FOREST HILLS, N.Y.--(BUSINESS WIRE)--Native American Energy Group, Inc. (the "Company" or "NAEG") (OTC Pink
Sheets: NVMG)
is pleased to announce it has acquired the Bier Oil Lease that contains
a well drilled by Exxon in 1984, consisting of 760 acres located on the
Luster Field in N.E. Montana. The Bier Well, which was later plugged and
abandoned (P&A), has been selected for its production potential and is
to be among the first group in NAEG’s Enhanced
Oil Recovery & well development program.
The Bier was producing 60 barrels of oil per hour when it was capped due
to excessive fluids (3,200 total fluids with a 50% oil cut) because the
expense of removing the water at that time was simply too great. Today’s
proprietary extraction techniques, combined with lower transportation
costs and high profit margins make this well economically feasible again
for re-entry.
The Average amount of BOPD from most producing wells in the Luster Field
was 500 to 1000. The Luster Field was discovered in 1953 by Exxon and
has a total of 300 wells drilled to date. Other major oil companies that
have been in this field include Mobil, Amerada Hess, and others. The
formation(s) from which they have primarily produced are the Mission
Canyon, and the Ratcliff section of the Charles formation in the
Mississippian Period.
By design, and by invitation, Native American Energy Group continues to
work synergistically with Montana’s native
tribal nations and landowners to position the Company in targeted
leasing areas containing the most potential recoverable reserve
capacity, bearing in mind that these projects are also vitally important
in promoting economic development, employment opportunities and
stability to the tribal community. Through its oil and gas property
acquisitions since the Company’s inception,
and a very aggressive leasing program, NAEG has positioned itself as the
largest leaseholder of potential Bakken production on the Fort Peck
Reservation.
CEO Joseph D’Arrigo stated, “What
many people do not realize is that some of these leases can require as
many as 100 signatures when you are not dealing with an individual
landowner, but a large number of allotees. Nevertheless, we have managed
what the Board considers some very significant acquisitions among our
portfolio of previously developed, historically producing wells.”
“It was an early feasibility study,”
said D’Arrigo, “by
our geological team, including a full analysis of the previous operator’s
results and all essential aspects of the historical drilling and
exploration data that relate to several of our leases and their
underlying oil deposits, that has validated the planning and initiation
of a 12-month, 20-well development program. Estimates had been
established and were reported to me during 2005 by our Senior Geologist
& Petroleum Engineer, Tony Johnson, and our exploration team to indicate
2 (two) million barrels of recoverable reserves are accessible in just 5
of the Company’s more significant
acquisitions. We have two (2) rigs from one manufacturer being prepped
for delivery, one later this year and the second in early 2007 to get
the job done. In parallel with this goal, overall, once we have met
certain production levels from the current re-work program, then
exploratory and verification-drilling may begin on our Bakken leases,
concurrently, in late 2007. That is a much more expensive proposition
and represents a larger opportunity, however, to date, of the total
wells drilled in the Bakken Play only 2% are dry holes. On average, the
initial production rates after completion on the Bakken are between 200
- 600 barrels of oil per day, but can range as high as 2000-5000 bopd
depending on the size of your pocket book, the location of the
properties, and the right combination of drilling and completion
technology's. As was previously announced on August 22, 2006, Native
American Energy Group launched its initial oil production on the Fort
Peck Indian Reservation in northeast Montana following the successful
enhancement, reactivation, and completion of its first two wells. We
shall continue to rely on our experienced and devoted personnel who have
made great contributions towards helping us to achieve and increase our
capacity, and we have every confidence that these important projects
will be gradually realized.”
The Company has identified an important issue that we understand
shareholders may wish to have addressed. Due to the fact that the
current share structure may not have been updated, as of yet, on the
financial information websites, the correct and most current facts are
listed below:
NATIVE AMERICAN ENERGY GROUP, INC. (NVMG)
(as of: Tue Oct 03 2006 5:09:53 PM EDT)
Current Price: $0.025
Outstanding Shares: 1,224,542,418
Float: 92,682,418
Market Cap: 30,613,560
52 Week. High: 0.06
52 Week. Low: 0.005
Current Capital Change:
Shares increased by 20 for 1 split
Ex-Date: 2006-09-19
Record Date: 2006-09-07
Transfer Agent: Manhattan Transfer Registrar Co.
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.
