HMGP Hemi Energy Group Inc (GM)

Hemi Energy Group, Inc. (Pink Sheets: HMGP) acquired three adjacent oil and gas leases with a total of 360 gross acres in Sabine County near the town of Hemphill, Texas. Natural gas prices are currently more than two times higher than at the time the leases were purchased in 2003. The geological formations under Hemi's leases, known as James Lime, Cotton Valley and Travis Peak, are the same formations that are under the major gas field that is now only approximately four miles to the north in Shelby County. In the past these leases have had two producing gas wells, but because of economic reasons they were abandoned in the 1970s. Major oil companies have been developing and producing these natural gas fields for over five years which started approximately 15 miles away and have been steadily trending toward the Hemi leases. Currently new gas wells are being drilled approximately 4 miles north. The width of the proven gas reserves in these geological formations are narrow, being only 5 to 10 miles wide. The average gas well in this major gas field in Shelby County typically produces over 2,000 MCF per day 2(mMCF) or gross revenue of approximately $360,000 per month. These gas wells and gas fields have common characteristics of a slow rate of decline in gas production and have an economically viable life of over ten years. Management is in ongoing discussions with industry partners about how to best develop the leases natural gas reserves on the Hemi leases, which have the same geological formations as the trending gas fields. Information discovered in Hemi's extensive library of geological information and historical information for the area makes management strongly believe there are substantial gas reserves in place. Several financing options are being considered, such as joint venture, specialized exploration/drilling funds, etc., for funding the drilling of a new gas well on the lease. About Hemi Hemi Energy Group is an independent crude oil and natural gas producer employing a unique business model capitalizing on technological advances to exploit mature fields with millions of barrels of proven oil remaining in the ground. Using attractive lease/royalty packages, Hemi has secured, in its history, tens of thousands of acres of productive domestic projects. The company's forward-thinking strategy has placed it in an enviable position at a time when prices and global demand for oil continue to rise. Building on decades of experience in enhanced oil recovery, Hemi has successfully amassed a substantial and attractive portfolio of these high-quality domestic properties. By streamlining operations through cutting-edge technologies, Hemi has the ability to operate more effectively and efficiently than larger oil companies. "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995 Statements in this press release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments, and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, risk factors inherent in doing business. Forward-looking statements may be identified by terms such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "forecasts," "potential," or "continue," or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The company has no obligation to update these forward-looking statements.