HOUSTON, July 3, 2007 (PRIME NEWSWIRE) -- Northamerican Energy Group Corporation, (Pink Sheets:NNYR) announced today that it has reached an agreement with Monogram Energy (Pink Sheets:MGRA) of Richmond, Texas to expand the previously announced Partnership to own, and operate wells located on in the Permian Basin.
Under the terms of the revised agreement, Northamerican and Monogram have agreed to become equal partners on both a portion of the leases that Northamerican currently owns, as well as leases that Northamerican is under agreement to acquire under previously announced agreements.
Northamerican and Monogram will jointly provide the funds necessary to acquire and work over the wells, and Northamerican Energy will operate the wells under an operating agreement with the Partnership.
In addition, Northamerican and Monogram have agreed to make a substantial investment in their counterparts by exchanging 12 million shares, on a one-for-one basis, in their respective firms.
This second agreement serves to help Northamerican Energy and its stockholders establish, and fortify, the intrinsic value of Northamerican's stock. Furthermore, this agreement not only provides Monogram Energy with additional expertise, but also the resources to promptly expand their holdings and cash flow as Northamerican and Monogram move forward, and to participate in the various acquisitions Northamerican has previously identified and worked to bring to fruition.
Northamerican and Monogram have been discussing these agreements for some time, according to Jon Ginder, CEO of Northamerican. "We will continue to consider other possibilities with Monogram that fit in with our overall program to expand our operations, and production in the Permian Basin, as well as in other locations," said Mr. Ginder.
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, 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 allows 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
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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.