a complete copy of the 3D-GEO evaluation report, and is in the process of updating its website with the evaluation report.

3D-GEO's evaluation of property #246 concludes that "Seismic interpretation, stratigraphic analysis and seven structural cross sections have allowed mapping at top Mesozoic or top Miocene reservoir level of the Kuru undeveloped discovery, five leads and four more potential leads. Total unrisked mean gas-in-place for all leads and plays is 2.6 tcf."

3D-GEO's report made the following conclusions:

Prospectivity

1. PPL 246 has proven hydrocarbon source, generation and migration.

2. PPL 246 has a proven Miocene limestone reservoir and inferred Jurassic sandstone reservoirs.

3. PPL 246 has proven Pliocene Orubadi Mudstone seal on the limestone and proven Cretaceous Ieru shale seal over the inferred Jurassic sands.

4. One undeveloped discovery and five leads have been mapped at top Mesozoic or top Miocene reservoir level and four other plays are suggested.

5. Total unrisked mean gas-in-place for all leads and plays is 2.6 tcf.

6. The undrilled Middletown Culmination has mean, unrisked gas in place of 0.75 tcf gas with an upside of 1.4 tcf gas.

Risk

1. The primary risk is presence of Jurassic reservoir.

2. A secondary risk is seal as both the Pliocene Orubadi Mudstone and Cretaceous Ieru shale are locally thin, so present a potential risk of breaching.

3. For the Mesozoic sand play leads, northern or western closure is not confirmed for the Middletown, Victory Junction, nor SE Iehi /Kikori Bend Leads.

4. The presence, nature and distribution of primary and secondary (fracture) porosity throughout the whole gross-rock volumes modeled is very uncertain. Accordingly the gas-in-place estimates for the Kuru Anticline carry considerable uncertainty.

5. Sustained and commercial gas flow rates are not assured from the Kuru wells which have not been tested.

Garth Braun, Chairman and CEO of Cheetah, said that "We are obviously very excited about this evaluation of our property #246. We also know that, traditionally, oil & gas companies make every effort to keep this kind of detailed information locked-up and away from competitors. However, in this instance we felt the information is fundamentally material for our shareholder's understanding of our company and we value our shareholder's rights as our top priority."

Chief Geologist Jack Sari said, "3D-GEO's estimate of total unrisked mean gas-in-place for all leads and plays at 2.6 Trillion Cubic Feet exceeded our own internal expectations for property 246. As we analyze and interpret the data on our various properties we are gaining a stronger appreciation of the potential hydrocarbon-bearing capacities of these properties."

Petroleum Prospecting License #246 is held by Scotia Petroleum Inc, an 85%-owned subsidiary of Cheetah Oil & Gas. Cheetah also has an option to purchase an additional 14% interest in Scotia Petroleum. Cheetah expects to receive additional 3D-GEO reports on properties #245 and #249 in the weeks to come and will release additional information regarding these evaluations as appropriate.

The Company stresses that it has no gas or oil reserves at this time; that it does not currently have sufficient funding to thoroughly explore, drill or develop its properties; and that no infrastructure currently exists to support oil or gas production. The information presented in the evaluation report authored by 3D-GEO does not meet the formal standards required by North American securities exchanges or other authorities.

Cheetah Oil & Gas Ltd is evaluating and exploring for energy resources on its five 100%-owned and operated PPL's of approximately 8.3 million acres, as well as its 97.5% farm-in interest in two PPL's of another 3.9 million acres, making this total of 12.2 million acres the largest land position of its kind in Papua New Guinea. Additional investor information can be obtained by calling Andrea Bleasdale toll-free at 1-888-228-9571 or by visiting the website at www.cheetahoil.com.

Disclaimer: The Company relies upon the safe Harbor Laws of 1993, 1934, and 1995 for all public news releases. Statements, which are not historical facts, are forward-looking statements. The Company, through its management, makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are necessarily estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. Although it is impossible to identify all such factors they include and are not limited to the existence of underground deposits of commercial quantities of oil and gas; cessation or delays in exploration because of mechanical, operating, financial or other problems; capital expenditures that are either significantly higher or lower than anticipated; and from the number of exploration opportunities being greater or fewer than currently anticipated. Factors which could cause actual results to differ materially from those estimated by the Company include, but are not limited to, government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition and other factors which may be identified from time to time in the Company's public announcements.