HOUSTON, March 14, 2007 (PRIME NEWSWIRE) -- Northamerican Energy Group Corporation (Pink Sheets:NNYR) announced today that as a result of the Company's desire to provide more transparency for its shareholders and to assist financial analysts interested in issuing reports about the Company, it has completed budgets and cash flow projections for the various lease acquisitions announced during the past six months. Additionally, the company today confirmed that an analyst has initiated the process of generating a research report.
Jon Ginder, Chairman and CEO for Northamerican Energy Group said, "Although these projections were very conservative and did not assume any production other than what our engineers could verify, based upon existing production figures gleaned from files and records furnished by the owner/operators and the TRRC, the cash flow projections were better than anticipated and should easily add in excess of $2 million annually to Northamerican's net cash flow."
Due diligence on the lease acquisitions continues and Northamerican hopes to complete the acquisition process on the entire package of leases within the next 6 months. As previously announced, the leases contain a number of inactive gas and oil wells in shallow (1500'- 4300') fields located 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 Mr. Ginder.
For further information about the analyst report, please visit www.audiostocks.com.
About Northamerican Energy Group Corporation
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.Northamerican Energy Group Corporation - www.northamericanenergy.net