HOUSTON, Jan. 22, 2007 (PRIME NEWSWIRE) -- Northamerican Energy Group Corporation (Pink Sheets:NNYR) announced today that, as part of its efforts to initiate and commence natural gas production, it recently signed a Gas Purchase Agreement with Southern Union Gas Services, a subsidiary of Southern Union Company (NYSE:SUG).
"Northamerican Energy will not only be putting some of its current natural gas on its existing oil and gas wells back into production, but also the gas wells that are part of its 17 lease package that Northamerican announced on November 8th and December 26th 2006," announced Jon Ginder, Northamerican's Chairman and CEO.
"This agreement will greatly enhance Northamerican's ability to move forward with planned acquisitions of additional leases, and many of the other short, and long, term plans we have previously announced," continued Jon Ginder.
Houston-based Southern Union Company (NYSE:SUG) is one of the nation's leading diversified natural gas companies, and it owns and operates one of the nation's largest natural gas pipeline systems with more than 20,000 miles of gathering and transportation pipelines and North America's largest liquefied natural gas import terminal.
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 allow 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.