HMGP Hemi Energy Group Inc (GM)

Hemi Energy Group, Inc. (Pink Sheets:HMGP) has entered its near term final phase of lease acquisitions in Woodson County, Kansas. Hemi is in the final phase of acquiring additional leases with the majority of lease acreages being continguous to the current Woodson County leases. These additional leases, as completed, will more than double the size of its operational footprint in Woodson County. The new oil well, Hemi 2, and the reworked mature wells on the leases at Woodson County are producing oil and we expect to meet our current production projections from these leases. Prolonged heavy rains in this area have caused flooded field conditions, but have not affected daily operations of producing oil. However these conditions will not allow Hemi to move heavy drilling equipment to the permitted drill sites for new drilling on these leases. Hemi will be returning to Woodson County leases to drill these permitted sites as soon as field conditions allow. The Woodson County new oil well development drilling program will continue as planned throughout the year. Rather than fall behind in production in our EOR and drilling schedules, and because of the above weather conditions, Hemi has decided to move the drilling program to the Montgomery County, Kansas lease near the town of Cherryvale. We had planned to conduct the drilling on this site in the 3rd or 4th quarter of 2007 but moved up the timetable to effectively use equipment on this lease which has favorable field conditions. The Montgomery County lease continues to produce better than average oil production from its mature reworked wells. Hemi President Keith A. Anderson says, "New research has located natural gas wells that were drilled from 1950 to 1980 on the Montgomery County leases. These wells were drilled as oil wells, but rather than finding oil the developer found natural gas. The wells, which drill stem tested or open flow tested at between 300 to 400 mcf per day make them valuable wells at today's natural gas prices. However, at the time they were drilled, low gas prices led to the wells being plugged and abandoned due to minimal crude oil being present in the formation and no gas pipeline availability in the area at that time. These wells were drilled and tested in the Mississippian formation which is a deeper gas pay zone formation, than the geological formations of(Squirrel/Bartlesville) in which we are conducting ongoing EOR production. We have identified a new drill site near an old gas well and are also conducting re-entry drilling operations in 2 or 3 old gas wells that were not completed. We are drilling and completing the first gas well in May." 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 thousand 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. For additional information, please go to http://hemienergy.com or http://www.stockinformationsystems.com/c/HMGP/index.html. "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. LIMB