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NVMG News NAEG Acquires Mason Oil Lease in Former Exxon Field: Core Sample Reveals Bakken Section

FOREST HILLS, N.Y.--(BUSINESS WIRE)--Native American Energy Group, Inc. (the "Company" or "NAEG") (OTC Pink Sheets: NVMG), a publicly traded, independent energy company that, in Aug 2006, announced its initial oil and natural gas production on the Fort Peck Indian Reservation, is pleased to announce that it has acquired the Mason Oil Lease, located on the Poplar Field in northeast Montana. Although shut-in, the Mason is a well that lines up with the current Bakken trend within NAEG’s targeted leasing area. Bearing in mind that modern, horizontal drilling techniques have made the Bakken zone a well-known producing formation, this acquisition becomes the latest in a series of acquisitions that have strengthened NAEG’s presence in Montana, while increasing its proven & probable reserves and Bakken production potential.

Exxon hit the first discovery well in the Poplar Field in 1951. They operated their wells for a while and then other oil companies like Murphy Oil and Ballard came into the area. A total of 350 wells were drilled in the field and the average amount of production from most wells was 500 BOPD. The formation from which they have primarily produced was the Mission Canyon section of the Charles formation in the Mississippian Period. Research indicates that originally they shot the wrong zone and didn’t see commercial amounts from the Mason, and shut the well in. Century Oil went back in and shot another section and operated the well for a while. The last production on the Mason was around 50 BOPD. It had good shows in the Mission Canyon and Charles C section, also good shows in a 20-foot section called the Nisku. Significant to NAEG is that the Mason Well was cored… and the records and an examination by NAEG’s Geological team of the core sample have revealed a “Bakken” section at 7250 feet. It is to NAEG’s advantage that modern horizontal drilling techniques of recent years now enable operators to economically tap into the real potential of the Bakken formation; whereas, back in the 1950’s & 60’s oil companies simply gathered the oil that was being plentifully released from the zones in the better known producing formations of their time from the conventionally drilled, vertical wells that they owned, and then they basically moved on, leaving much in untapped reserves behind.

Multi-Year Play

Joseph D'Arrigo, President and Chief Executive Officer of Native American Energy Group commented, “NAEG’s expansion is being led to the horizontal middle Bakken play, so I want to take a moment with our shareholders to explain how value is being added. In addition to the wells we have re-worked and completed, we have also had our field operators continuously evaluating the drilling results of other operators in the Williston Basin area. The region was plenty active with drilling programs this year. Since 2001, over 250 new wells have been drilled and completed. Conventional wells in the Bakken Play showed about a 95% success rate and, importantly, there was only a tiny percentage of dry holes. The investor sees little risk and very big rewards in such a scenario. In Richland County, for instance, wells typically produce at initial rates of 200 to 600 barrels of oil per day, after completion, and gas volumes range from 50-300,000 CFGPD. Reserves per well are estimated from 350,000 to 500,000 barrels of oil. There are exceptions to this average which is directly related to the size of your pocket book, the location of the properties, and the right combination of drilling and completion technologies. EOG Resources, Inc. (owned by Continental Resources) stands alone as the leader, with 2000-5000 BOPD being common to this group, along with twice the norm in gas production.”

Mr. D’Arrigo continued, “Bottom line is, the NAEG team has therefore outlined as many as 10 exploratory wells within or adjacent to the Middle Bakken fairway that can be scheduled to begin in 2007. These are to be drilled throughout the 25,000-acre leasehold to determine the Bakken production potential for NAEG. The spacing could be an issue, I am told, but we feel that 640-acre unit spacing will be the norm. I am pleased to say that the budget for the drilling program will be 50% less than current cost due to the utilization of existing wells on the acreage initially. The elimination of the drilling costs associated with the existing 6500' wells, the Company’s own logging and completion services, and our extensive geological research of the area will help position us for a successful future. There should also be additional locations remaining to be drilled well beyond 2007. Some will be grassroots. In that regard, I would anticipate that some wells are likely to be joint-ventured, since we are open to this avenue, while others will be re-entry wells. We intend to bring our production rates gradually up to speed, however, we are also aware that we must have plenty of leased acres for drilling in order to continue the pace. Therefore, we are concentrating a great deal on NAEG’s oil and gas property acquisition program. As we endeavor to enhance our results and improve our position, a significant increase over our 2006 activity can be expected. 3-D seismic surveys, a horizontal Bakken formation program employing NAEG’s cutting edge oil & gas perforation and proprietary, down-hole oil & gas stimulation technology all are planned for 2007 on NAEG’s Bakken wells in the Williston Basin.”

About Native American Energy Group, Inc. (OTC Pink Sheets:NVMG) http://www.nativeamericanenergy.com/aboutus.htm

NAEG's previous achievements can be accessed on the Investor Relations page: http://www.nativeamericanenergy.com/investorrelations.htm

Safe Harbor Statement: This News Release may include forward-looking statements within the meaning of section 27A of the United States Securities Act of 1933, as amended, and section 21E of the United States Securities & Exchange Act of 1934, as amended, with respect to corporate objectives, projections, estimates, operations, acquisition and development of various interests and certain other matters. These statements are made under the "Safe Harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements contained herein.