HOUSTON, March 3, 2006 (PRIMEZONE) -- Northamerican Energy Group Corporation (Pink Sheets:NNYG) announced today that it signed a lease agreement in December, 2005, with the Trustees of the Benoit Estate to acquire 100% of the working interests in a lease in Pecos County, Texas.
By signing this lease Northamerican Energy Group now controls all production rights on this lease, whereas in the assignment from the former leaseholder Northamerican Energy was limited to the shallow production rights on 1/2 of the lease.
Signing this lease now enables Northamerican Energy to enter into discussions with a Midland based drilling and operating company to continue, and complete, the additional ten well oil and gas drilling programs on this lease that this company had initiated in late 2004.
"We are pleased to announce this acquisition as a key part of Northamerican Energy's plans and that our ability to totally acquire this valuable lease is vitally important to our growth strategy since all new wells being drilled in the Permian Basin area are now being drilled into deep, not shallow, zones," stated Jon Ginder, Northamerican Energy Group's CEO.
Northamerican Energy Group Corporation has developed a proven growth strategy of identification, acquisition, and development of domestic hydrocarbon reserves. The Company will concentrate on acquiring prospects, which are, and have, proven oil and gas production which has been operating for many, many years. By acquiring working interests in proven low-risk fields the Company minimizes the risk by not "wildcatting or drilling dry-holes," and incurring any expense of building major infrastructure to get the product to market. Finally, the Company's low-cost operations and low overhead structure allows the Company to maximize the income and revenue from each production lease.
Safe Harbor Provisions
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties including, but not limited to, the impact of competitive products, the ability to meet customer demand, the ability to manage growth, acquisitions of technology, equipment, or human resources, the effect of economic and business conditions, and the ability to attract and retain skilled personnel. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.