HOUSTON, May 22, 2007 (PRIME NEWSWIRE) -- Northamerican Energy Group Corporation, (Pink Sheets:NNYR) announced today that it has reached an agreement with Monogram Energy, of Richmond, Texas to enter into a Limited Liability Partnership to own and operate a total of seven wells located on two Permian Basin leases in close proximity to production that Northamerican Energy Group currently owns and operates.
Under the terms of the agreement Monogram Energy, as the Majority Partner, will provide all funds necessary to acquire and workover the wells, and Northamerican Energy, as both the General Partner and a Minority Partner, will operate the wells under an operating agreement with the Partnership.
"The wells on these leases are set to produce oil out of various formations ranging from 1700' to 9000' and can easily be refurbished and reworked, at nominal cost, to bring them back on line," stated Jon Ginder, Northamerican Energy's Chairman and CEO.
"These leases are part of the divestitures of leases that Northamerican Energy has been discussing with Monogram Energy since late last year and we will continue to consider other possibilities with Monogram that fit in with our overall program to expand our operations, and production, both in the Permian Basin and in other locations," continued Ginder.
Monogram Energy is a public company soon to be publicly traded under the trading symbol MGRA.
Northamerican Energy Group, Corporation has developed a proven growth strategy of identification, acquisition, and development of domestic hydrocarbon reserves. The Company concentrates on acquiring prospects, which largely are, and have, proven oil and gas production, and which have 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 allow the Company to maximize the income and revenue from each production lease.
Northamerican Energy is currently featured at AudioStocks, where a profile and other information may be obtained by visiting www.audiostocks.com.
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.