HOUSTON, Dec. 26, 2006 (PRIME NEWSWIRE) -- Northamerican Energy Group Corporation (Pink Sheets:NNYG) announced today that it has completed a portion of the necessary due diligence, and thus has begun accepting, and acquiring, a portion of the 17 leases announced in its November 8th press release. The due diligence on the balance of the leases is continuing and Northamerican hopes to complete the acquisition process on the entire package of leases within 90 - 120 days.
"In addition to working over, and putting these wells back on production, the logs and drilling records on some of these wells show one, or more, promising gas and oil production zones that were passed over, and not produced, when the wells were originally drilled. These additional production zones in these wells can be perforated, treated, and put on production at minimal cost, and are encouraging signs that these leases may even be more productive than originally contemplated, without the need and expenses of drilling new wells, which will add to the existing production contemplated on these leases," commented Jon Ginder, Northamerican Energy Group's CEO.
As previously announced, these leases contain a number of inactive gas and oil wells in shallow (1500' - 4300') oil and gas fields located on non-contiguous acreage and leases in Pecos County, Texas, in mature, existing fields, close to, and in some cases adjoining Northamerican Energy's current operations in the Permian Basin.
"These leases, and their wells, are the type of low cost, low risk, primary production properties that fit perfectly into Northamerican's strategy of acquiring economically viable leases that will return investment, and workover costs quickly, resulting in positive cash flow for the company within months," continued Jon Ginder.
Northamerican Energy Group 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 that 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.